GANGAVARAM PORT

PROJECT
VISAKHAPATNAM, ANDHRA PRADESH

AANCHAL JADHAV URBAN DESIGN POLICY AND IMPLEMEMTATION |

MARCH. 2ND SEM 1ST YEAR SCHOOL OF PLANNING AND ARCHITECTURE, UOM, MYSORE
INTRODUCTION

 Located on the East Coast of India in the State of

Andhra Pradesh, about 15 kms south of
Visakhapatnam Port, Gangavaram Port has been
developed as all weather, multipurpose, deep water
port with a depth of up to 21 meters, capable of
handling Super Cape size vessels of up to 200,000
DWT.
 The master plan has a provision for 29 berths with a
capacity of 200 MTPA to be developed in three phases
over 15-20 years.
 In Phase I, five berths have been constructed with an
estimated handling capacity of 35 MTPA. One berth is
dedicated to iron ore, the second berth is for handling
coal and there are three multi-purpose berths to
handle containers and other cargo. The port has a total
land area of 2800 acres for port facilities
development.
 The port also has good connectivity to the national
railway system with its own independent railway
siding, while a four-lane road from the port connects
to National Highway 5, the Kolkata-Chennai arm of
the Golden Quadrilateral.
ABOUT THE PORT

 Gangavaram Port concession was awarded to Mr. DVS Raju led consortium through an international
bidding process. The Concession Agreement was signed in August, 2003.
 Gangavaram Port has the unique distinction of being one of the few Greenfield port projects in India
which has been implemented on schedule. Construction at the site commenced in December 2005 and
the Port commenced trial operations in August 2008.
 Gangavaram Port has been developed as an all weather, multipurpose port with water depth upto 21
meters, making it the deepest and capable of handling fully laden Super Cape size vessels of upto
200,000 DWT. Gangavaram Port, with its deep draft berths and efficient operations has become the
gateway port for a hinterland spread over 8 states across Eastern, Western, Southern and Central India.
Its ability to handle larger vessels efficiently has resulted in substantial savings to trade and port users.
Gangavaram Port provides efficient cargo handling services for a variety of bulk and break bulk cargo
groups including Coal, Iron Ore, Fertilizer, Limestone, Bauxite, Raw Sugar, Project Cargo, Alumina,
Steel products etc.
 The Port, its related facilities and material handling system are among the most advanced in Asia and
meet the highest standards in terms of pollution prevention and safety.
 Vision: To be the leading port in South East Asia by maintaining its position as one of the deepest and
most modern port in the region, providing economic and efficient logistics solution to customers
resulting from ultramodern infrastructure and efficient and environment friendly operations.
PROJECT INFORMATION

 Project Name: Gangavaram Port Project - Phase I

 Project Brief: The port has been developed as an all weather port with water depth upto 21
meters,handling vessels of upto 200,000 DWT.
 Sector: Transport
 Sub-Sector: Ports (excluding captive)
 Project Capacity: 100.0 MTPA (Metric Ton Per Annum)
 Location The geographical location of the project: Andhra Pradesh
 Type of PPP: Build-Own-Operate-Transfer (BOOT)
 Project Status: Operation and Maintenance Stage
 Concession Duration (In Months): 360
 Bid Parameter Criteria adopted for award of project: Revenue Share
 Government/Non Government: Government
 Project Authority: Department of Ports, Andhra Pradesh
PROJECT TIMELINE

 Concession Agreement Signing Date: 07-Aug-2003

 Financial Closure Date:16-Dec-2005
 Appointed Date: Not Available
 Construction Completion Date (as per Concession Agreement): 31-Mar-2008
 Construction Completion Date (Actual):17-Apr-2009
 Date to Start of Commercial Operation (as per Concession Agreement): 31-Mar-2008
 Date to Start of Commercial Operation (Actual):17-Apr-2009
 Concession End Date (as per Concession Agreement): 06-Aug-2033
 Concession End Date (Actual): Not Available
 Project Cost in Rs Crore: 1,696.00
CONNECTIVITY

