10 cos express interest for Gangavaram project

Ch. Prashanth Reddy

HYDERABAD, Nov. 27

TEN firms, including L & T Ltd and Essar Investments Ltd, have submitted their expression of interest (EoI) for the development of greenfield Gangavaram port near Visakhapatnam.

The Andhra Pradesh Government had proposed to develop the port on commercial format with private sector participation to cater to the present and future needs of the region. It was proposed to be developed as a multi-purpose port for handling dry bulk, break bulk, container and liquid bulk.

Apart from the two, the companies which have submitted EoI for the port development are the Mumbai-based HAM Dredging and Marine Contractors, P & O Ports and Zoom Developers ( P ) Ltd, Adani Exports Ltd of Ahmedabad, Hypo Vereinbank, Kumar group of companies of Secunderabad, LKPPL - LITL joint venture of the Hyderabad-based Lanco group and a consortium of overseas companies led by Mr. D. V. S. Raju.

Shortlisting of these firms is currently under process, Mr. M. V. S. Prasad, Vice-Chairman and Managing Director of the A. P. Industrial Infrastructure Corporation (APIIC), the nodal agency for the project, told Business Line.

APIIC has appointed L & T - Ramboll Consulting Engineers Ltd of Chennai in association with Rogge Marine Consulting GMBH as the consultants for development of the Gangavaram port. The consultancy assignment encompasses identification of potential developers and all other related work up to financial closure.

The traffic potential for the port, located 15 km from Visakhapatnam airport and 5 km from national highway, was estimated at 17.57 million tonnes per annum (mtpa) by 2006, 35.71 mtpa by 2012 and 71.93 mtpa by 2020. The realisable traffic was estimated at 12.67 mtpa by 2006, 23.79 mtpa by 2012 and 50.51 mtpa by 2020.

Mr. Prasad said that the backup area required for the port was 2000 acres. Earlier, it was proposed for transfer of 1100 acres of land from Visakhapatnam Steel Plant to the State Government on land-to-land basis. The land was yet to be transferred to the State Government.