October 12, 2008

Krishnapatnam Port phase I set to start in June 2008

BL reported that the first phase of the INR 10,000 crore Krishnapatnam Port is all set to begin commercial operations in June 2008, in just 18 months after the work began for the conversion of the existing minor port into a major one.

With the maritime trade witnessing significant growth and Chennai Port getting congested, Krishnapatnam Port is targeting to become a hub for containers, coal and petrochemicals.

Mr CV Rao CMD of Navayuga group said that "The port is going to be the biggest container terminal in India. It has generated interest among the industry, shipping companies and power firms. There are firm plans for generation of 12,000 MW of power in the vicinity. This includes 1,800 MW unit proposed by the group."

He added that the 5,000 acre port, with a debt equity ratio of 75:25, would start off with an initial cargo capacity of 20 million tonnes and would go up to 90 million tonnes four years later.

Mr Rao said that the Andhra Pradesh government has awarded the 50 year port project to Krishnapatnam Port Company on a build operate share transfer concession. He added that "This is going to be a shorter and better destination for iron exports from the Bellary Hospet region. The transportation to and from the port to the railway lifeline would be ensured. A 600 kilometer long railway line would be laid, covering a stretch of 114 kilometer to connect Obulavaripalem, giving access to the Chennai Gooty route of the railway network. In the short term, a 26 kilometer stretch would be completed to connect Venkatachalam on the Chennai Howrah line to coincide the launch of the port in June 2008."