JSW Infrastructure is developing and operating two cargo berths in the upcoming Ramayapatnam in AP

JSW Infrastructure Ltd, the port unit of Sajjan Jindal-led JSW Group, will sign a memorandum of understanding with the Andhra Pradesh government to develop and operate two berths at the southern state’s forthcoming Ramayapatnam port, a senior official said.

“We have reached an agreement with JSW Infrastructure for the two berths at Ramayapatnam Port and a Memorandum of Understanding will be signed shortly,” said Lt Cdr Ravindranath Reddy, Vice Chairman of the Andhra Pradesh Maritime Board (APMB).

JSW Infrastructure will develop and operate the berths for the proprietary use of the steel mill it is building in the Kadapa district.

JSW Infrastructure will have the rights to develop and operate the two berths at Ramayapatnam Port for an initial 30-year concession period, renewable twice for 10-year terms, Reddy said.

The royalty/revenue share for the two berths will be determined prior to the signing of the berth concession agreement, he added.

Ramayapatnam is one of four new ports identified by the state government to expand port capacity from 110 tons to 400 million tons (mt) by 2024. The other three ports are planned at Bhavanapadu, Machilipatnam and Kakinada SEZ.

The port of Ramayapatnam is being developed by the Andhra Pradesh Maritime Board on a landowner model in two phases, with the first phase costing Rs3,736 crore to handle 24.91 million tonnes (mt) of cargo per year from four berths. In the second phase, the port’s handling capacity will be expanded by 113.63 tons with an investment of Rs. 6,904 crore to increase the total capacity from 19 berths to 138.54 tons per year.

In July 2021, the AP Maritime Board awarded the engineering, procurement and construction (EPC) contract for a new port at Ramayapatnam in the Prakasam district of the state to a consortium of Aurobindo Realty and Infrastructure Pvt Ltd and Navayuga Engineering Co Ltd based in Hyderabad Rs2 .634.65 crores.

After the completion of the EPC work, the AP government plans to outsource cargo handling at Ramayapatnam, Bhavanapadu and Machilipatnam ports to specialists and cargo owners. I ET Infra

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