VISAKHAPATNAM PORT TRUST

DEVELOPMENT OF CRUISE-CUM-COASTAL CARGO TERMINAL

AT VISAKHAPATNAM PORT

TECHNO ECONOMIC FEASIBILITY REPORT

VISAKHAPATNAM PORT TRUST

VISAKHAPATNAM – 530 035
ANDHRA PRADESH, INDIA

FAX - 0891 - 2565023 TELEPHONE NO. 0891 - 2873353

E-mail: cevpt15@gmail.com Website: www.vizagport.com

APRIL 2019

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 CONTENTS

Contents Page
No.

1. Executive Summary 2

2. Port of Visakhapatnam – Introduction 5

3. Project background 9

4. Visakhapatnam Heritage 11

5. Market assessment and future projections 30

6. Cruise-cum-coastal cargo terminal proposal 40

7. Site information 44

8. Detailed cost estimate & lay out drawings 50

9. Project financials 55

10. Environmental concerns in specific to the 58

project

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 1. EXECUTIVE SUMMARY

a) Background:

Government of India is keen on promoting and facilitating tourism (both inbound and
domestic) in India. The objective of the Government of India is augmenting tourism
infrastructure, ensuring ease of travel, promoting tourism products and destinations,
assurance of quality standards in services of tourism service providers, projecting the
country as a 365 days tourist destination. Augmentation of infrastructure is the key to the
expansion and promotion of tourism in a sustainable manner. Ministry of Shipping, Govt. of
India, being one of the key stakeholders in promoting tourism has been exploring the
possibilities of developing infrastructure for Cruise Tourism in India in view of the
advantage of having a long coast line and presence of many tourist and heritage spots.

Andhra Pradesh has a coastline that spans 974 kilometres. The state is regarded as
a religious, cultural and economic hub. Total tourist footfalls in the state during 2017 was
16.57 crores of which foreigners were 2.71 lakhs. Andhra Pradesh Tourism has been
attracting greatest number of tourists, inland and foreign, because of the naturally,
ecologically, culturally and religiously rich and diverse variety of tourist destinations that
are treasures of visual treat where one can continuously explore new experiences of visitor
gratification and delight.

Visakhapatnam is the biggest city in the state of Andhra Pradesh. It has a unique
geographical feature of being encircled by the Eastern Ghats and the Bay of Bengal. The
city has immense tourism potential with the presence of a unique combination of tourism
spots of heritage, religious, adventure, beaches, wildlife and nature. Visakhapatnam is
gaining prominence as a “must visit” tourism destination. A first of its kind event in India,
Yachting Festival is organized in Visakhapatnam during March 2018. The four day festival
was studded with amusements like visit to different beaches, sea swimming, musical
delight, sailing competition, treasure hunt, fishing etc.

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 Port of Visakhapatnam moves nearly 25% of the cargo coastally. There is scope for
coastal movement of Steel, Cement and Petroleum products with the development of
Coastal Economic Zone, Vizag-Chennai Industrial Corridor and Petroleum, Chemicals and
Petrochemical Investment Region. The Master Plan study prepared by AECOM indicated
that there is potential for movement of additional cargo quantities by coastal route on
account of optimization of modal mix with a view to reduce logistic cost.

b) Project:

In view of the promising potential for Cruise Tourism, A scheme is therefore

conceived to develop a Cruise-cum-coastal cargo Terminal by re-orienting the existing
Channel berth located in the outer harbour with the financial assistance under the Central
Sector Scheme from the Ministry of Tourism.

c) Features of Cruise-cum-coastal cargo Terminal:

 A berth of 180 m length and 37.6 m width

 Four mooring dolphins – two each on either side of the berth to make a total length
of 330 meters
 Total berth area ( 330 m*37.6m) : 12408 Sqm
 Back up area: 15,000 sqm.
 Total area under construction : 27408 Sqm
 A terminal building of 2,000 sq. mtrs. with all amenities
 Adequate parking space
 Excellent road connectivity

The proposed structure is planned partly on land side and partly on sea side of the
existing channel berth to accommodate vessels of capacity 100,000 GRT with 300m LOA,
36.0m Beam and 8.50m draft vessels. It is proposed to construct new berth of 180m length
and 2nos of mooring dolphins on either side with a total length of 330m parallel to the
existing dredge limit line. For lay out of the berth please refer enclosed drawing.

