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Three major projects, being taken up in Visakhapatnam port with an investment of Rs 1,800 crore, are at the moment making not much headway for one reason or the other.
The bid for extension of container terminal, entailing an investment of Rs 633 crore, has attracted only one bidder - the Visakhapatnam Container Terminal Private Ltd - presently operating the terminal.
There is no agreement on the port authorities and VCTPL on the revenue-sharing and, as a result, the project is stuck.
The project is meant to add 0.54 milliion TEUs to the existing capacity of the terminal (0.40 million TEUs).
VCTPL, it is learnt, has only offered a maximum of 10 per cent revenue, but the port authorities insist on at least 20-25 per cent.
The authorites have decided to call for fresh bids from the earlier qualified six bidders as well as VCTPL to settle the issue. It may take some more time.
Presently, VCTPL is handling 2,47,000 TEUs a year. It is planned to extend the terminal to 850 metres from the present 450 metres.
No bidders
There are no bidders for West Quay 7 and West Quay 8 berths - estimated to cost Rs 390 crore - and the Visakhapatnam port has 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.
The third 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.
The United Port and Dock Employees’ Union in the port has alleged that the private companies are not coming forward to take up projects where there is no quick money to be made and the port is handing over profitable plants such as the OHC to private companies on a platter.
The union has urged the port to take up the project on its own as planned earlier.
Earlier, the port planned to take a loan from the Japan Bank for International Co-operation for the project, but there were hurdles to the proposal.
The port is planning to increase its capacity through various ongoing projects to 150 million tonnes by 2020 to compete with the neighbouring ports at an estimated investment of Rs 14,000 crore.
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