India: MbPT, JNPT Resolve Differences over Capital Dredging

Mumbai Port Trust (MbPT) and Jawaharlal Nehru Port Trust (JNPT) have resolved their differences over a crucial dredging project.

According to The Economic Times, the differences were resolved after an intervention by the shipping ministry. JNPT and Mumbai Port had differences over sharing of costs for the dredging project.

N. Muruganandan, joint secretary in the shipping ministry, said: “The agreement makes Mumbai Port Trust share 1/8th of the cost of the project, while the charges payable to Mumbai Port Trust have also come down to 18% from 39-42 %.”

The Mumbai harbour channel, which is about 21-km long, currently has a depth of about 11 metres. The dredging project is expected to increase its depth to 14 metres.

The Economic Times reports that the Royal Boskalis Westminster had quoted the lowest amount for dredging the channel at Rs 1,220 crore.

JNPT will now sign a 25-month contract for the project which will help accommodate vessels of over 6,000 twenty-foot equivalent unit capacity and up to 12-metre draught.

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Dredging Today Staff, August 1, 2012; Image: mumbaiport