Revenue sharing issue to delay Vizag Port extension

Differences over Internal Rate of Return calculations with concessionaire Visakha Container Terminal Private Limited are likely to delay Visakhapatnam Port Trust’s ambitious project to extend the container terminal at a cost of Rs.633.11 crore. VCTPL, which developed the container terminal in June, 2003 with DP World and United Liner Agencies as the joint venture partners, emerged successful bidder for taking up extension of the existing terminal sometime ago. Satya Kumar told The Hindu : “We are trying for a negotiated settlement and hopeful of a solution.” A senior official of VCTPL seeking anonymity said the projections made by VPT were ‘unrealistic.’ He said for the fourth terminal at Chennai, Essar had quoted less than five per cent. According to the Press Information Bureau website, the project will enhance container handling capacity of the port from 0.4 million TEU to one million TEU.