Visakhapatnam Port Trust will shortly seek offers from reputed consultants to go ahead with its plan to set up a satellite port near 17th century Dutch township of Bhimunipatnam.
The decision comes close on the heels of a report submitted by the Indian Maritime University. The university was engaged to conduct a pre-feasibility report on the proposal to construct a Greenfield fishing harbour and a satellite port side-by-side.
IMU conducted geo-physical and hydrological data analysis.
VPT, which owns Visakhapatnam Port, the second largest major port in the country after Kandla in handling cargo, is serious about constructing a satellite port at Mulakedu near Bhimunipatnam to meet its future needs.
Though it is on a modernisation-spree to handle 110 million tonnes by 2013, due to benchmarking established by the port over a period of time, many clients prefer to route their cargo through Visakhapatnam Port.
A preliminary estimate reveals that the construction of the Mulakedu project would involve an investment of Rs.2,000 crore. Hence, the project will be taken up under Public-Private Partnership mode. It is not yet clear whether VPT will opt for constructing the project like Ennore, which has become a corporation from day one.
Harbour relocation
If harbour relocation proposal gets the consent from the stakeholders, part of the funding is also likely from the State Government as well as the Ministry of Agriculture.
VPT owns 167 acres at Mulakedu, which it got in lieu of land it surrendered for expansion of the airport in the city. It may also get more land from the government as VPT enjoys a good reputation as a premier port.
Now the strategy is to divert some of the cargo to the new port so as to reduce the waiting time. Sources in the VPT told The Hindu that as they had their own land at Mulakedu which includes prime waterfront area, getting clearances for the project would not be a problem.
Shifting the fishing harbour from the city to the proposed site however has remained a ticklish issue as there is opposition to the move from the fishing community. Once they are convinced, shifting will not be a problem. The Naval authorities are keen that the harbour is relocated as they think that its location, close to the main harbour and naval base, could be a security threat.