A backup area of 15,000 m2 behind the berth is available. The backup area will be
used for development of a Building of 2,000 m 2 with air conditioning and CCTV facility to
accommodate immigration, customs, etc. The entire backup area is proposed to be
developed with internal roads, landscaping, sewer, water supply and drainage system and
provided with area illumination.

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d) Advantage of Channel Berth Location:
Development of Cruise Terminal is chosen in the Outer Harbour at existing Channel
Berth location in view of the following advantages:

 Simpler approach
 Cleaner area as all the berths in the outer harbour are fully mechanised
 No cargo stacks are in the outer harbour
 Berth is directly connected to the beach road into the city
 Highly secured area

e) Financials:

The estimated cost of the project is Rs.77 crores. During the months of November
to March the terminal will be operated as Cruise Terminal and during the months of April to
October the Berth will be operated as Coastal Cargo.
A detailed market analysis of tourism potential along with the share of Cruise
Tourism is made as part of the report. The projected volumes of coastal cargo are also
estimated basing on the Master Plan Study of AECOM.
The project financial IRR (FIRR) without grant is worked out to 3% indicating that
the project is not viable without grant. With the proposed grant of 50% of project cost, the
FIRR of the project worked out to 10%. In addition to the direct benefits that would accrue
to VPT, the indirect spin off benefits such as increase in foreign footfalls and the
corresponding foreign exchange earnings, generation of employment and development of
tourism related business activities are foreseen in significant scale.
As such, the project is found to be feasible from the technical and financial facets
with 50% as grant for Central Sector Schemes from the Ministry of Tourism, Government
of India is envisaged.

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 2. PORT OF VISAKHAPATNAM - INTRODUCTION

Located on the East Coast of India in between Chennai and Kolkata (latitude 17 o 41’
N and longitude 830 17’ E), Port of Visakhapatnam, was opened to commercial shipping on
7th Oct. 1933. The Port is serving hinterland comprising of Andhra Pradesh, Telangana,
Odisha, Maharashtra, Jharkhand and Chattisgarh and parts of northern India including
NCR. The Port is serving major sectors of Power, Steel, Petroleum, Mining, Fertiliser,
Aluminum, Cement, Consumer goods (Container) etc.

The port is ISPS compliant and has three International Accreditations for Quality,
Environment Management and Occupational Health and Safety Management viz.
ISO 9001 - 2015 - QMS (Quality Management)
ISO 14001 – 2015 - EMS (Environmental Management)
OHSAS - 18001 – 2015 - OHSAS (Occupational Health & Safety Management)

The existing navigational facilities, rail and road connectivity are as under:

Description Inner harbour Outer Harbour

Water spread (Hectares) 100 200
Permissible draft (in 14.5 18.1
Permissible length of Ship
mtrs.) 230 300
Vessel Class PANAMAX CAPE
(in
No.mtrs.)
of berths 21 6
(up to (up to

80000
The port is connected to trunk railways DWT) through
directly 2 lakhthe
DWT)
railway yards to the
Chennai-Howrah main lines of East Coast Railway. Port owns and operates a railway
system of about 185 Km. within port, functioning as a terminal agent for the East Coast
Railway and facilities direct receipt and dispatch of goods from and to any point of the
country.

The Port is connected to National Highway – 16 (formerly called as NH-5) by 4 lane

link road of 12 kms developed and maintained by a SPV constituted by NHAI as a JV with
VPT. Port is contemplating augmentation of the connectivity into a 6 lane road.

