Kakinada Gateway Port Holds Ground-Breaking Ceremony For Greenfield Kakinada Port
Kakinada Gateway Port Limited held the ground-breaking ceremony for the development of Greenfield commercial port near Kona village in East Godavari District, Andhra Pradesh. The foundation stone was laid by Hon’ble Chief Minister of Andhra Pradesh, Mr N. Chandra Babu Naidu.
Kakinada Gateway Port is promoted by Kakinada SEZ Limited, a subsidiary of GMR Infrastructure Limited, the flagship company of GMR Group.
Kakinada Gateway Port Limited had signed the Concession Agreement on 21st November 2018 with the Director of Ports, Kakinada, GoAP for development of the Port on DBFOT basis (Design, Build, Finance, Operate and Transfer). The concession has been awarded a concession fee of 2.7% of revenue share in the first 30 years of COD, 5.4% of revenue share in the years 31 to 40 and 10.8% revenue share in the years 41 to 50. The Port would be developed in an area of over 1811 acres owned by KSEZ. GoAP would lease 133 acres of seafront land for the period of concession.
The port is expected to handle Coal, General Cargo and Liquid Cargoes over the concession period. The estimated Project cost is ~ 3,000 Cr. The Port is expected to generate huge direct and indirect employment opportunities for the people of Thondangi Mandal in East Godavari district of the state.
The Port has large industrial land of Kakinada SEZ (~8,521 acres) in the backyard. Being strategically located on the Vizag Chennai Industrial Corridor, the Port and Industrial Park together are expected to become the Gateway to the East Coast of India. Kakinada SEZ had also signed an agreement with AP Gas Distribution Corporation in October 2018 for the supply of piped natural gas to industries in the Industrial Park, making it a highly attractive destination for gas dependent manufacturing industries. Kakinada SEZ would be the first Industrial Park on Eastern Coast of India that can provide piped Natural Gas supply to all its industrial units.
Given the assurance of GMR Group, abundant water, surplus power, assured gas supply Kakinada SEZ Industrial Park has been receiving enquiries from various international companies from countries like Korea, Taiwan and China. The companies are from sectors like Chemicals, Petrochemicals, Food processing, Solar Equipment Manufacturing, Toys & Textiles and Glass & Ceramics manufacturing. Institutions of repute such as Indian Institute of Foreign Trade and Indian Institute of Packaging are also being set up in 25 acres each at Kakinada SEZ.