Visakhapatnam Port Trust (VPT) mandated Rites to study the revenue sharing model for the proposed Rs 634-crore second container berth project at the port.
VPT roped in Rites to suggest a revenue sharing model because it is not satisfied with the revenue share offered by Visakha Container Terminal Private Limited (VCTPL), the only company which submitted financial bid for the project.
The port feels that the revenue offered by VCTPL is too low to be attractive. While seven companies like Adani Port, Navayuga Engineering, Gangavaram port, VCTPL, responded to the tender issued by the port authority, only VCTPL submitted the financial bid. But VCTPL reportedly justified the revenue stating it would take a long time to break even.
After receiving suggestion from Rites, the Vizag port authority would decide whether to award the project to VCTPL.
VCTPL is jointly promoted by Dubai Port world and United Liner Agencies of India and has been operating the container terminal at Vizag port from 2008.
The port has a handling capacity of 500,000 containers per year and this would increase to 540,000 containers upon completion of the second berth. In 2008-09, the company handled 80,000 container boxes, which increased to more than 250,000 boxes last fiscal.
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