Visakhapatnam Port mandates mechanization in Rs 580 crore terminal deals

Visakhapatnam Port is accelerating its transition to a landlord-port model, awarding Rs 580 crore in terminal contracts that mandate mechanization to sustain a four-year run of cargo growth. Union Minister of Ports, Shipping and Waterways Sarbananda Sonowal laid foundation stones for the projects this week, alongside a new Rs 19 crore public promenade and an upgrade to the port’s sewage treatment facilities.

The primary commercial development involves three contracts to operate and maintain existing cargo terminals at the WQ-1, WQ-1RE, WQ-2, WQ-3, and EQ-3 berths. Under these agreements, private operators must install cranes and conveyors and implement environmental controls. The port expects these upgrades to secure cargo throughput and reach optimum capacity utilization across the berths.

The port handled a record 91.17 million metric tons of cargo in the 2025-26 fiscal year, representing 10% growth. Data from April 1 to October 31 shows this momentum continuing, with cargo volumes rising by 8.88% over the same period last year. The port currently has four Public-Private Partnership (PPP) projects worth Rs 800 crore under construction, all expected to be commissioned by 2027.

Environmental infrastructure is also expanding via an Rs 11 crore upgrade to the port’s sewage treatment plant, increasing capacity from 10 million to 15 million liters a day. This treated water is used for dust suppression and wetting roads at stockpile yards, aligning with the ministry’s Harit Sagar green port initiative.

Why it matters

For shipowners and charterers, the mandate for mechanization at the WQ and EQ berths is a direct attempt to cut vessel turnaround times. By shifting to a landlord-port model and requiring private operators to install high-speed cranes and conveyors, the port aims to lower logistics costs and improve berth productivity. This is critical for a facility that already offers a 16-meter draft, one of the deepest among India’s major ports.

The focus on environmental controls at the terminals, funded by the O&M contracts and the sewage plant upgrade, signals tighter operational requirements for bulk cargo handlers. Using treated water for dust suppression at stockpile yards suggests that environmental compliance is now a fixed overhead for operators moving dusty commodities through Visakhapatnam.

The port’s aggressive growth targets—aiming to exceed last year’s 10% increase—depend on these PPP projects coming online. With Rs 800 crore in additional projects due by 2027, the port is positioning itself as a primary gateway for larger vessels that require both deep water and fast discharge rates to be economically viable.

What to watch

The commissioning of the four PPP projects worth Rs 800 crore by 2027 will be the next major indicator of whether the port can maintain its growth trajectory and handle the increased throughput promised by the landlord-port transition.

Source: India Shipping News