July 6, 2017 [OPIS] - Deemed feasible by the Port Authority of Veracruz in Mexico (API Veracruz), three proposals for a new fuel terminal at the port are now under consideration, with a winner expected to be announced on July 12, BnAmericas reported on Tuesday.
The three bidders in the 20-year-term tender are IENOVA subsidiary ESJ Renovable III, Avant Energy Midstream and a consortium led by Vitol. ESJ Renovable submitted the highest offer, 1 billion pesos, or $54.6 million; followed by Avant’s at 940 million pesos, or $51.4 million; and Vitol (and its subsidiary VTTI) at 190 million pesos, or $10.4 million.
The process of delivering the bids to the authority was part of a ceremony, broadcast live, on July 3.
The offer amounts, which do not include VAT, are initial fees to API Veracruz, exclusive of monthly fees that the bidders have proposed to pay for operation of the terminal. Those fee amounts were not made public.
The tender called for proposals to build a petroleum products terminal on an area of 123,000 square meters (about 1.324 million square feet), as well as products pipeline transfer capability to the port’s future logistics area. The tender also called for the construction of a public pier to handle the terminal’s cargo.
Expansion of the port (estimated to cost 30 billion pesos, or $1.6 billion) entails the construction of three other terminals: mineral bulk, bulk agricultural goods, and liquids or semi-liquid bulk agricultural derivatives. Tenders for those facilities have been launched.
API Veracruz has not yet provided the specific investments required for the construction of each of the four terminals, BnAmericas said, but according to Mexican authorities about 80% of the investments will come from the private sector, the news website said.
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