The UPA Government’s reluctance to create a level playing field for all countries on the matter of investments in the port sector seems to have ensured that the Chinese will now stay away from making crucial bids. Of the five consortia, comprising 16 companies that have bid for the Rs 5,348 crore international transhipment terminal set to come up at Vizhinjam in Kerala, for which bids closed on January 31, not a single one was Chinese.This is in contrast to 2006, when initial bids called for the same project had resulted in a Chinese consortium along with an Indian partner emerging as the lowest bidders. While the CPI(M)-led state Government had provided the necessary clearances for the project at that time, the Centre had refused to approve the award citing ‘security concerns’. Bids for the project had been subsequently re-tendered, even as the Left parties continued to raise their demand to allow Chinese FDI in the port sector.However, Chinese companies seem to be keeping their distance, with not a single firm putting in bids among the 16 participating companies. “We have received an overwhelming response from various Indian, Malaysian, Dubai and Singapore-based companies. There are no Chinese firms,” L Radhakrishnan, secretary (ports), and director and chief executive officer of Vizhinjam International Seaport Limited (VISL) told The Indian Express from Kerala. This is not surprising, given that no Chinese company had showed up for a pre-bid global investors meet last year.The five consortia that have submitted bids comprise DS Constructions, Appolo Enterprises and Dubai-based KGL Ports International; Nagarjuna Construction Company, Singapore-based OPM and Maytas; Videocon Industries, Gammon India, Gammon Infra and Sical Logistics; Lanco Infratech, Lanco Power and Malaysia-based Pembinaan Redzai Sdn Bdh; and lastly Zoom Developers and the UK-based Portia Management Service and Peter Fraenkel and Partners. In 2006, Zoom developers had partnered with the Chinese consortium for the same project.The next stage would be an evaluation of the technical bids. “Since it is a four-cover bid process, we will be scrutinising the technical bids and then the financial bids. The entire process would be completed within six months,” said Radhakrishnan. The terminal is expected to cut down freight costs for Indian exporters, currently 11.4% of total cost compared to 6.1% globally.
