Gangavaram Port aims to handle 8mn tn of cargo

The Gangavaram Port, which plans to commence cargo handling operations from December 2007, is aiming to handle about 8 million tonnes of cargo in the first year of operations.

"We have already awarded the break water construction, berths construction and other civil works to L&T, and the dredging works to Belgium-based Dredge International. These companies have started works recently," A Rama Raju, assistant vice-president, Gangavaram Port Limited, told Business Standard.

The port would award the equipment supply contract to a foreign company shortly, he added.

"We expect the work to complete before December 2007. In 2008-09, we expect to handle 8-10 million tonnes of cargo," he said.

Several companies like the Visakhapatnam Steel Plant, Hindustan Petroleum Corporation, National Thermal Power Corporation, Pharmacity, MMTC Limited, Jindal Aluminum Company, and others which are coming up at the proposed Andhra Pradesh special economic zone, were in negotiations to import/export their cargo though the new port, he added.

In the first phase, the company is constructing five berths, which can accommodate two lakh DWT (dead weight tonnage) vessels. The five berths would enable the port to handle up to 15 million tonnes a year.

"In the first phase, we are constructing 1,750 metre-long south break water, 800 metre-long northern break water, 300-length 21-metre draft entrance channel, besides five berths, stockyards and godowns. We are providing the latest and higher capacity handling equipment and all handling operations will be fully mechanised," he said.

The state government, which has an 11 per cent equity, had provided 2,800 acres of land and was creating infrastructure facilities like roads, while the remaining equity was with DVS Raju consortium. During the first phase, the company was investing Rs 1,850 crore, Raju said.