The proposed liquefied natural gas (LNG) terminal project in Kakinada would benefit the Kakinada deepwater port in enhancing its cargo volume.

   

One of the proposed terminals would be set up by a consortium of Shell, Reliance and the Kakinada Seaports Private Limited (KSPL) and the other by AP Gas Distribution Corporation Limited (a joint venture of Gail Gas and AP Gas Infrastructure Corporation) and KSPL.

   

The port was built by the Andhra Pradesh government and is managed by the private consortium, the KSPL.  In the last about 13 years of its existence, the port made slow progress in raising and diversifying its cargo, as many of the projects based on the port have not come up in the hinterland owing to various reasons.

   

KSPL has a stake in both the projects, though it is not known how much. KSPL is also investing in deepening the approach channel from a draft of 14-16 m and dredging is being taken up for the purpose.

   

The consortium is investing Rs 600-650 crore on dredging and related projects and by 2015 the port may be in a position to handle the bigger vessels, of 1,50,000 dwt, against 70,000-dwt vessels now. It will reduce the freight cost.

   During 2012-13, the deep water port handled 12.4 million tonne against 9.7 mn t the previous year. During Apr-Jun 2013, the port handled over 3 mn t and it is set to improve its performance this year substantially during the current fiscal, reports indicate.