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i-maritime News Service

Fresh bidding likely for Vizag container terminal expansion - 2013-07-13

The Rs 633-crore expansion project taken up at the Visakhapatnam container terminal has made no headway. This is owing to the fact that Visakhapatnam Port Trust (VPT) and Visakhapatnam Container Terminal Pvt Ltd (VCTPL) have not reached any agreement on revenue-sharing. Fresh price bids may be called for to settle the issue.
The port had called for bids to extend the container terminal and add capacity of 0.54 million TEUs in addition to the existing 0.40 million TEUs. Along with VCTPL, which is operating the existing terminal, six other companies: Simplex Infra, NEC, Gangavaram Port, Adani Group, Welspun and Leighton and Gammon India were qualified to bid. But finally only VCTPL submitted the bid and bagged the project.
However, there were differences between VPT and VCTPL over revenue-sharing. The latter offered a maximum of 10 per cent of revenue but the port authorities insisted on 20-25 per cent. Since there has been no progress in the talks, VPT authorities have sought recourse to re-tendering.
According to G.V.L Satya Kumar, the officiating chairman of the port, fresh price bids will be invited from the earlier qualified six bidders as well as VCTPL to settle the issue. The plan is to extend the container terminal from the present 450 metres to 850 metres.
Currently, VCTPL is handling 2,47,133 TEUs per annum against the capacity of 0.40 million TEUs.
Source: The Hindu Business Line