International Finance Corp (IFC), a member of the World Bank group, will provide advisory services to Kerala for building a greenfield port at Vizhinjam, near state capital Thiruvananthapuram.
"We are partnering with Kerala to increase capacity of its port to enable more trade and create jobs," Lars Thunell, executive vice-president and chief executive of IFC, told reporters here Friday.
IFC will act as the principal advisor to Vizhinjam International Seaport Ltd (VISL) to structure, market and implement the project to attract investors through an open and competitive bidding process, the multilateral agency said.
This will help bring international managerial capabilities and best practices and safeguard the interests of all stakeholders, it added.
According to VISL chief executive Sanjeev Kaushik, partnership with private investors with relevant experience will bring immense efficiency for building the port.
"By partnering with IFC, we will not only benefit from its global experience in structuring sustainable public-private partnerships but also show the government's commitment to ensuring a transparent and competitive bidding process," Kaushik, also the secretary of Kerala's ports department, told reporters.
IFC's experience in helping state-owned enterprises build and upgrade port facilities includes public-private partnership projects in Brazil, Madagascar and Mauritius.
The Rs.5,348-crore Vizhinjam project, once completed, is expected to become a national hub for container traffic.
With the natural depth at 24 metres, one of the deepest in the world, the port needs no dredging. It will be located close to a busy international shipping route, and handle 4.1 million containers annually.