Vizag port to construct captive berths

To facilitate exports of companies setting up aluminum smelters in Orissa

With Orissa fast emerging as the preferred destination for aluminium companies, the Visakhapatnam Port is gearing up to meet the likely demand from these companies.

The port has decided to construct a couple of captive berths at its inner harbour to facilitate the export of aluminium powder of these companies.

Besides, it is also planning to develop mechanical handling and storage facilities at the inner harbour.

"Major industrial houses like Larsen & Toubro (L&T), Aditya Birla, Utkal Alumina and Sulakshmi Mines and Minerals are planning to set up aluminum smelters in Orissa. Keeping this development in mind, the Vizag port has decided to construct one or two captive berths," Y Jayanthi, deputy director (research and planning), Vizag port, told Business Standard.

The port is planning to invite private players to construct WQ-6 berth at the inner harbour exclusively for aluminum companies. It has called for expressions of interest from aluminium companies, Jayanthi said.

According to present estimates, the construction cost of the berth will be around Rs 40 crore. Apart from this, private bidders (aluminum companies) would have to invest another Rs 80-90 crore to create storage and mechanical handling facilities at the port area.

The Vizag port, however, plans to spend about Rs 27 crore to deepen the inner harbour channel and strengthen the three existing berths there during this fiscal.

"The port will spend Rs 12 crore to deepen the inner harbour channel from the existing 11.6 metres to 14 metres. Currently, only 40,000-45,000 DWT (dead weight tonnage) vessels enter the inner harbour. After deepening of the channel, bigger vessels up to 65,000 DWT can easily enter the inner harbour, which will reduce the freight charges," she said.

For strengthening of EQ-5, EQ-6 and EQ-7 berths, the port will spend another Rs 15-16 crore during this fiscal.

The National Aluminium Company (Nalco) has been exporting aluminum powder from the Vizag port for the last several years.

During 2004-05, Nalco exported more than 9 lakh tonnes of aluminum powder from the port. The company has invested about Rs 80 crore to set up mechanical handling and storage facilities at the port.