Vizag port to appoint engg consultant

Upgradation of iron ore handling facility

The Visakhapatnam port has decided to appoint a reputed firm as engineering consultant to take up the upgradation of the iron ore handling facility to accommodate 2 lakh DWT (deadweight tonnage) vessels on the outer harbour.

The consultancy firm is expected to take up detailed engineering services under phase I and implementation of construction under phase II, Vizag port sources told Business Standard.

"We are going to call for tenders to select an engineering consultant soon," they said.

Howe India Private Limited has already prepared a detailed feasibility report for modernisation of the Iron Ore Handling Complex (OHC). As per its estimation, the project cost would be around Rs 200 crore.

After the upgradation, OHC capacity would increase to 150 lakh tonnes from the present 120 lakh tonnes per annum. At the same time, vessels up to 2 lakh DWT can be accommodated at the ore berth on the outer harbour. At present, it can accommodate vessels up to 1.5 lakh DWT.

The Japan Bank for International Cooperation (JBIC) has agreed to finance the project at a lower interest rate. An agreement between the bank and the Centre was also concluded recently.

The approximate fee for the phase I engineering consultancy would be around Rs 7.93 crore. JBIC will provide 85 per cent of the project cost by way of loan and the balance amount is proposed to be met from port funds.