Cochin Port Offers 140 Acres On Lease To Raise Over Rs 5 Billion
PORTS & SHIPPING

Cochin Port Offers 140 Acres On Lease To Raise Over Rs 5 Billion

State-owned Cochin Port Authority has launched a major land monetisation initiative, offering nearly 140 acres in two parcels on long-term lease for commercial and hospitality development. The move is expected to generate more than Rs 5 billion in upfront revenue, according to multiple sources.

On 17 November, the port issued a tender to lease 22.38 hectares (55.30 acres) located on the southern side of NH-966B, the road linking Willingdon Island to NH-66 at Kundannoor Junction. A second tender for an additional 85-acre parcel will be released shortly, a government official confirmed.

The tender permits development of a wide range of commercial and public-use facilities, including hotels, convention centres, office complexes, stadiums, educational institutions, hospitals and public spaces. The port has set a reserve annual lease rent of Rs 127.03 million per hectare (excluding GST) for the 22.38-hectare plot.

The lease will run for an initial 30 years, with an option to renew for a further 30 years. Bidders must quote above the reserve price, with the highest bid forming the floor for a subsequent e-auction. Final allocation will go to the top bidder.

Officials said Cochin Port Authority is monetising land that cannot be used for port-related activities. Interest from at least three to four private players prompted the decision to issue the tenders.

Asset monetisation via the Public-Private Partnership (PPP) route has been slow at Cochin Port due to its cargo mix. Around 60 per cent of the port’s traffic comprises oil cargo handled directly by state-run oil marketing companies, while 30 per cent is container cargo managed at the DP World-operated International Container Transhipment Terminal. The remaining 10 per cent is mainly cement cargo.

“The berths handling oil cargo cannot be privatised as they are operated by the oil companies themselves. Privatisation would significantly reduce the port authority’s revenues. Meanwhile, the limited share of non-oil and non-container cargo offers little incentive for private operators,” the official said, adding that PPP-based monetisation is unlikely to gain traction at Cochin Port.

The land-lease initiative is therefore seen as a more viable route for the port to unlock value from its non-operational land holdings.

State-owned Cochin Port Authority has launched a major land monetisation initiative, offering nearly 140 acres in two parcels on long-term lease for commercial and hospitality development. The move is expected to generate more than Rs 5 billion in upfront revenue, according to multiple sources. On 17 November, the port issued a tender to lease 22.38 hectares (55.30 acres) located on the southern side of NH-966B, the road linking Willingdon Island to NH-66 at Kundannoor Junction. A second tender for an additional 85-acre parcel will be released shortly, a government official confirmed. The tender permits development of a wide range of commercial and public-use facilities, including hotels, convention centres, office complexes, stadiums, educational institutions, hospitals and public spaces. The port has set a reserve annual lease rent of Rs 127.03 million per hectare (excluding GST) for the 22.38-hectare plot. The lease will run for an initial 30 years, with an option to renew for a further 30 years. Bidders must quote above the reserve price, with the highest bid forming the floor for a subsequent e-auction. Final allocation will go to the top bidder. Officials said Cochin Port Authority is monetising land that cannot be used for port-related activities. Interest from at least three to four private players prompted the decision to issue the tenders. Asset monetisation via the Public-Private Partnership (PPP) route has been slow at Cochin Port due to its cargo mix. Around 60 per cent of the port’s traffic comprises oil cargo handled directly by state-run oil marketing companies, while 30 per cent is container cargo managed at the DP World-operated International Container Transhipment Terminal. The remaining 10 per cent is mainly cement cargo. “The berths handling oil cargo cannot be privatised as they are operated by the oil companies themselves. Privatisation would significantly reduce the port authority’s revenues. Meanwhile, the limited share of non-oil and non-container cargo offers little incentive for private operators,” the official said, adding that PPP-based monetisation is unlikely to gain traction at Cochin Port. The land-lease initiative is therefore seen as a more viable route for the port to unlock value from its non-operational land holdings.

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