Visakhapatnam Port Trust (VPT) may find it difficult to achieve its planned capacity increase to 150 million tonne by 2020 as several port projects are facing delay.
The company planned to achieve this capacity expansion through an estimated investment of Rs 14,000 crore.
The port authority is facing implementation delay for three major projects with an investment of Rs 1,800 crore.
For instance, the port has found no bidder for West Quay 7 and West Quay 8 berths – estimated to cost Rs 390 crore. Following this, the port decided to take up the works on its own.
The cargoes are the WQ berths are bulk cargoes, gypsum, blast furnace slag, manganese and other types of ore.
Another major project – the modernisation of the ore handling plant at a cost of Rs 845 crore – has been awarded to a subsidiary of the Essar group, inviting sharp criticism from the unions and other sections.
In another setback, the port is facing delay in implementing the Rs 633 crore project to extend the existing container terminal because of lack of consensus on revenue share.
The Visakhapatnam Container Terminal Private Ltd – presently operating the terminal – and the port authority have not agreed on a revenue-sharing model for the project.
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