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2.1 Cargo Traffic:
Port of Visakhapatnam is equipped to handle all types of cargoes viz., Crude oil,
petroleum products, LP Gas, Coal, Iron Ore, Fertilisers, Alumina, liquid fertilisers,
chemicals, cokes, Gypsum, Bauxite, Steel, Granite, containers etc. Port handled a cargo
volume of 65.30 million tonnes during the year 2018-19 as against 63.54 million tonnes of
last financial year 2017-18, thereby achieving an incremental cargo of 1.76 million tonnes
and a growth rate of more than 2.70 %. The Port holds 4th position among Major Ports in
terms of cargo volume. Principal commodity wise cargo volumes handled at the port during
last three years is as under:
(Million tonnes)

S.No. Commodity 2018-19 2017-18 2016-17 2015-16

1 POL 16.32 16.05 16.60 16.94
2 Iron ore 10.24 10.65 11.42 5.98
3 Thermal coal 1.85 2.95 3.47 3.39

(coastal loading to TNEB)

4 Coking coal (Import) 5.80 5.76 4.33 5.08
5 Steam coal (Import) 8.95 5.84 4.06 8.02
6 Fertilizers & Raw 3.11 2.87 2.66 2.80
7 Containers 7.96 6.83 6.43 5.14
8 Others 11.07 12.59 12.05 9.68
Total Tonnage 65.30 6.83
63.54 6.43
61.02 5.15
57.03
(Lakh TEUs) (3.87) (3.67) (2.93)
A quantity of 65.30 million tonnes was handled during the year 2018-19.
The composition of coastal cargo is about 25%. The cargoes such as thermal
coal, petroleum products, iron ore, iron ore pellets, bauxite, liquid raw materials for
fertilizers, container cargo, rice, wheat, sugar, rock boulders, lime stone etc., are moved
coastally.
Major commodity wise coastal cargo handled at the port is as under:
(lakh tonnes)
Commodity 2018-19 2017-18 2016-17 2015-16
Iron ore & Pellets 90.1 80.68 83.64 45.13
Thermal coal 18.5 29.48 34.71 33.93
Crude oil 4.2 5.09 3.25 11.86
Petroleum products 40.1 35.40 42.36 42.50
Caustic soda 3.4 1.36 1.67 1.39
Bitumen 1.7 1.72 1.28 1.03

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 Containers 4.3 3.14 7.13 6.78
Others 5.4 2.81 4.49 4.48
Total 167.7 159.68 178.53 147.10

2.2 Passenger Service at VPT

Port of Visakhapatnam is already engaged in domestic cruise. Port of
Visakhapatnam is facilitating passenger service from Visakhapatnam to Andamans.
Passengers from north coastal region of Andhra Pradesh are availing the domestic cruise
facility. Regular service of 1 – 2 calls per month with 700 – 1200 passengers. One of the
clean cargo berths on the Eastern Quay is provided with all amenities. Passenger traffic at
the port during last 5 years is as under:

Description 2018-19 2017-18 2016-17 2015-16 2014-15

Embarkation 7944 8,634 9,180 10,350 12,400
Disembarkation 4920 8,224 7,330 9,313 11,311
Total 12,864 16,858 16,510 19,663 23,711

Details of passenger cargo fleet deployed at the port are as under:

Name of Ship LOA Beam NRT GRT DWT

(Mtrs.) (Mtrs.)
Harsha 132.50 21.50 2,927 9,700 5,199
Vardhana
Nicobar 157.00 21.00 4,740 14,195 4,963
Swaraj Dweep 156.97 21.00 4,741 14,239 4,313
Nancowry 157.00 21.00 4,734 14,176 5,014

Berthing of 4 Yachts at the Channel Berth (Proposed Cruise Terminal area)

permitted as per EoI.

