Coal news and updates

Vizag port to upgrade its iron ore handling capacity on DBFOT basis

December 13: The Ministry of Shipping, Government of India, has accorded approval upgradation of existing iron ore handling capacity at Vizag port by 23 million tons per annum on Design, Build, Finance, Operate, Transfer (DBFOT) basis at a cost of Rs 845.41 crore, an official said.

"The Government had accorded its approval for implementation of the project - Upgradation of the existing facility at outer harbour and creation of new facility at inner harbor for handling iron ore on DBFOT Basis - at Visakhapatnam Port," the official said.

The Project will have a capacity of 23 million tons per annum to cater to 200,000 Dead Weight Tonnage (DWT) carriers at outer harbour and upto 65000 DWT carriers at inner harbour.

The project will be financed by the Concessionaire, the official added.

It is envisaged to develop this facility in two phases, the official said. In Phase I, the upgradation of the existing mechanized iron ore handling facility will be done at outer harbor and in Phase II, a new facility at West Quay-1 berth in inner harbour will be created.

The Concessionaire is required to take up Phase-I work at outer harbour immediately after award of concession. The Phase-II facility is envisaged to be taken up after attaining the threshold limit of handling 12.5 million tons at outer harbour or 2 million tons at inner harbour whichever is earlier.

However, there is no bar on the operator to commence the Phase-II facility before reaching the threshold limit, the official said, adding, the facility will mitigate dust pollution and also increase operational efficiency as the existing ore handling complex will be upgraded with latest equipment.