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Krishnapatnam Port

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Krishnapatnam Port

Krishnapatnam Port
Country India
Location Krishnapatnam
Opened 2008
Operated by KPCL- Krishnapatnam Port Company Limited
Owned by Navayuga Engineering Company Ltd
Available berths 12
Annual revenue INR700 crores
Net income INR 70 crores
A ship at Krishnapatnam port
Krishnapatnam Port breakwater with KOLOS armour units

Krishnapatnam Port is a privately built and owned all weather, deep water port on the east coast of India, located in the Nellore District of Andhra Pradesh. It is located about 190 km north of the Chennai Port and 25 km east of the city of Nellore.[1][2] The port is owned and operated by the Krishnapatnam Port Company Limited (KPCL) which is 92% owned by Hyderabad-based CVR Group. The London-based equity firm 3i Group Plc owns the remaining 8% equity in the KPCL.[3]

Establishment and Promoters

The Krishnapatnam Port is India's largest private sector port. It was inaugurated on 17 July 2008 by the UPA Chairperson Sonia Gandhi.[4] The port was built by the Navayuga Engineering Company, the flagship concern of the CVR Group, under a build-operate-share-transfer (BOST) agreement with the Government of Andhra Pradesh. The port covers an area of 4,553 acres.[5] The BOST agreement, valid for 30 years and further extendable to 50 years, requires the promoters to pay 2.6% of the port's gross revenue to the Government of Andhra Pradesh for the first 30 years. From the 30th year, that share increases to 5.4% and from the 40th year to 10.8%.[6] The agreement also requires them to develop the port in three phases with the first phase being completed by January 2008, the second phase by 2012 and the final by 2017.[7][8]

Connectivity and Hinterland

As of 2014, Krishnapatnam Port is capable of handling 75 million tonnes (mt) of cargo per annum and is the deepest port of India with a draft of 18.5 metres.[3] The hinterland of the port includes southern and central Andhra Pradesh, eastern Karnataka, northern Tamil Nadu and Eastern Maharashtra. The Port is linked to the Chennai-Kolkata rail line through a 19 km long line and is also connected with the National Highway 5 which is being upgraded from a 4 lane to a 6 lane highway.[1]

Phases of Development

The first phase of development of the port involved an expenditure of INR1400 crores and was completed in 2009. In this phase the Port developed an annual cargo handling capacity of 25 million tonnes.[5] Two mechanized Iron Ore Berths, a mechanized Coal Berth and a mechanized General Cargo Berth were set up in this phase. The second phase of the Port's development entails an investment of $2 billion and the enhancement of cargo handling capacity by 40 million tonnes. By 2020, when the Port is fully developed, it is expected to handle 200 million tonnes of cargo annually. The second phase of expansion will increase the total berths to twelve of which half will handle coal with the rest handling general, bulk and container cargo. The draft of the port is also to be enhanced from the present 18 metres to 21 metres.[5][9]

Container Terminal

In September 2012, the Port inaugurated its container terminal capable of handling 1.2 million standard containers a year. This terminal is equipped with 5 Panamax gantry cranes, two berths of 650m and a channel depth of 13.5m allowing large vessels carrying up to 8,000 containers to dock. The second phase of its development will involve the investment of INR11,000 crores and the expansion of capacity by another 4.8 million tonnes. KPCL has entered into an agreement with Container Corporation of India (CONCOR) to develop a container freight station at the port and inland container depots in the hinterland to facilitate trade through the port.[10][11][12]

Cargo Handled

When the port was inaugurated in 2008, iron ore constituted its most important cargo which peaked at 10.5 million tonnes in 2009-'10. Since the ban on export of iron ore from the Bellary-Hospet region of Karnataka, its shipments have dwindled forcing the port to diversify its portfolio. Coal is now the primary commodity handled by the port, its volume having expanded from less than 100,000 tonnes in 2008-09 11.3 million tonnes in 2011-12. The port now also plans to handle liquefied natural gas cargo, cars meant for exports, edible oils and fertilizers.[3] During 2012-13, the port handled 21.2 million tonnes of cargo, of which three-fourths comprised imported coal, and has projected a total of 30 million tonnes of cargo for 2013-14.[13]

Krishnapatnam Special Economic Zone

A 12,000 acre Special Economic Zone (SEZ) is being set up in the vicinity of the port by the Krishnapatnam Infratech Private Limited, a special purpose vehicle set up by KPCL. The SEZ entails an investment of INR6,000 crores and is expected to create 30,000 direct employments.[14] The SEZ is being designed by Mahindra Engineering and is to be a multi-product SEZ.[15]

External links

  • Krishnapatnam Infratech Private Limited
  • Krishnapatnam Port Company Limited


  1. ^ a b "Chennai port loses out to new facility". The Hindu. June 11, 2012. Retrieved 22 November 2012. 
  2. ^ "FOCUS: NELLORE DISTRICT". Frontline 30 (03). 9–22 February 2013. Retrieved 17 February 2013. 
  3. ^ a b c "New port plan raises viability concerns for Krishnapatnam". November 20, 2012. Retrieved November 22, 2012. 
  4. ^ "Andhra to get new port in Krishnapatnam". Economic Times. July 11, 2008. Retrieved 22 November 2012. 
  5. ^ a b c "Krishnapatnam Port gets Rs4,000 cr for next phase". March 18, 2009. Retrieved November 22, 2012. 
  6. ^ "Krishnapatnam Port plans to set up car terminal by Jun 2013". Retrieved 22 November 2012. 
  7. ^ "Krishnapatnam port to give fillip to ore exports". The Economic Times. October 17, 2005. Retrieved 22 November 2012. 
  8. ^ "3i Fund picks up stake in Krishnapatnam Port for $161 mn". The Economic Times. February 24, 2009. Retrieved 22 November 2012. 
  9. ^ "Krishnapatnam Port begins operations; to invest $2 billion in 2nd phase". September 27, 2012. Retrieved November 22, 2012. 
  10. ^ "Krishnapatnam Port ties up with CONCOR". The Hindu. July 5, 2011. Retrieved 22 November 2012. 
  11. ^ "Krishnapatnam to Singapore feeder service begins". September 27, 2012. Retrieved November 22, 2012. 
  12. ^ "Krishnapatnam Port starts operating container terminal". September 27, 2012. Retrieved November 22, 2012. 
  13. ^ "Krishnapatnam Port hopes to handle more cargo this year". The Hindu. April 3, 2013. Retrieved 7 April 2013. 
  14. ^ "Krishnapatnam Port plans SEZ". Business Standard. March 2, 2010. Retrieved 22 November 2012. 
  15. ^ "Krishnapatnam Infratech Private Limited". Retrieved 22 November 2012. 
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