- Kolkata-based Ripley Group succeeds the tender for an electric green tug held by Gujarat-based Port Authority with the lowest bid price
- Netincon Marketing Pvt Ltd has partnered with Mandovi Drydocks (in Goa) to accomplish this project for a contract period of 15 years.
- The extended deployment period of 24 months for conventional tugs set by the Deendayal Port Authority has opened chances to new entrants
- Four major ports will each procure or hire at least two green tugs, with a total investment of ₹1,000 crore, following standard designs set by the Standing Specification Committee (SSC).
Netincon Marketing Pvt Ltd, part of the Ripley Group, emerged as the lowest bidder to supply and operate an electric tug under a 15-year charter in a tender floated by the Deendayal Port Authority, which operates the port at Kandla in Gujarat.
Competitive Bids for Green Tug Tender
Several companies submitted bids for the electric green tug tender, offering daily charter rates both above and below the reserve price of ₹6,70,000 set by the Deendayal Port Authority.
- San Marine India: ₹6,44,999 per day (3.73% lower)
- Knowledge Marine: ₹6,57,525 per day (1.86% lower)
- Underwater Services: ₹7,05,044 per day (5.23% higher)
- Polestar Maritime: ₹9,90,000 per day (47.76% higher)
Finally, Netincon Marketing secured the contract by placing ₹6,30,000 per day which is 5.97% lower than the reserve price. Netincon Marketing, a company engaged in stevedoring, shore handling, logistics, and ship ownership, partnered with Goa-based Mandovi Drydocks to construct the electric tug, a partnership formed before the price bid submission, as required under the tender conditions.
This exhibits that the newer entrants proposed bids closer to the reserve price, while more established players quoted significantly higher rates.
Industry View About Tug Tender
A shipping industry source reported that allowing new companies to penetrate the market and operate green tugs has the potential to significantly reduce daily charter hire rates. Moreover, extending the delivery timeline for new conventional tugs, from the usual six months to a longer period, as seen in Deendayal Port Authority’s green tug tender (24 months), could significantly reduce daily charter rates.
Currently, the shorter delivery window makes it difficult for newer or smaller players to participate in tenders for conventional tugs. “This allows only established operators to quote. They know new players won’t be able to meet the timeline, and with reduced competition, the day rates stay high,” the source added.
India’s Green Tug Transition Programme (GTTP)
Under the Green Tug Transition Programme (GTTP), Jawaharlal Nehru Port Authority and V O Chidambaranar Port Authority, both state-owned, have issued tenders to hire two and one electric green tug, respectively, for up to 15 years.
Understanding the significance of greener alternatives such as maintaining efficiency, cutting emissions, and adopting electric propulsion and alternative fuels, the Ministry of Ports, Shipping and Waterways launched standard operating procedures (SOPs) for the GTTP to shift fuel-based harbor tugs to zero-emission alternatives.
Based on standardized designs and specifications set by the Standing Specification Committee (SSC), major ports including Jawaharlal Nehru, Deendayal, Paradip, and V O Chidambaranar will each hire at least two green tugs, with an investment of approximately ₹1,000 crores.
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Source: ETInfra
