The Rs 633-crore expansion project taken up at the Visakhapatnam container terminal has made no headway.
There is no agreement between the Visakhapatnam Port Trust and the Visakhapatnam Container Terminal Private Ltd on revenue sharing and fresh price bids may be called to settle the issue, it is learnt.
The Visakhapatnam port called for bids to extend the container terminal and add the capacity of 0.54 million TEUs in addition to the existing capacity of 0.40 million TEUs.
Along with the VCTPL, which is operating the existing terminal, six other companies were found to have the qualifications for submitting the bids. But finally only the VCTPL submitted the bid and the project was awarded but there were differences between the VPT and the 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. No progress could be made in the talks and finally the 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 the VCTPL to settle the issue. It is envisaged to extend the container terminal from the present 450 metres to 850 metres.
Apart from the VCTPL, the six other companies which have qualified to submit bids are Simplex Infra, NEC, Gangavaram port, Adani group, Welspun & Leighton and Gammon India. Currently, the VCTPL is handling 2,47,133 TEUs per annum against the capacity of 0.40 million TEUs.