VISAKHAPATNAM: Close on the heels of the state government’s plans to develop Bhavanapadu Port, the AP government is now likely to expedite the process of converting the earlier planned captive port into a commercial port at Kakinada in East Godavari district. With a petrochemical complex promised by the central government in the Vizag-Kakinada region at an estimated investment of around Rs 32,000 crore, sources said the commercial port at Kakinada may also include development of an LNG terminal.
According to the sources, the commercial port is expected to be developed at Kona Village of Thondangi Mandal in East Godavari district and the public hearing for the project is expected to be held in December this year. The investment for the development of the commercial port is expected to be around Rs 2,000 crore with three berths likely to be developed in the first phase followed by four more berths in the second phase.
The AP government had earlier granted permission for constructing a captive port about eight years ago to handle Kakinada SEZ cargo, but subsequently has decided to develop a commercial port through the Swiss Challenge approach following a proposal by KSEZ. Kakinada already has two ports including the Kakinada Sea Ports Limited and Kakinada Anchorage Port. “The process of developing a commercial port at Kakinada is at an advanced stage and the notification for the public hearing may be issued soon,” a senior East Godavari district administration official said. Sources said the port will be developed on an area of around 1,800 acres.
The major cargo for the proposed commercial port is expected from KSEZ as well as the proposed petrochemical complex in the Vizag-Kakinada region. Also, with East Godavari district being a hub for aquaculture, the port is likely to cater to seafood exports once it is developed. “Consultants from the petroleum ministry have visited the proposed site of around 2,500 acres at Kakinada SEZ, but an official announcement is yet to be made,” said an industry source. The petrochemical complex is likely to be a joint venture of HPCL and GAIL.