2.3 Developmental Projects

The following thrust areas have been identified by the Port towards augmentation of
capacity, which includes mechanization and modernization programmes:
 Deepening of Channels
 Construction of additional berths with mechanized facilities
 Mechanization of existing berths / Upgradation of existing berths

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  Improvement of Road / R0.43ailway Connectivity
 Improvement of logistic facilities etc.
The Port has taken up many developmental programs for capacity enhancement in
terms construction of new berths, strengthening, deepening and mechanization of the
existing berths during the last few years.

During the last 4 years, Port has taken up 15 projects at an estimated investment of
Rs.3,151 crores and capacity of 70.71 million tonnes. In addition, 7 connectivity projects
are taken up at an estimated cost of Rs.273.4 crores and 5 other projects at an estimated
cost of Rs.338.29 crores. The assessed capacity of the port as on 01.04.2019 is 120
MTPA.

Major projects developmental projects taken up are as under:

 Development of EQ-1A berth in the inner harbor with mechanized facility for loading
of coal at an estimated cost of Rs.313.39 crores and 7.64 MTPA capacity awarded
on PPP mode.

 Extension of the existing container terminal at an estimated cost of Rs.633.11

crores and capacity of 0.54 million TEUs awarded on PPP mode.

 Development of two Panamax capable berths in the inner harbor by replacing the
old and shallow berths EQ-2,3,4 and 5 at an estimated cost of Rs.200 crores and
capacity of 6.45 MTPA.

 Improving the capacity utilization of OR-1 & 2 at an estimated cost of Rs.178.50

crores and capacity of 9.81 MTPA.

 Upgradation of R&D Yard to Railway standards and installation of RRI at a cost of

Rs.55.12 crores.

 Extension of railway line No.11 to 15 to full length at R&D Yard.

 Construction of Grade Separator from H-7 area to Port Connectivity Road at

Convent Junction.

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 3. PROJECT BACKGROUND

Ministry of Shipping, Govt. of India has taken up the Sagarmala programme towards
port-led development by taking advantage of the long coastline of more than 7,500 kilo
metres. Developing Cruise Tourism in India is also in the ambitious agenda of the Ministry
of Shipping in view of the significant growing trend of tourism potential.

During the review meeting by The Hon’ble Minister of Road Transport and
Highways with all the Chairmen of Major Ports on 28 th July 2014 it was decided that all
ports to explore possibilities for cruise terminals and identify local routes to attract
maximum traffic. It was also decided that all Ports should examine possibility of setting up
jetties for promotion of Coastal Shipping and Passenger Traffic, which will be beneficial to
the economy and the general public.

3.1 Tourism

Andhra Pradesh has a coastline that spans 974 kilometres. The state is regarded as
a religious, cultural and economic hub. Total tourist footfalls in the state during 2017 was
16.57 crores of which foreigners were 2.71 lakhs. Andhra Pradesh Tourism has been
attracting greatest number of tourists, inland and foreign, because of the naturally,
ecologically, culturally and religiously rich and diverse variety of tourist destinations that
are treasures of visual treat where one can continuously explore new experiences of visitor
gratification and delight.

Visakhapatnam is the biggest city in the state of Andhra Pradesh. It has a unique
geographical feature of being encircled by the Eastern Ghats and the Bay of Bengal. The
city has immense tourism potential with the presence of a unique combination of tourism
spots of heritage, religious, adventure, beaches, wildlife and nature.

The tourist footfall in Visakhapatnam during 2017 was 2.06 crores of which foreign
tourists constitute 1.04 lakhs. The proposed facility is designed to accommodate ships of
length (LOA) upto 300 meters, 36.0m Beam and 8.50m draft. The scheme is proposed to
be developed under the Scheme - Financial assistance to Central Agencies for Tourism
Infrastructure Development.

