In the next two years, APM Terminals-owned Gujarat Pipavav Port (GPPL) plans to invest Rs 1,100 crore to double container capacity and setup tank farms at an investment.
GPPL, which runs India’s first private port at Pipavav, plans to expand its container capacity from the existing 850,000 twenty foot equivalent units of containers (TEUs) to 1.5 million TEUs at a cost of around Rs 800 crore.
Once the expansion is complete the container segment will move out from the multi-purpose berth that would then be used by bulk segment.
The length of the existing container jetty would be raised from the present 385 meter to 735 meter. While the road connectivity to the main port is being redone, the work at the water front would start by the end of monsoon, reports indicate.
In order to develop the tank farms at the port, the company is leasing out vast amount of land to three companies. The developers would invest Rs 300 crore on the project.
International Finance Corporation (IFC) agreed to provide Rs 700 crore as debt for the expansion purpose and the remaining Rs 100 crore has been raised via private placement to qualified institutional buyers (QIBs), reports indicate.