Hyderabad: The owner of India’s deepest seaport, Gangavaram Port Ltd, has plans to add two more dedicated terminals to handle coal and container cargo, involving a total investment of Rs1,200 crore in the medium and long terms, said a top company official.
The all-weather multi-purpose greenfield port on the east coast, which started trial operations from September, now has five berths with a cargo handling capacity of some 35 million tonnes (mt) a year, chairman and managing director D.V.S. Raju said in an interview.
The port was built at a cost of Rs1,800 crore, comprising Rs530 crore of equity and Rs1,170 crore of debt, syndicated by a consortium of 11 banks. The D.V.S. Raju family owns 61% of the equity and global private equity firm Warburg Pincus Llc. holds 28%,. The Andhra Pradesh government holds 10.5% of the port through allocation of land for the port.
“While (the) new coal terminal being planned is estimated to cost some Rs600 crore, another container cargo terminal involves similar investments, taking the total capital investment to some Rs1,200 crore,” Raju said. However, he said the port management would prefer to wait till it completely utilizes the existing cargo handling capacity to take up work on additional berths.
“The master plan of the port involves building 29 berths altogether to handle some 200mt a year over the next 15 years or so. The medium-term plan is to have some 100mt a year capacity over the next 7-10 years,” said Raju.
While one of the five existing berths is dedicated to coal imports, another berth is committed to iron ore exports, and three berths handle general cargo that include fertilizer and foodgrains.
Gangavaram Port expects to report some Rs300 crore of revenue during the first full year of operations and post some 20% growth in revenue from then onwards every year. On providing an exit route to Warburg Pincus, Raju said: “They are long-term investors and are not keen on exiting the company and hence we are not looking at going public now.”