Professional Documents
Culture Documents
Nortech Trinity - Dredging Opportunity
Nortech Trinity - Dredging Opportunity
Private Limited
Dredging Business Opportunity
DREDGING
Opportunities & Roadmap
India has embarked on a programme to utilise its vast 7,500 km coastline for commercial
purposes called "Sagarmala." The project was unveiled by Prime Minister Narendra Modi
at the Maritime India Summit in Mumbai last week. It is expected to create 40 lakh direct
employment and boost merchandise exports.
"With the need to supplement the choked road and rail network, Sagar Mala has
envisaged 150 projects for port augmentation, entailing an investment of Rs. 1,00,000
crore. Approximately 20 percent of port development costs relate to dredging activity
resulting in a market opportunity of Rs. 20,000 crore,"
The government has directed all its 12 state-owned ports to finalize capital and
maintenance dredging contracts on the basis of open competitive bidding, according to
the new guidelines framed by the shipping ministry. Capital dredging is for increasing the
depth of navigational channels while maintenance dredging is to maintain depths. The
guidelines give details of the pre-dredging and post-dredging surveys to be carried out by
these ports to avert disputes and arbitration.
The shipping ministry, which controls these 12 ports, has also advised them to opt for
long-term maintenance dredging contract of as long as five years instead of the current
practice of going for annual contracts. The ministry has also suggested the method to be
adopted keeping in view the annual siltation pattern at these ports.
Among the major ports, the “depth based dredging contract” may be adopted at Kolkata,
Cochin and Kandla where sufficient data from previous years are available and dredging
is required throughout the year; the contract may be linked with incentive and disincentive
mode of payment for guaranteeing the depth.
When the dredging is only seasonal, a quantity-based method of payment could be used.
In exceptional circumstances, where dredging is required to be done for a very short
period, a day hire method may also be adopted.
Considering the soil nature, west coast ports such as Mumbai, Jawaharlal Nehru port,
Cochin, New Mangalore and Mormugao can explore the feasibility of adopting a nautical
depth concept after conducting research studies. In the nautical depth concept, the ship’s
keel may appear to touch the sea bottom but it navigates through this layer without
causing damage to the ship’s keel. The adoption of nautical depth will reduce annual
maintenance dredging.
The new guideline says the government has the right to assign, in public interest, any
contract for dredging in any of the 12 ports to state-owned Dredging Corp. of India Ltd on
a nomination basis (without floating a tender).
Because of frequent variation in price due to de-regulation of fuel prices, price adjustment
will be allowed irrespective of contract duration and this may be incorporated in the tender
documents, the ministry wrote.
Previously, no price adjustment was permitted in respect of contracts less than six months
in duration.
Indian firms owning Indian flag dredgers including Dredging Corp. of India shall have the
first right of refusal if their rate is within 10% of the lowest price quoted by a foreign
dredging contractor in a public tender.
“This would apply to both capital and maintenance dredging tenders. If more than one
firm owning Indian flag dredger participates in the tender, the right of first refusal will go
to that Indian firm which has quoted the lowest rate and is within 10% of the lowest offer,”
according to norms.
The request for proposal (RFP) process for award of contract should commence only after
approval/sanction of the plan and statutory clearances by competent authorities.
The dredger to be deployed for the project should be of absolute ownership, disponent
ownership (not a registered owner but one who has control over the commercial
operations of the ship by chartering the vessel), time charter (an arrangement wherein
the ship owner lets or leases his vessel and crew to the charterer for a stipulated period
of time) and bare boat charter (the charterer hires only the ship while taking commercial
and technical responsibility for the vessel including maintenance, crew and insurance).
Hiring of dredgers shall also be considered.
In case the firm does not own the dredger and plans to execute the capital/maintenance
dredging works by arranging the dredger by wet leasing or hiring, it has to pay an
additional security deposit of 5% in addition to the security deposit indicated in the tender,
which will be returned without interest after completion of the dredging work.
Besides, details of arranging dredgers for the work with “irrevocable letter of authority”
from the owner have to be submitted by the bidder stating that the dredger so
charted/hired shall not be withdrawn till completion of the work.
In case of rock dredging works, the firm should have the experience of rock dredging of
at least 20% of the estimated cost of the project and have necessary equipment
considering the classification of rock, either by own or by hiring. In case of the latter, the
dredging firm has to furnish an assurance letter, at the time of pre-qualification, from the
owner on sparing the dredging equipment.
To settle disputes, ports may incorporate a new mechanism in tenders by setting up a
panel under the chairmanship of the port chairman with chief engineer, financial advisor
and chief accounts officer and the deputy port conservator of the port as members. The
panel will examine the dispute and give its recommendation to the board of trustees. If
the row is not settled amicably, it will be referred to arbitration.
India’s state-owed ports will require extensive dredging to implement the so-called
Sagarmala project which seeks to develop ports on a large scale by improving existing
ports and creating new ports and also development of the inland water transport sector.
Capital Dredging, Maintenance Dredging, Underwater Drilling & Blasting for Hard Rock,
Shore Protection, Land Reclamation & Beach Nourishment.
INLAND WATERWAYS
Subsea Services
Seabed interventions for gas and oil pipelines and cable installations, Trenching &
backfilling, Rock installation and ballasting, Pile driving & Installation, Reef Construction,
Sewing and Laying of Geotextile, Gabion Installation and Construction.
Marine Infrastructure
Rock Revetment Works, Breakwater, Jetty Construction, Diking, Quarrying and Rock
Transportation.
India a Prospect:
Supporting our clients in devising strategic plans and implementing corporate strategies
is what we do best. Acting as a sounding board for various issues facing our clients
business by offering our expert advice through collective experience of our partners and
industry professionals. Our clients can remain focused on important business
management issues, whilst planning for the future growth of their business.
look forward to have the draft NDA & MOU and your valuable viewpoint so that we can
prepare the road plan together and start working together.
Awaiting your reply,
Nortech Trinity has a well-connected supply chain connectivity and process in the field of
commodity trading with a focus on Metals & Minerals, Energy Products, Chemicals. Pharma and Food
Industry. Our diversified operations comprise around 50 mining and metallurgical, oil production,
mud chemicals and agricultural assets. Nortech Trinity has a well-recognized industrial and
marketing activities with a well-supported global network to serve our clients at best.
We trade in and distribute physical commodities sourced from third party producers as well as our
own production. We also provide, processing, storage, logistics and other services to commodity
producers and consumers.
Nortech Trinity India Private Limited intend to achieve growth objectives by adopting the
following strategies:
CONFIDENTIALITY INFORMATION AND DISCLAIMER: This e-mail message may contain confidential, proprietary or legally
privileged information. If you are not the original intended recipient and have erroneously received this message, please delete it
immediately and notify the sender. You are hereby, notified that any misuse, copying, or dissemination of the information contained
in the e-mail in any manner whatsoever is strictly prohibited.