India: IFC to Invest in Gujarat Pipavav?

Port operator Gujarat Pipapav Port Ltd (GPPL) may get a loan of up to $170 million from International Finance Corporation (IFC), the private sector investment arm of the World Bank, reports vccircle.com.

GPPL is considering expansion of the Pipavav Port’s current facilities in two phases. All facilities will be located within existing premises and port limits and no fresh land acquisition is required. The first phase expansion includes: construction of 348 meter container berth and extending existing dry bulk berth 1 by 110 m; relocation of 65 m liquid jetty; reclamation of 85 ha land; dredging in approach channel, turning basin and berth pockets to get 14.5 m draft; expansion of container yard by 13 ha; 3 rail mounted quay cranes (RMQCs); 10 eco-rubber-tyred gantry cranes (eco-RTGs); 1 Gotwald bulk cargo crane; closed coal conveyor (4400 m); upgrading of the 10 km main approach road within its existing alignment/Right of Way (RoW); a second internal main road; and additional 60 dwelling units in the employee colony. Upon implementation of Phase 1 expansion, the port will be able to handle 1.5 million TEUs of container and 10 million tons of dry bulk cargo (the “Project”). Phase II expansion will involve port capacity increase through: addition of second liquid cargo berth; expansion of container and bulk storage areas; addition of liquid cargo terminal; and addition of container, bulk and liquid cargo handling equipment. However, decision on Phase II expansion, while planned, will be taken only after completion of Phase I. IFC is considering partly financing the proposed Phase I expansion.

GPPL is an existing company, developing and operating Pipavav port under a Concession agreement with Gujarat Maritime Board (GMB). The Port is operated by APM Terminals (“APMT”), part of the A.P. Moller-Maersk Group, one of the largest container terminal operators in the world. Pipavav port is an all weather multi-user port catering to bulk (mostly coal and fertilizers), liquid and container cargo. The Port is sheltered from open sea by two islands Shial Bet and Savai Bet, which act as natural break water. Concession for development of Pipavav Port into a modern port was awarded to GPPL in 1998 after which a 725 m berth (2 berths for bulk cargo and 1 berth for containers) and a liquid cargo berth was commissioned in 1998. GMB, as part of the concession in 1998, leased 423.007 ha of land, comprising the Port premise to GPPL. Additionally, another 163 ha of land was also leased by Gujarat Government to GPPL in 1998.

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Dredging Today Staff, July 23, 2012; Image: pipavav