P&O venture favoured to land Bombay port project
Peninsular & Oriental Steam Navigation Co (P&O) says a joint-venture firm in which it is a partner has been chosen as preferred bidder for a US$200 million port project for the Nava Sheva harbour in Bombay.
It hoped a licence agreement would be signed soon under which it would reclaim the site, then build and operate a container terminal under a 30-year concession.
'The total joint-venture investment over the period of the project is estimated at $200 million and will be funded by a combination of equity and third-party debt,' P&O said.
It named the other principal partners in the project as Malasyian logistics and transport group Konsortium Perkapalan and DBC Port Management, part of Bombay's largest stevedoring group.
The plan is to complete the container terminal, with a 600-metre quay, in 2000 and give it capacity to handle more than 600,000 teus (20 ft equivalent units) annually.
The terminal would be managed by P&O unit P&O Ports, while construction would be managed by another group company, Bovis Construction.
Container traffic has grown through Bombay's two ports at an annual rate of more than 16 per cent since 1980.
P&O has long experience in port development in fast-growing parts of the world and last year strengthened its own presence in the global container shipping trade by forming a liner venture with Dutch Koninklijke Nedlloyd Groep.