West Asia Maritime Ltd. Gets Coal Shipping Tender in Tamil Nadu under cloud of Uncertainty
Tamil Nadu: West Asia Maritime Ltd. (WAML) Owned by shipping magnate Abdul Qadir Rahman Buhari has been awarded yet another tender floated by the Tamil Nadu Electrical Board which, sources say, is tailor-made for Mr Buhari's self-unloading bulk carrier - the Gem of Ennore, which is intended to move thermal coal from Paradip in Orissa to Ennore, Tuticorin and Karaikal in Tamil Nadu.
- (1888PressRelease) August 30, 2012 - Sources claim that the TNEB's fresh tender appears to be designed in such a way that no other ship in India has the capacity to bid for it. The haulier is currently time-chartered by the Tamil Nadu State-owned Poompuhar Shipping Corporation that has been previously criticized by CAG for causing avoidable expenses of over 85 Crore, and its 10-year charter period ends Sept/Oct, 2012.
The five-year contract to WAML has been awarded due to the ships self unloading capability which sources confirm will become outdated in less than two years with the installation of two gantry cranes in Ennore for discharging vehicles. This new installation will make the Gem of Ennore's self-unloading capabilities redundant.
In a country that depends on its coasts for a wide variety of goods and sustenance, it's Appalling to observe errors in judgment in significant projects with massive financial Ramifications. One happens to wonder how a credible agency like PSCL, hired by TNEB for its coal procurement, can be so shortsighted while selecting a vendor.
Interestingly, The Gem of Ennore has been recently converted to suit the requirements of the charter. The ship has previously been involved in multiple shipping deals across the world that has also seen questions being raised about the integrity of the brand and its operations.
Industry sources claim that the rate for charter hire per day is Rs. 14.49 lakh for Gem of Ennore while other gearless panamax ships are hired at 5.35 lakhs. It is evident that the cost per ton to TNEB on the unloader is much higher than carrying the coal on gearless panamaxes.
Why not float a tender for a period of one year instead of tying it down for five years? Even if TNEB considers chartering a self un-loader, the period should be limited to one year only and reviewed for continuation in 2013, considering the fast-changing ground realities.
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