Decks are almost cleared for launching of work on mechanised coal handling and modernisation of general cargo berth in the Outer Harbour of Visakhapatnam Port by the Sterlite Industries Ltd, the flagship company of London-based Vedanta Resources, and Leighton Constructions India Ltd.
“The consortium is awaiting final clearances after which it will launch work. All preparations for the project are over,” a senior official of Visakhapatnam Port told The Hindu .
Leighton Construction India Ltd is the Indian arm of global construction and mining major Leighton Group, which recently announced an investment of 26 per cent equity in the Vizag project. It has plans for investing Rs.220 crores in Vizag as well as construction of a multipurpose berth to handle clean cargo at Paradip port.
The Sterlite-Leighton consortium was awarded model concession agreement for an investment involving Rs.443 crores in June after a keen contest. The global tendering had attracted bids from five consortia and solo bidder. The award of contract got delayed due to variety of factors though the Request for Quotation was originally notified in December, 2007.
Government-controlled Visakhapatnam Port, which wants to overcome threat from neighbouring ports including Gangavaram and Kakinada is gearing up to have world-class facilities in two years.
The consortium will take 18 months to achieve a designed capacity to handle a coal cargo of 10.18 million tonnes a year. The work taken up under Design, Build, Finance, Operation and Transfer (DBFOT) Scheme will lead to handling of 2,00,000 DWT vessels.
Mechanisation of coal handling and upgradation of general cargo berth will lead to strengthening and deepening of berth and decongestion of port due to faster unloading of coal. It will also enable Visakhapatnam Port, the second largest port in the country after Kandla, to put a full-stop to criticism over pollution caused due to coal dust.
As part of modernisation and to handle projected cargo of 85 million tonnes by 2012, Visakhapatnam Port is also taking up third phase deepening of inner harbour entrance channel to enhance the draft to 14 metres.