RAIL CONNECTIVITY
 Railway connectivity has been established connecting the port to the main broad gauge national network
of "Chennai-Visakhapatnam-Howrah" rail corridor. The Port has its own independent "Railway Sidings"
with main salient features as follows
 R&D yards  (02 No's) with 14 railway sidings for receipt and dispatch of rakes.
 Dedicated Coal and Iron Ore sidings for mechanized loading and unloading operations
 Four in-motion weighbridges for weighment of rakes
 Five locomotives for shunting of rakes within the railway siding
ROAD CONNECTIVITY
 Road connectivity to the port has been provided by a 4 lane expressway of 3.8 kms connecting the port
with the National Highway No.5 (Chennai - Kolkata)
 Four weighbridges for weighment of trucks
INLAND SHIPPING
 Cargo unloading from larger vessels and loading into smaller vessels for coastal shipping.
 Cargo unloading from smaller vessels and loading into bigger vessels to save ocean freight for exports.
 STORAGE FACILITIES

Coal stockyard & Iron Ore stockyard Covered transit storage for bulk and
with storage capacity of more than 5 break bulk cargoes CCR
MMT & 1 MMT respectively

Radar Station Wagon Loader Wagon Tippler

Closed Conveyor Systems

PPP STRUCTURE OF THE PROJECT

 After conducting a global bid process, the consortium led by Mr. D.V.S. Raju was selected to develop the port
on BOOT basis in 2002. Under the concession agreement, the Government of Andhra Pradesh, through its
Transport, Roads and Building Department (TR&B), provided the private sector the right to the waterfront
and concession to build-own-operate-transfer the port project. The private sector is responsible for preparing a
comprehensive long-term master plan for the port, design the facility, arrange for the requisite finance, build
the facility, own the assets that are constructed and operate the assets till the end of the concession period. The
initial concession period is for 30 years (extendable by additional two periods of 10 year each).
 The Government also provided land to the Project. A portion of the land was acquired by Andhra Pradesh
Industrial Infrastructure Corporation Limited, a government of AP enterprise, and provided to the project in
lieu of equity stake of 11% in the SPV. The remaining land was purchased by the SPV on direct payment.
 The SPV named Gangavaram Port Limited (GPL) was formed with Mr. Raju and associates owning a 51%
stake with US-based private equity firm - Warburg Pincus holding 28% and the Andhra Pradesh Infrastructure
Investment Company (APIIC) holding 11% in the consortium.
CURRENT STATUS
 The port is operational since August, 2008 and has handled more than 8 MT of cargo as at August 2009,
including cargo such as Coking Coal, Steam Coal, Iron Ore, Limestone, Bauxite, Urea, Slag, Steel, Raw
Sugar, Scrap and Project Cargo.
 The port has handled the largest coal vessel to call at Indian Ports, Capesize vessel MV Ocean Dragon
(151,049 DWT) and has achieved high cargo discharge rates. (71,808 tonnes per day).
FINANCING INFORMATION

 The total project cost is estimated at Rs. 1,696 crores. No VGF has been provided to the project. A consortium of 13 Banks led
by SBI Capital Markets arranged term senior & subordinate loans of Rs. 1,170 crores for the phase I development. The
transaction won the award of being the largest transaction in India of a merchant greenfield port financing on non-recourse basis
at a leveraging of 69:31.
 The future receivables of port usage will be used by GPL to repay the loans which have been raised at an attractive rate of under
9% p.a. for the 14 year facility.
PARTICULARS 
 Project IRR (Post-tax) 22%
 Equity IRR 30%
 Average DSCR 2.2
 Debt Equity Ratio 69:31

DELIVERY

 The project was successfully commissioned in August 2008. The port is currently operational and handling substantial vessels
and cargo.
 THANK YOU

SOURCES
Port Gangavaram - About Port
PPP Toolkit (pppinindia.gov.in)
View Project - Department of Economic Affairs - InfrastructureIndia.gov.in (pppinindia.gov.in)