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Tuesday, January 07, 2014
DP World and JM Baxi Group to build new Visakhapatnam box facility
06 Jan 2014: 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 percent to 11.04 percent, 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 see extended to around 850 metres.
“With a total continuous berth length of about 850 metres and water depth of approximately 17 metres, 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.