A consortium of four firms led by Singapore-based International Seaports Pte (ISP) has been selected to develop and manage the Kakinada port on an operation, maintenance, share and transfer (OMST) basis.
The decision was taken by the Union cabinet on Tuesday.
The other three companies in the consortium are: Larsen & Toubro Ltd, Steredoring Services of the US and Precious Shipping Public Co Ltd of Thailand.
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The port currently has three berths developed with a Rs 246.07 crore loan from the Asian Development Bank.
ISP will build the fourth berth and develop the port hinterland with an investment of Rs 287 crore.
As per the cabinet decision, the lease period will be 20 years. ISP will initially pass on 20 per cent of the gross revenue to the state government and 22 per cent in later years.
ISP, which had recently set up an India wing and is developing a port in Orissa, was selected out of four firms shortlisted after global bidding.
The bidders included Konsortium Perkapalan Berhad, which is headed by the Malaysian Prime's son.
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