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3.2 Coastal Shipping

The Govt. of India has taken up the ambitious Sagarmala program with the aim of
increasing the volume of trade through coastal shipping and inland waterways and save
logistics cost nationwide for cargo handled and evacuated through seaports. The
Sagarmala program aims to change the way logistics evacuation is operated happens in
India and save logistics costs nationwide for cargo handled and evacuated through
seaports.
The Sagarmala study estimates the potential to save around INR 35,000-40,000
Crores per annum by optimizing logistics flows for key commodities by 2025. Coastal
shipping to carry about 230-280 MMTPA from current and planned capacities across coal,
cement, iron and steel, food grains, fertilizers, POL (estimated INR 21,000-27,000 Crores
saving by 2025). New coastal capacities for bulk commodities (steel and cement) of 80-
100 MMTPA (estimated INR 5,500-6,500 Crores saving by 2025).

Port of Visakhapatnam moves nearly 25% of the cargo coastally. There is scope for
coastal movement of Steel, Cement and Petroleum products with the development of
Coastal Economic Zone, Vizag-Chennai Industrial Corridor and Petroleum, Chemicals and
Petrochemical Investment Region.

A scheme is therefore conceived to develop a Cruise-cum-Coastal Cargo Terminal

by re-orienting the existing Channel berth located in the outer harbour with the financial
assistance under the Central Sector Scheme.

The proposed facility is designed to accommodate ships of length(LOA) upto 300

meters, 37.6m Beam and 8.1m draft. The facility would be operated as Cruise Terminal
during the months from November to March and as Coastal Cargo Terminal from April to
October.

The scheme is proposed to be developed under the Scheme - Financial assistance

to Central Agencies for Tourism Infrastructure Development.

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 4. VISAKHAPATNAM – HERITAGE

Visakhapatnam is a port city on the southeast coast of India and often called
"The Jewel of the East Coast". With a population of more than 20 lakhs and occupying
Area 593.54sq.kmts, it is the largest city in the state of Andhra Pradesh and the third
largest city on the east coast of India (after Chennai and Kolkata). Visakhapatnam has the
only natural harbour on the east coast of India.

It is nestled among the hills of the Eastern Ghats and faces the Bay of Bengal on
the east. Visakhapatnam is the administrative headquarters of Visakhapatnam district and
headquarters of the Eastern Naval Command of the Indian Navy.

This beautiful city is said to have derived its name from the deity 'Visakha' - the God
of Valour. The history of the town can be traced back to Ashoka the Great (273-232 B.C.)
when this was a small fishing village of the Kalinga empire.

Saga of Visakhapatnam:

 Megasthanes who visited the Court of Chandragupta Maurya (322-297 BCE),

mentioned that Andhras had 30 fortified towns and an army of a million infantry,
2000 cavalry and 1000 elephants. Buddhist books reveal that Andhras established
their kingdoms in the Godavari Valley at that time. Ashoka referred in his 13 th rock
edict (232 BCE) that Andhra was under his rule.

 Ptolemy mentions several important ports on the Andhra Coast between the mouth
of the Ganges and the Godavari from where ships sailed to the East. Podouke,
north of Chennai (Pullicat), Masulipatnam, Melange (Mahabalipuram) and
Sopatama were a few of the important ports which exported spices, sandal, pearls,
Aghil, Camphor and Silk that was imported from the farther East.

 Chinese merchants had their warehouses at the mouth of the River Krishna. After
the Satavahanas the Pallavas, who were originally from Andhra continued the
seafaring tradition. It appears from a study of the Buddhist Stupa found at Prome
(Braburma) that Buddhism probably came to that country from Andhra Desa. The
cultural influence moved on to the Malay Peninsula.

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 During 11th to 13th century, Visakhapatnam is
mentioned to be a port town of Madhyama Kalinga
and Ghantasala. The second name of the town is
mentioned as Kulottunga Chola Pattinam or Chola
Pandya Pura. An inscription in Simhachalam
temple of 1099 also reveals the same.

 Kulottunga Chola I made endowments to this temple, as evidenced from inscriptions

dating back to 1087. The Vengi Chalukyas
of Andhra Pradesh renovated the original
shrine in the 11th century. Much of the
structure as it stands today is the result of
renovation by Narasimha I of the Eastern
Ganga dynasty in 13th century.

