Vizag port to construct WQ-6 berth

Visakhapatnam port has dropped the proposal of privatising the construction of WQ-6 berth in the port inner harbour, and instead has decided to take up the construction work with its own funds.

The shipping ministry has recently given its in-principle approval to the port to go ahead with the project.

It may be recalled that the port had decided to set up two captive berths "� WQ-6 and WQ-7 "� on build operate transfer (BOT) basis exclusively for aluminium companies.

In this regard, it had invited aluminium companies for taking up the project. However, the companies did not show any interest in the project and the port had to take up the construction of WQ-7 berth with its own funds. It spent about Rs 40 crore on the construction of WQ-7 berth, which will become operational in a couple of months.

But with the shipping ministry asking all the major ports in the country not to invest their own funds to set up new berths, the port again invited tenders from aluminium companies to set up WQ-6 berth.

Though a few companies including Vedanta Alumina, Utkal Alumina, L&T, and Hindlco evinced interest in the project, the proposal suffered a setback.

"These companies are far behind schedule to implement their proposed alumina refinery projects in Orissa. Without starting these projects, they cannot take up the captive berth construction project at Vizag port," M S Rao, deputy chairman, Vizag port, told Business Standard.

To avoid further delay, he said, the port management had therefore decided to take up the WQ-6 berth construction with its own funds.

"We have already approached the shipping ministry, and the ministry has given its in-principle approval for the construction of WQ-6 berth with our own funds," he said.

The construction of WQ-6 berth and erection of a mechanical handling system together involves an investment of around Rs 150 crore, Rao said, adding that the captive berth would be used exclusively for alumina exports.

He said that the port would construct the berth, and the alumina companies that use the berth would have to invest in installing the mechanical handling equipment.

"The construction of the berth requires around Rs 40 crore, which would be funded by the port through internal accruals," he said.