Chabahar port: India scraps $29.8-m crane deal with China’s ZPMC
has culled a $29.8 million contract placed three years ago with Chinese port
crane maker Shanghai Zhenhua Heavy Industries Co Ltd (ZPMC) for buying four
so-called rail-mounted quay cranes (RMQCs) to be installed at Chabahar port in
Iran as the government hits back at Beijing with more economic restrictions in
the wake of the border dispute between the two countries.
Ports Global Ltd, the entity formed to develop and run the India-funded
Chabahar port, has floated a fresh tender to buy four new post Panamax RMQCs of
65 tonnes capacity each, a top government official said.
process virtually shuts out Chinese firms
the tender has not specifically barred Chinese crane makers such as ZPMC — the
world’s largest port crane maker — from participating, the government official
said the bidding process will follow the public procurement rules framed by the
government on July 23 that virtually shuts out Chinese firms.
new rules will apply for the crane procurement tender as the Chabahar port
project is funded by India.
Delay in construction
contract for the quay cranes ordered at ZPMC was scrapped as the crane maker
delayed construction on the gears.).
July 23 order on public procurement has “implications” on sourcing gears from
China. “The wordings of the order have been so carefully done, Chinese
suppliers are not pin-pointed. But, definitely, Chinese suppliers will not be
allowed to participate and they will not give any stuff for Chabahar port,” he
Best way forward
also decided to walk out of the ZPMC crane deal since this was seen as the best
way forward to procure RMQCs and expedite the project, without getting caught
in dollar financing issues emanating from the sanctions imposed by the US on
the Persian Gulf nation over its nuclear program.
the tender, the bidders have to quote their offer price for the cranes in Euros
or Indian rupees.
countries have so far not supported the US at least on the Iran sanctions
issue,” he said. The successful bidder will have to deliver the cranes within
16 months from the date of opening of LC.