DP World JV to build Indian container terminal
The 500,000 TEU facility will be located at Port of Visakhapatnam
Dubai's DP World and JM Baxi Group have been selected to build and operate a new 500,000 TEU container terminal in the Indian Port of Visakhapatnam.
The joint venture received approval from the Visakhapatnam Port Trust after the consortium agreed to increase its revenue share offer from 10% to 11.04%, a port official told Logistics News.
The consortium, already responsible for the day-to-day running of Visakhapatnam Container Terminal (VCT), the port’s first box facility, was the lone bidder for the project, which was offered on a build-operate-transfer basis for a period of 30 years. The new terminal will be built at the site of the existing terminal, which will be extended to around 850m.
“With a total continuous berth length of about 850m and water depth of approximately 17m, Visakha Container Terminal (VCT) will be able to accommodate bigger ships,” the official added.
Last month, Essar Vizag Terminals, a subsidiary of Indian terminal operator Essar Ports, also entered into a 30-year concessionary agreement with the Visakhapatnam Port Trust for three new iron ore berths at the Indian port.
During the first eight months of fiscal year 2013-14, VCT handled approximately 175,000 TEU compared to the 166,000 TEU handled in the corresponding period a year earlier.