The port aims to increase its current cargo handling capacity from 63.2 million tonnes to 86 million tonnes by 2012-13. Two berth development projects – EQ 1 and 1A – would have a capacity of 14 million tonnes per annum (MTPA). These would handle steam and thermal coal. Concession agreements for both the projects would be signed shortly, he said.
Other berth development projects include WQ-7 and 8 and would handle dry bulk commodities. Bids have been invited by the port for the projects estimated to cost around Rs 410 crore. Besides these, installation of mechanised iron ore handling facilities, with a capacity of 8.98 MTPA and installation of fertiliser handling facilities, with a capacity of 5.21 MTPA are the major works expected to cost about Rs 494 crore.
The two dredging projects include deepening of outer harbour to cater to 2,00,000 DWT iron ore vessels for meeting the coal handling requirements and the deepening of inner harbour entrance channel. The two projects would approximately cost Rs 400 crore. The port is also taking measures to improve railroad connectivity and improve logistics by setting up a multi-model logistic hubs and developing a truck parking terminal. The cargoes handled by the port include crude oil and petroleum products, iron ore, coal, fertilisers, steel cargo and containers. However, it is expecting major growth for commodities like iron ore, crude oil and petroleum products, thermal coal, coking coal and steam coal. In recent times, government owned major ports have been facing stiff competition from private port players. The Vizag port has also seen some diversion of coking coal traffic and other bulk commodities on economic considerations to the neighbouring private ports like Krishnapatnam and Gangavaram port. One of the constraints affecting the port is being unable to develop stacking areas adjacent to cargo handling areas due to land acquisition issues and environmental considerations. The port plans to take up all the developmental projects on PPP mode only. However, it is not planning to raise any funds in the near
future. “If in the long term there is a change in government policy, a need may arise to raise the required funds for infrastructure development through public issue,” Satyakumar said.