The 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.
The Authority had completed tendering process till request for qualification (RFQ) stage in November after which four bidders were shortlisted—IL&FS, JM Baxi, Dubai based DP World and a joint venture between Singapore based Portek and Indian ACTL. According to an official from IWAI, in a few months’ time, the Authority will take the proposal to the cabinet after which request for proposal (RFP) will be done. IWAI, under the aegis of Ministry of Shipping, has planned three multi-modal logistics hub across National Waterways-1 (NW-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.
These logistics hubs will 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 the upcoming Lok Sabha elections.
These logistic hubs are to 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 informed that the tender process for the 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). 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), which is expected to be completed by 2023 and aims at development of NW-1 at a cost of nearly Rs 5,369.18 crore.
