Vedanta, Abu Dhabi Ports Bid for Rs 7,056 Crore Container Terminal at VOC Port

Vedanta Ltd and a consortium led by Abu Dhabi Ports Company PJSC have submitted initial bids for a tender issued by V O Chidambaranar Port Authority to construct a 4 million TEUs capacity container terminal in the port’s outer harbor. The project, valued at Rs 7,055.95 crores, marks a significant development after major port operators opted out, contributing to a high-profile initiative for the government.

Vedanta Ltd, the Indian subsidiary of London-listed Vedanta Resources Plc owned by Anil Agarwal, and Abu Dhabi Ports Company PJSC, part of the AD Ports Group, have emerged as contenders. However, doubts linger over their ability to meet technical qualifications and secure necessary clearances.

Sterlite Ports Ltd, Vedanta's infrastructure arm, currently operates an 11-million-ton cargo berth at Visakhapatnam Port, primarily handling coal imports. This limited experience in container terminal operations raises concerns about Vedanta's suitability for the VOC Port project, as noted by industry sources familiar with the tender process.

Meanwhile, Abu Dhabi Ports Company, backed by ADQ, a prominent holding company in the Middle East, faces potential challenges regarding security clearance due to its existing operations at Karachi Port in Pakistan, where it manages a container terminal.

The outcome of the bidding process will hinge on technical evaluations and security considerations, with the Government of India keen on advancing the prestigious container terminal project despite earlier setbacks with top port operators opting out.

ET