Mormugao Port Authority (MPA) has shared a financial proposal with Goa Shipyard Limited (GSL) for the leasing of berth no. 9 where GSL intends to set up a ship repair and refit facility. GSL had instituted a technical team to conduct a site visit and the team found berth no. 9 to be a viable location for a repair and construction facility.
GSL is expected to submit a counter offer by mid-January, said highly placed sources.
MPA’s proposal contains details about the cost of leasing the berth, which was earlier used for handling iron ore, for 30 years.
“The MoU with GSL was signed last year. It is currently at the discussion stage. We have given GSL a financial proposal and GSL will revert with their offer,” said a MPA official, adding, “We hope that we can quickly agree on a financial model for 25-30 years.”
On September 25, 2023, Union minister for shipping, ports and waterways Sarbananda Sonowal had announced GSL’s interest in the port’s idle facilities.
MPA plans to offer 200-250m of waterfront area at berth no. 9 to the defence sector shipyard. GSL’s existing facility limits further expansion and the shipyard is unable to bid for construction of larger vessels as it does not have the depth and area at its current location. GSL is eager to build larger and more warships for the export market, officials said.
In July, it was reported that the government-run port failed to attract interest from private players to redevelop berth no. 9 and three barge jetties through the public-private-partnership (PPP) route, which would have required an investment of around Rs 842 crore.
“We cannot keep the berth idle for long and if GSL is not interested, then MPA will have to go for a re-tender after remodelling the PPP model,” said a high ranking official at MPA.
Berth no. 9 was meant to be used for cargo handling, particularly iron ore. However, the turmoil in the iron ore mining industry over the last decade and the uncertainty over the auctioning of mines and necessary clearances have prompted industry players to shy away from taking up the berth for redevelopment.
