AP’s Ramayapatnam Port set for take-off in Dec

Hyderabad Ramayapatnam Port, a non-major Greenfield port being developed by the Andhra Pradesh government, is all set to start operations and welcome its first cargo ship in the month of December this year if everything goes as planned.

“We have put the construction works of the new port on a fast-track and are confident of completing the first berth, a bulk berth, by November this year. Our aim is to commence operations and welcome the first ship in December this year itself,” P Prathap, Managing Director, Ramayapatnam Port Development Corporation Limited (RPDCL), told Bizz Buzz.

The new port, which was in Prakasam district earlier, came under Nellore district in the district reorganisation exercise. It is in Ulavapadu Mandal of the Nellore district, which is also home to Krishnapatnam Port, a private port now owned by Adani Group.

Andhra Pradesh Chief Minister YS Jagan Mohan Reddy performed Bhoomi Pooja for the port on July 20, 2022. As per the new port’s detailed project report (DPR), the first phase of the project comprising four berths was scheduled to be completed within three years i.e. by June 2025. However, the construction timeline has been advanced in order to commence the operations early.

P Prathap, who is also Vice-Chairman and Managing Director of AP Trade Promotion Corporation Limited (APTPC), said that the first berth would be ready for operations within just 18 months after commencement of the construction, and the remaining three berthsof the first phase would be completed by August 2024.

“We completed the entire 1.3-km long breakwater structure on the north side. On the south side, nearly 2.1 kilometre of breakwater has been constructed and the remaining will be completed soon. Dredging and reclamation works of the first berth are already over,” the RPDCL MD said. The breakwater structures reduce sea waves in the port area.

A joint venture (JV) of Navyuga Engineering Company Limited (NECL), which developed Krishnapatnam Port and has experience in constructing port-related structures, and Aurobindo Reality & Infrastructure Private Ltd (ARIPL), is the engineering, procurement and construction (EPC) contractor for the first phase of the new port.

The Andhra Pradesh Marine Board (APMB), the AP government’s body, which is developing the three Greenfield ports including Ramayapatnam Port in the State, estimated the cost of the port’s first phase development at Rs3,558 crore with debt component (52 per cent) accounting for Rs2,079 crore. The AP government is contributing the remaining Rs1,479 crore (42%) in the form of equity. However, there is some cost escalation now as the central government has asked for covered coal sheds at the port to reduce dust.

"The total cost of the first phase project is now going to be around Rs4,000 crore as we are spending additional Rs400 crore on covered coal sheds. We have already submitted the revised cost estimates to the State government and are expecting approval soon,” he said.

Asked about the cargo handling capacity, he said post the completion of the first phase, the port will have a capacity to handle 34.04 million tonne per annum (MPTA) through its four berths. The port, which is coming up on 850.79 acre, has been designed to have a total of 16 berths with a cumulative handling capacity of 138.54 MPTA. IT will handle imports of coal, fertilizer, edible oil and containers and exports of granite blocks, cement, agriculture products, iron ore, among others.

“The port is closest one to Telangana. So, we expect exports like granite blocks from and imports to Telangana will pass through this port,” Prathap said.

The State government has spent Rs300 crore on rehabilitation and resettlement (R&R) of those affected by the project. The State government implemented R&R package before the foundation was laid. That was what Chief Minister YS Jagan Mohan Reddy wanted.

"The Chief Minister said he would perform Bhoomi Pooja only after the R&R package was implemented. We did the same. So, there is no opposition or protests from local people whatsoever. Everybody in the area is happy now,” Prathap said.

He further said: "Ramayapatnam Port will transform the backward region in Nellore district as it will generate 10,000 jobs and the State government has acquired 5,200 acres of land to develop port-based industries in the vicinity of the new port".

Port-led development

• 4 berths in Ramayapatnam Port 1st phase
• Revised construction cost at around Rs4,000 cr
• Phase-I handling capacity estimated at 34.04 MTPA
• State govt implemented R&R package in advance