Vizag port makes Rs 4,090cr plans

Integrated development plan to cater to port's growth & requirements over next decade

Visakhapatnam Port has chalked out an integrated development plan (IDP) with a projected investment of Rs 4,090 crore for the next decade.

"The traffic at the Vizag port is likely to touch 90 million tonnes by 2014 as compared to the present level of 48 million tonnes. This increase in demand is foreseen not only in terms of quantity but also in quality. Being a predominant bulk cargo port, there is an imminent need to address the issue of handling panamax vessels at the inner harbour berths and capsize vessels up to 2,00,000 dwt (dead weight tonnage) at the outer harbour. Also, there is a need to address the connectivity issues in order to provide seamless transportation of goods from or to the secondary and territory service area. Keeping this in mind, we have designed a comprehensive IDP," K Ratna Kishore, chairman of Visakhapatnam Port, told Business Standard.

"The total outlay for the proposed projects is about Rs 4,090 crore. While the central government will fund Rs 410 crore, around Rs 580 crore will be generated from internal resources. We are expecting to get Rs 1,500 crore through private sector participation and Rs1,600 crore through joint ventures with public sector undertakings/ministry of railways," Kishore said.

According to the IDP, the Vizag port has identified the need of increasing the width and depth of the inner harbour entrance channel and strengthening the inner harbour berths up to 14 metres draft, enlarging the outer harbour to handle 20,000 dwt vessels, construction of additional terminals and docks and logistics improvement.

Under phase-I, the entrance channel will be deepened from the existing (-) 10.7 metres to (-) 11.6 metres and turning the circle from the existing (-) 11.6 metres to (-)12 metres.

The estimated cost for the execution of phase-I is Rs 23 crore. The phase-II of this project , which is estimated to cost around Rs 140 crore, envisages deepening of the entrance channel to (-) 16 metres to facilitate the handling of panamax vessels of (-) 14 metres draft at the inner harbour berths.

The existing outer harbour can accommodate vessels up to 1,50,000 dwt. The upgradation of the facilities including modifying the layout of the east break-water and deepening of waterways to handle 2,00,000 dwt vessels will cost Rs 320 crore.

According to the IDP, the Vizag port is planning to upgrade the general cargo berth in the outer harbour to facilitate handling of 1,25,000 dwt coking coal vessels, construction of two inner harbour berths "" WQ-6 and WQ-8 "" for alumina exports. The port has proposed to revamp four berths "" EQ-1 to EQ-4 "" to accommodate the panamax vessels up to 14 metres draft with an outlay of Rs 250 crore. At the same time, the port has proposed to revamp the OR-1 and 0R-2 berths in the inner harbour to cater to the needs of the 14 metres draft tankers for handling petroleum products and chemical cargo.

"According to a recent study, the container traffic in Asia-Pacific region is expected to grow in leaps and bounds, requiring an additional 430 terminals by 2011. Keeping this is mind, we have proposed to extend the container terminal quay length to 1,150 metres from the existing 449 metres with an estimated investment of Rs120 crore," Ratna Kishore said.

As a part of the IDP, Vizag port will take up the development of the east dock in the inner harbour with three to four new berths to cater to the needs of 14 metres draft vessels with an investment of Rs 400 crore.

The port has also decided to develop an SPM (single point mooring berth) facility as a joint venture with the public sector refinery, HPCL, with an investment of Rs 250 crore.

The coking coal imports through the port are likely to increase to about 10 million tonnes, from the present level of six million tonnes.

In order to optimise the capacity of the existing berths, it is proposed to install the mechanised facilities at the general cargo berth (GCB) apart from two berths in the inner harbour. The IPD has also proposed to modernise the iron ore handling complex and the replacement of six cranes and two tugs with an investment of Rs 135 crore.

To provide connectivity to the special economic zone, the port also proposed a coastal road by constructing an underground tunnel beneath the channel and a coastal road by skirting the Dolphin hill with a total investment of Rs 500 crore.

To create additional railway connectivity to the port, Vizag port has proposed an integrated project with an estimated cost of Rs1,375 crore, of which Rs1,330 crore is proposed for funding by the ministry of railways.