Container terminal set for expansion

Tenders for the work likely to be finalised by August. Originally the project was estimated to cost Rs.633.11 crore.

A container ship heading towards Visakha Container Terminal in Visakhapatnam. PHOTO: C.V. SUBRAHMANYAM

Visakha Container Terminal Pvt. Ltd (VCTPL) will finalise a consultant of international repute for designing layout and construction of a world-class berth as part of extension of the existing container terminal.

VCTPL CEO Sushil Mulchandani has told The Hindu that in all probability they will finalise the tenders by August and launch construction either by year-end or early January, 2016. The new project will be operational in mid-2017 with a capacity to handle 0.54 million TEU taking VCTPL’s total capacity to 1.2 million TEU.

VCTPL, which developed the existing all-weather terminal with a deep draught after signing a concession agreement with Visakhapatnam Port Trust for 30 years on June 26, 2003, will spend around Rs.820 crore on the expansion project. Originally the project was estimated to cost Rs.633.11 crore.

After it bagged the expansion project, VCTPL, a joint venture of Dubai Port World and United Liner Agencies, the BOT operator signed concession agreement with VPT on December 17, 2014. Port Chairman M.T. Krishna Babu has said Visakhapatnam will be developed as a container hub on the East Coast on the models of Singapore.

16 per cent growth VCTPL registered a growth of 16 per cent in containers during 2014-15 notwithstanding economy slowdown and Hudhud which battered the coast. It is expecting an increase by 15 to 18 per cent during current fiscal.

With a huge hinterland of 700 km spreading over Odisha, Chhattisgarh and parts of Madhya Pradesh and Jharkhand and good connectivity, there is bright scope for increasing the container cargo particularly seafood, pharma products, alumina, steel and project cargo to the Middle East, Africa and Far East. Container service is available to Colombo, Jabel Ali near Dubai and Sohar in Oman.

Mr. Mulchandani has said with their success in driving a paradigm shift in container handling due to its convenience and cost factor, they emerged as a symbol of an outstanding Public–Private-Partnership project.

GRANDIOSE PLAN

#Construction to be taken up either by year-end or early January, 2016

#The new project to be operational in mid-2017

#It will have a capacity to handle 0.54 million TEU taking VCTPL total capacity to 1.2 million TEU

Quote

Visakhapatnam will be developed as a container hub on the lines of Singapore

M.T. Krishna Babu

VPT Chairman