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Last Updated : Feb 11, 2019 04:07 PM IST | Source: Moneycontrol.com

IWAI shortlists DP World, IL&FS for maintenance of logistics hub across NW-1

The work will now resume only after the cabinet meetings happen under a new government which will be elected to power after Lok Sabha elections, due in April- May 2019

Nikita Vashisht @nikita_vashisht
 
 
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Inland Waterways Authority of India (IWAI) has shortlisted bidders, including DP World and IL&FS, who could be responsible for operating and maintaining multi-modal logistics hub at Varanasi.

A senior official from IWAI told Moneycontrol that the Authority had completed tendering process till request for qualification (RFQ) stage in November after which four bidders were shortlisted. These were IL&FS, JM Baxi, Dubai based DP World and a joint venture between Singapore based Portek and Indian ACTL.

“In a few months’ time, we will take our proposal to the cabinet after which request for proposal (RFP) will be done,” he said.

IWAI, under the aegis of Ministry of Shipping, has planned three multi-modal logistics hub across national waterways-1, each at Varanasi (Uttar Pradesh), Sahibganj (Jharkhand) and Haldia (Kolkata). Of these, the first two hubs will be operated and maintained by private players.

Logistics hubs act as “freight aggregation and distribution hubs” to enable long haul freight movement between hubs on large-size trucks, rail and waterways.

The work will now resume only after the cabinet meetings happen under a new government which will be elected to power after Lok Sabha elections, due in April- May 2019.

According to sources, the hub will be given to the private player for a period of 30 years, on a royalty per tonne of cargo and revenue sharing basis. The private players could also be entrusted with development/expansion of these hubs at an estimated cost of Rs 350 crore.

The official further said that tender process for logistics hub at Sahibganj will happen based on a “landlord model”.

“For Sahibganj, we will follow a landlord model, which will be a public-private-partnership (PPP) based landlord model… IWAI will acquire about 250 acres of land, request for which has already been filed, from the Jharkhand government… Once that land is acquired, we will lease out the land to private players, through tender process, to the highest bidder. That player will develop the hub on that land,” the official said.

Development of these hubs is part of Jal Marg Vikas project (JMVP), approved by the cabinet in January 2018. The project, which is expected to be completed by 2023, aims at development of NW1 at the cost of about Rs 5,369.18 crore.
First Published on Feb 11, 2019 04:07 pm
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