IFC to invest Rs 37 cr in Visakha Container

International Finance Corporation (IFC), the private sector lending arm of the World Bank, plans to invest around $8 million (Rs 36.8 crore) at Visakha Container Terminal Private Limited (VCTPL), a private container terminal operating in Visakhapatnam port in Andhra Pradesh.

The proposed investment will support the terminal operator's investment of $23.3 million (around Rs 107.18 crore) for upgrading existing port infrastructure, reducing turnaround time and costs and facilitating exports. With this investment, VCTPL’s handling capacity will expand from 150,000 TEU (twenty-foot equivalent unit) to 300,000 TEUs.

“As VCTPL handles greater volumes, it will ease capacity constraints at the currently congested Haldia and Kolkata ports on the east coast. The bulk of VCT’s future traffic originates from Chhatisgarh, Orissa and Andhra Pradesh,” according to an IFC release.

Visakha Container Terminal Private Limited is a 74:26 joint venture between United Liner Agencies Private Limited and Dubai Ports World FZE, a Dubai-based ports operator.

VCTPL was awarded a 30-year BOT concession to operate the terminal in 2002 after a bidding process. It commenced operations in June 2003. Since then, traffic has grown at around 20 per cent every year to the present monthly average of 8,000 TEUs, aggregating 98,000 TEUs in 2009-2010.

The investment will also increase the employment to 250 from 138 in 2009. VCTPL is expected to contribute $30 million to government payments over the life of the project.