Vizag port likely to drop plans to set up satellite port at Bhimili

Thought Vizag port's current handling capacity is about 80 million tonnes, this has remained underutilised as it gets 60-65 million tonne cargo a year

Visakhapatnam port is likely to drop the proposal to construct a satellite port at Bhimunipatnam, about 25 km from here.

The move comes in the wake of a non-feasibility report given by consulting company Aecom.

It was proposed to develop a satellite port in public-private partnership at Bhimili to reduce cargo congestion at Vizag port. Apart from constructing 4-5 berths, including break waters with a handling capacity of about 20 million tonnes a year, it was also proposed to shift the existing fishing harbour from Vizag port to Bhimili.

Aecom, which was appointed by the port to prepare a feasibility report, stated construction of the satellite port was not viable and advisable at the moment.

The initial estimates suggest around Rs 3,000 crore is required for the construction work, but the revenue on the investment would be negligible. Besides, chances of getting new and additional cargo too was minimal .

Vizag port itself has additional cargo handling capacities. Though its current handling capacity is about 80 million tonnes, it gets between 60 million tonne and 65 million tonne cargo a year. It is also investing more than Rs 12,000 crore in expanding the handling capacity to 120 million tonnes by 2016-17. In such a situation, setting up a satellite port by investing large amounts made no sense, it said.

The port has now asked Aecom to prepare a feasibility report on setting up a fishing harbour only. Vizag port wants to discontinue fishing harbour operations and use the exiting area for cargo operations. The move comes against the backdrop of shipping ministry asking ports to send proposals for increasing coastal shipping operations.