Andhra Pradesh, which expects to emerge as an aviation hub in the light of the new Hyderabad international airport and centralised location, has also set its eyes on becoming numero uno in the country’s maritime trade.
“Given the projects in the pipeline, the state will be capable to handle over 900 million tonnes (mt) of cargo per annum in the next 10 years,” state Investment and Infrastructure Department secretary Manmohan Singh told Business Standard.
According to the official, the projected figure is a great leap forward in the domestic maritime sector considering the total installed cargo handling capacity in the country today is only 750 million tonnes per annum (mta).
Of the 14 non-major ports located on the state’s 978-km coastline, the government has so far offered eight to the private sector for development through public-private partnership (PPP).
These are Krishnapatnam, Gangavaram, Machilipatnam, Vadarevu, Nizampatnam, Meghavaram, Kakinada Deep Water Port and Kakinada special economic zone (SEZ). The total investment involved in the development of these ports is estimated to be Rs 46,500 crore.
Of these, two have already taken off and another is slated to go on stream next month. While the first phase of the Rs 10,000-crore Krishnapatnam port in Nellore district was inaugurated a fortnight ago, Gangavaram, another port that can handle mother ships, has geared up to start commercial operations during this month.
The expansion of the Kakinada deep water port at a cost of Rs 330 crore has also been completed and it has been operational since February.
With the completion of the third phase, the Krishnapatnam port will have a cargo capacity of 125 mta. Strategically located on the east coast, the port, being developed by Navayuga Engineering Company Ltd, is expected to be an important gateway to the Asia-Pacific.
Similarly, the greenfield Gangavaram port near Visakhapatnam would have a cargo capacity of 200 mta after the final phase is completed. Being developed by the DVS Raju-led consortium in the PPP mode, the port will have a total of 29 berths.
The first phase of the project, involving an investment of Rs 1,850 crore, comprises five berths with a capacity of 35 mta. Nine more berths would be added in phase II, estimated to cost Rs 2,600 crore. In the Rs 10,000-crore third and final phase, an additional 15 berths would be constructed.
The next in the pipeline is the Rs 8,000-crore Machilipatnam port in Krishna district, being developed by the Maytas Infra and Nagarjuna Construction Company-led consortium. The concession agreement was signed on April 4.
The first phase of the project, to be completed in three years, involves an investment of Rs 1,580 crore. With the completion of the final phase, the port will have a cargo capacity of 100 mta.
With regard to the Rs 16,800-crore Vadarevu and Nizampatnam Ports and the Industrial Corridor (Vanpic) project, in Prakasam district, a memorandum of understanding was signed by the state government and Ras Al Khaimah (RAK) on March 11.
RAK has identified Matrix Enport, promoted by former Matrix Labs chief Nimmagadda Prasad, as its joint venture partner. The Vanpic project involves the development of the two ports and a port-based industrial corridor. A special purpose vehicle, Vanpic Ports Private Ltd, has been incorporated to execute the project.
Special secretary of the AP infrastructure and investment department, KV Brahmananda Reddy, said lands required for the two ports had been identified and the land acquisition was under progress. Once completed, the two ports will have a capacity of 100 mta each.
Reddy said Meghavaram port in Srikakulam district and Kakinada SEZ were proposed to be captive ports, which would be handling 7 mta and 25 mta of cargo by 2011-12.
These apart, there were proposals to develop three more ports at Bhavanipadu and Kalingapatnam in Srikakulam district and Narsapur in West Godavari district. The feasibility study of the three ports, which are expected to handle about 200 mta, has been completed.
Explaining the reasons for the spurt in port development projects, Manmohan Singh said besides the PPP initiative, the state government was providing a number of incentives including laying of four-lane connectivity roads, exemption of stamp duty with regard to land acquisition on case-to-case basis and giving the freedom to the developers to fix their own charges.
The government was also helping the developers in getting clearances from various agencies.
