Visakhapatnam Port Trust to be the lead partner in Dugarajapatnam Port, Nellore District
The Cabinet Committee on Economic Affairs of the Government of India has decided to set up the second major port at Dugarajapatnam in SPSR Nellore District on May 09, 2013. This will be the second major port in Andhra Pradesh after the Visakhapatnam Port.
According to Visakhapatnam Port Trust (VPT) in-charge chairman Mr G V L Satyakumar, VPT will be the lead partner of the Dugarajapatnam Port. VPT could hold 89% equity with the remaining 11% being held by the AP state government. Four berths are being planned at the Dugarajapatnam Port in the initial phase with an investment of around Rs4,500 crore. The Dugarajapatnam Port will eventually see investments of Rs 9,500 crore over 30 years. RITES is currently doing the feasibility study and construction of the port will start after RITES submits the report and a special purpose vehicle is formed for the purpose.
According to Mr Satyakumar, the west coast of India dominates the port sector with 64 per cent of port traffic. However, the potential is from the eastern sector in coming years as this was unexplored till now. The entire mineral wealth was concentrated on the east coast and we would find the entire east coast booming with ports and traffic in the coming years. The east coast is seeing tremendous growth in last three to four years. The east coast is ideal as it offers a short and convenient route for traders who are keen to accelerate shipment of goods to China.