VISAKHAPATNAM: A consortium of ArcelorMittal Nippon Steel India Ltd and Bothra Shipping Services Pvt Ltd has won a 30-year contract to mechanise and run two bulk cargo berths at State-owned Visakhapatnam Port, officials said, as the steel maker seeks to bolster its logistics chain to support manufacturing.
“The letter of award for the project was issued to ArcelorMittal Nippon Steel-Bothra Shipping Services consortium after the bid was approved by the board of Visakhapatnam Port Authority,” the port official said.
The ArcelorMittal Nippon Steel India-Bothra Shipping Services consortium had submitted the highest royalty of Rs 44 a ton for the project when the price bids were opened earlier this week.
Port tenders at major ports (owned by the Centre) are decided on the basis of royalty per ton – the entity willing to share the highest royalty per ton of cargo handled at the berth with the port authority wins the deal for 30 years.
The royalty payable will rise annually in tandem with the increase in wholesale price index (WPI), a measure of costs. The terminal operator will be free to set market rates under the new Major Port Authorities Act and the model concession agreement (MCA).
The project involves mechanising the 560 metres long West Quay berths 7 and 8 at the eastern coast port on Design, Build, Finance, Operate and Transfer basis with an investment of Rs 288.47 crores to handle 6.14 million tonnes (mt) of cargo a year based on yard capacity.
