Mundra Port to bid for Australia coal terminal rights

Mundra Port & Special Economic Zone Ltd. has shown interest in acquiring the operating rights of a major coal export terminal in northern Australia, and expects to submit a formal bid by April 8, a senior executive said Friday.


"The Australian Competition & Consumer Commission will give clearance after the consultative process for bidding," said Rajeeva Sinha, director at Mundra Port.


Mundra Port, a unit of Adani Enterprises Ltd., intends to bid for a 99-year lease for the Abbot Point Coal Terminal as part of the State of Queensland's competitive bidding process, Australia's competition regulator said on its website.


Mundra's Mr. Sinha declined to comment on the value of the lease.


The Abbot Point Coal Terminal is a key 21 million ton coal export facility located in northern Queensland, close to Adani's recently acquired coal mines in the Galilee basin. It is currently operated by Abbot Point Bulk Coal Pty. Ltd., a unit of Xstrata Coal Queensland Pty. Ltd.


The Abbot Point lease includes a 2.75-kilometer offshore coal loading jetty, ownership of an associated coal-loading plant and equipment, access to land-based rail loading and coal stockpiling facilities, the right to charge users for coal-handling facilities and maintenance.


Australia's government said it will continue to own the land, existing jetty and wharf infrastructure, and future expansion sites at the terminal.


Australia's Queensland state is raising funds from divesting its assets--including the Port of Brisbane, coal transport assets and forestry plantations--to help fund infrastructure programs.


If successful, the operating rights of the Abbot Point Coal Terminal will add to the investments made by diversified conglomerate Adani Group in coal and coal-related assets in Australia.


The rights will also facilitate the group's plans to evacuate large quantities of coal to feed power plants in India.


In 2009-10 about 17 million tons of coal was transported through Abbot Point, its website showed.


The terminal is being expanded to 50 million tons by the government-owned North Queensland Bulk Ports Corp. Last year, BHP Billiton Ltd. and Hancock Coal were selected to develop two new coal terminals at Abbot Point that will further expand the facility to 110 million tons.


Australia's competition commission said it started a review of Adani's proposed bid on March 3 and will announce its findings on April 7. It has asked for feedback by March 17.


Mundra Port had earlier bid to operate the Port of Brisbane but it was unsuccessful. It has already been selected as the preferred developer for a coal export terminal at Dudgeon Point with a minimum capacity of 30 million-60 million tons a year.


Mundra Port operates India's largest private port in the western state of Gujarat and expects to double its ports capacity to 158 million tons by 2013.


Adani Enterprises, which bought Linc Energy Ltd's coal mines for A$500 million, has said it will invest A$6.9 billion in Australia to develop the Galilee basin coal mines and related infrastructure in Queensland state.
(Source:http://en.portnews.ru)