JIS News

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  • The deadline for the submission of bids for the privitisation of the Kingston Container Terminal (KCT) has been extended to July 3.
  • The extension came as a result of a request for more time by one of the shortlisted entities bidding for the project.
  • Five bidders expressed an interest in the privatisation of the KCT, of which three were prequalified and recommended to proceed to the next stage.

The deadline for the submission of bids for the privitisation of the Kingston Container Terminal (KCT) has been extended to July 3.

Minister of Transport, Works and Housing, Dr. the Hon. Omar Davies, said the extension came as a result of a request for more time by one of the shortlisted entities bidding for the project. The original date for the submission of bids was May 22.

Addressing the 2014/2015 Budget Debate in the House of Representative on May 14, Dr. Davies informed that five bidders expressed an interest in the privatisation of the KCT, of which three were prequalified and recommended to proceed to the next stage.

These were Ports of Singapore International; Dubai Ports; and Terminal Link Consortium consisting of Terminal Link, CMA, CGM, and China Merchant Holdings International (CMHI).

He outlined that the bidding stage of the KCT Public Private Partnership Transaction began on January 16, 2014 and saw the issuing of the Confidential Information Memorandum (CIM) and the Request for Proposals (RFP) to the three pre-qualified bidders. The draft Concession Agreement was subsequently issued on February 14.

Dr. Davies noted that as part of their due diligence, in preparation for the completion and submission of bids, site visits by the three bidders were facilitated in February and March 2014. Following this, the request for the deadline extension was made and is being facilitated.

The Minister stated that by August/September 2014, the provisional preferred bidder should be selected, followed by contract award and signing by October/November 2014.

He emphasised that while the administration is committed to the privatisation process, “there will be no fire sale” either of the KCT or any of the other assets.

“We are not going to be offloading an asset such as the KCT simply to satisfy any demand,” Dr. Davies said.

He reminded that the KCT has long been regarded as a prime asset of the government, contributing significantly to the country’s Gross Domestic Product, and job creation

The Government began the process to privatise the KCT in the latter part of the 2012/2013 financial year with the engagement of an Enterprise Team to oversee the process.