A consortium comprising DP World and Mumbai-based J.M. Baxi Group has been selected to build and operate a new container terminal at Visakhapatnam, a major state-owned cargo hub on India’s southeastern coast.
Port sources said the 30-year concession contract was approved after the consortium agreed to hike its revenue share offer from 10 percent to 11.04 percent. An official announcement is expected shortly.
The joint venture group, which runs the first container-handling facility at Visakhapatnam Port, was the lone final bidder for the build-operate-transfer project covering an extension of the existing container berth by 395 meters (about 1,296 feet), which will help take overall quay length to 845 meters (2,772 feet).
The estimated annual capacity addition will be 500,000 20-foot-equivalent units.
“With a total contiguous berth length of about 850 meters and water depth of approximately 17 meters (about 56 feet), Visakha Container Terminal will be able to accommodate bigger ships,” a port official said.
According to current indications, the new facility is scheduled for completion in 2016.
VCT handled 175,000 TEUs from April through November, the first eight months of fiscal year 2013-14, compared with 166,000 TEUs a year earlier.
In other trade news, the Indian Ministry of Shipping said it plans to award four public-private-partnership port development contracts in the current fiscal year, which ends March 31, 2014, with a total investment of Rs. 17,630 crore (approximately $2.9 billion), adding an estimated capacity of 150 million tons a year.
The concessions that await final clearance from the Cabinet Committee on Economic Affairs include a fourth container terminal at Jawaharlal Nehru Port (Nhava Sheva) and new box terminals at the ports of Ennore, Kandla and Kolkata, as well as a multi-purpose facility at Mumbai Port.
“The ministry has so far conveyed approvals for 16 projects against a target of 30, with an investment of Rs. 4,200 crore (about $685 million),” an official statement said.