VPA looking for firm to operate & maintain new cruise terminal

Visakhapatnam Visakhapatnam Port Authority (VPA) has sought a request for proposal (RFP) from interested firms for operation and maintenance (O&M) of International Cruise Terminal (ICT).

“Following completion of the construction, the terminal is ready for inauguration. The terminal, one of the prestigious projects executed by us in the outer harbour will bring the much needed international passengers to this part of the world fetching a lot of forex and providing employment opportunities to the locals,” Dr. M Angamuthu, Chairman of VPA, told Bizz Buzz.

He said the region has been getting domestic passengers, but it is beautiful landscape and historic locations like the Buddhist sites and the picturesque beach and hill locations will certainly make Visakhapatnam an international tourism hub once the terminal starts receiving cruise liners.

The construction of the cruise terminal funded by the Government of India has cost about Rs 103 crore. Once it is commissioned, it will handle cruise liners with a capacity of 2,000 to 2500 passengers. The project was considered highly challenging as its progress was periodically monitored by Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal and Union Minister for Tourism G Kishan Reddy. The terminal will have customs and immigration counters in addition to a souvenir shop and a cafeteria and a money exchange facility.

The cruise operated by Cordellia Cruise from Visakhapatnam to Chennai and Puducherry during the pandemic following cancellation of its service from Mumbai and Goa to Colombo had brought several passengers from various corners of India. The tourists were thrilled at seeing the beautiful locations of Visakhapatnam, which of course has gained the reputation as the ‘love at first sight’ for many first-time travellers. As per O&M agreement, the selected party will not only operate and maintain the facility but also is allowed commercial activities in the project site. The payment of annual fixed fee has to be paid to VPA as per O&M agreement. The contract will be valid for 10 years. The terminal has four mooring dolphins-two each on either side of the berth to make a total length of 331 meters. The terminal has a berth of 180M length and 15M width, adequate parking space, building built-up area of 49,298 ft, external development of 86,972 ft and total site area of 1.36 lakh ft.

The selected operator, in consideration of its investment and services, is entitled to generate revenue from the commercial activities and leasing/licensing in accordance with the provisions of operation, maintenance and management of the cruise terminal. VPA is trying to get a good response and repeating the notification for finding out a suitable O&M firm, sources said.

It is for the first time that a cruise terminal on professional lines has been built in VPA. Shipping Corporation of India operates a passenger ship on designated days from Visakhapatnam to Port Blair. The ship mostly takes a few tourists and a large number of people going to undertake labour works from Odisha and Andhra Pradesh to Andaman and Nicobar Islands for several decades. During 2021-22, Cordelia Cruise operated 15 voyages by ferrying over 13,000 passengers.