After several twists and turns, the Visakhapatnam Port is all set to sign the concession agreement on Wednesday with Visakha Container Terminal Private Ltd (VCTPL) for extending the existing container terminal with an investment of Rs.633 crore under Develop, Build, Fund, Operate and Transfer Mode.
The project, which was hanging fire because of differences over payment of gross revenue share, finally got the approval of the Board of Trustees following which the port had issued the Letter of Award exactly a year ago.
The VCTPL developed the existing all-weather terminal with an aim to convert Visakhapatnam as a gateway to container traffic on the East Coast a decade ago.
The VCTPL is a joint venture of DP World and United Liner Agencies of India (Private) Ltd, and one of the leading private investors to take up a project in the port under public-private-partnership scheme.
Following protracted negotiations and threat of backing out over traffic projections, the VCTPL clinched a deal for parting with 11.44 per cent of gross revenue share.
The concession agreement will be for 30-year term.
A senior official of Visakhapatnam Port told The Hindu that they were expecting completion of the project within the timeline as specified in the concession agreement.
The overall length of existing terminal will be extended from 451 metres by 395 metres.
The VCTPL handled 2.64 lakh twenty foot equivalent units (TEU) during 2013-14. The capacity of the terminal will go up by 5.4 lakh TEU once the extension work is completed.
After sorting out the issues with the VCTPL, the Visakhapatnam Port’s next task will be to launch work on upgrading Ore Handling Complex at an estimated cost of Rs.845 crore for which it had signed concession agreement a year ago with Vadinar Oil Terminal of Essar Group.
