Malabar Ports bags PPP contract to develop Ponnani Port

Exim News Service reported that Ponnani has emerged as the first port in Kerala to be taken up for development through the public private partnership route even though the proposal was confirmed relatively late, compared to similar projects that have been hanging fire since a long time.

The state government has inked a concession pact with Malabar Ports Pvt Limited from Chennai for constructing Ponnani port on build operate transfer basis.

Malabar Ports was adjudged the winner of the contract by the Swiss Challenge method, which was adopted for the first time in the state to identify private investors for a PPP project. The pact is for a period of 30 years and Malabar Ports will pay royalty of 2.75% to the state during the first 15 years and 4.5% in the next 15 years.

Although awaiting environment clearance from the Union government, the project is envisaged to be concluded within four years after the commencement of work.

The port was originally planned to be developed in three phases, at an estimated outlay of INR 2,000 crore. The pact with Malabar Ports is for constructing the first phase, which, according to Port Department officials, could cost INR 763 crore.

While the existing port is situated in the estuary where the river Bharatapuzha meets the Arabian Sea, the all weather facility proposed to be developed has been designed to handle vessels with capacity of up to 50,000 DWT.

Once operational, the port is expected to accelerate the all round development of districts like Malapuram, Palakkad and Thrissur, besides complementing the Palakkad Coimbatore industrial belt.