Visakha Container Terminal Private Ltd (VCTPL) – the lone firm which submitted price bid for Rs.633.11 crore expansion of existing terminal is likely to get the Letter of Award by month-end.

Global tenders

Sources in The Visakhapatnam Port Trust, which floated global tenders for the prestigious project in October, 2012, told The Hindu that after security clearance from Ministry of Home Affairs and Ministry of External Affairs, the letter would be issued subject to ‘satisfactory price offer.’ Environment clearance may come in three months.

VCTPL, a joint venture of United Liner Agency and DP World, wants to expand the existing all-weather terminal from 450 metres by 850 metres.

The VCTPL took up the terminal project under Public, Private Partnership mode in 2003.

The finalisation of bid for expansion project will depend on royalty offer to be made to VPT.

The Cabinet Committee on Economic Affairs (CCEA) cleared the project on Tuesday.

The project is being awarded under Design, Build, Finance, Operate and Transfer (DBFOT) basis.

Contrary to the expectations, ABG and IL&FS Maritime Infra Co. Ltd. did not submit bids. Of seven bidders, all were found qualified but only VCTPL submitted the price bid.

Concession agreement

As per the concession agreement, the successful bidder will be given 24 months to complete the expansion of the container terminal. The agreement will be for 30 years.

VCTPL, which is managing the terminal with a length of 450 metres, has been successful in transforming Visakhapatnam into a destination for container traffic. Existence of huge hinterland with good connectivity is a big plus point for VCTPL.

The company invested Rs.120 crore recently to acquire four rubber tyre gantry cranes and two rail mounted quay cranes and additional storage in an area of one hectare in the outer harbour of Visakhapatnam Port.

Once expanded, the terminal’s capacity will increase to one million twenty-foot equivalent units (TEU). VCTPL handled 2,47,133 TEU during 2012-13 registering a growth rate of 11.1 per cent despite slump in shipping industry.