Five stevedoring groups have entered a bidding war over the third container terminal at Port Botany.
Sydney Ports Corporation has announced that five stevedoring companies have been invited to tender to operate the third container terminal at Port Botany.
The company’s CEO Grant Gilfillan said the invitation was the second part of a two-stage process for choosing the terminal operator for the Port Botany expansion project.
A total of 13 groups expressed interest in operating the terminal, responding to the call for expressions of interest due on September 1.
“The healthy response indicates there is strong industry confidence in the long-term commercial viability of Sydney’s container port,” Mr Gilfillan said.
The company asked the applicants to provide information concerning their financial and resource capacity, container terminal expertise and experience, as well as capacity to resource and manage the new terminal.
Ports Minister Joe Tripodi said bids would entail fixed and variable rental elements, and a level of investment and intended work volumes.
Mr Gilfillan said the shortlisted groups included domestic and international operators, without revealing their names.
“We regard the process as commercially confidential and will not be announcing the names of those who have been invited to tender.
“We expect the stevedore to be chosen by mid-2009, with the first berths available for trade from 2012,” he said.
It is speculated among the contenders were Patrick, DP World, Hong Kong-based Hutchison Port Holdings and the Singapore Ports Authority. Former Patrick chief Chris Corrigan was also reported to have expressed interest.
It is expected the selected operator will inject around $350 million into new facilities, with initial expenditure on gantries of about $150 million.