 Krishna Deva Raya, the Vijayanagar monarch visited this temple in the year 1516
and presented the precious jewellary to the diety.

 Ganapathi Deva the greatest of the Kakatiya rulers followed by his dauthter
Rudramba (1262-1299) ruled the place. During their time Marco Polo visited the
place and noted the prosperity.

 Under Ala Ud Din Khilji, plundering the South was done by Malik Kafur and later by
Ulugh Khan.

 1323 saw large chunk of South under Delhi.

 Prolaya Nayak feed coastal Andhra. Till about 1509 the area was under the
Gajapathis. Later Krishnaraya extended his reign upto Kalinga.

 Aurangazeb, invaded Golkonda in 1687 and for about a period of 35 years this
region was ruled by Mughal Nizams.

 There were several changes and eventually europeans emerged on the scene.
Bimilipatnam, or Bhimunipatnam just adjacent to Visakhapatnam in the northern

12
 side once called as “The Bristol of the East”and “Pondichery of Circars”had also
enjoyed better maritime trade.

 Duch had established trade in these places and British wanted a foot hold in this
area. The English settlement at Vizagapatam, the present Visakhapatnam was
founded in 1682.

 The archaeological excavations at Bojjana

Konda and Lingalakonda near Anakapalle
reveal the gold coins of Samudra Gupta period,
lead coins of Satavahana regime.
Bheemunipatnam was one of the busiest ports
in Andhra Coast during 18th and 19th centuries. It was first a settlement of the
Dutch. During 1882-83, goods worth of Rs.83 lakhs was moved through
Vizagapatam / Bheemunipatnam (Rs.175 lakhs from Godavari District). The
principal commodities traded were cotton twists and piece goods, jute & twine, iron,
timber, hardware and manganese ore, oil seeds hides & skin, gingili oil, grain, raw
sugar, Indian crafts, myrobalans etc.

 When Dutch found that Bheemunipatnam lost its importance in the commercial
contacts to the weavers, the headquarters was transferred to Coconada. At
Vizagapatam, however, trading activities continued.

 Visakhapatnam first formed part of the Kingdom of

Kalinga which extended from river Mahanadi in the
north to the Godavari in the south with Kalingapatnam
as its capital.

 From an inscription No. (187 of 1893) in Sri

Bhimeswara Swamy temple in Draksharamam of East
Godavari District, we find a reference to a merchant of
Visakhapatnam of the Saka year 990 corresponding
to 1068 AD i.e., eleventh century.

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  According to Mr. Carmichael, Editor of district manual in 1869 the name of
Visakhapatnam is etymologically explained as the town of Vaisakeshwara. A king
of Andhra Dynasty on his pilgrimage to Varanasi encamped on the resent site and
pleased with its scenic beauty, had built a temple to his family deity Vaisakeshwara.
Dutch traders were the first Europeans to enter Vizagapatam and the years 1682
saw the settlement of a branch of East India Company. This factory was preparing
salt, arrack, betel leaves.

 By the end of 17th century to meet the growing demand of wool, East India company
established factories at Masulipatnam, Modapalem, Injuram and Vizagapatam on
the coromandel coast. The cotton goods manufactured in this area (Calicoes,
Muslins etc.) were exported to European Countries. The European merchants
resided at Vizagapatam for management of factory, Long cloth, neck cloth, etc., was
manufactured cheaply. In 1722, subordinate ports at Injuram followed by Uppada,
Neelapalli were established. At Injuram and Uppda (East Godavari district)
merchants assembled to collect cloth and also at Neelapalli near Yanam. The
manufactured cloth was sent to Vizagapatam for exports. Manganese ore used to
be exported for steel making in UK and USA. The other exports were oil seeds,
jaggery, hides and skin, jute and Indigo and the imports were cotton twist and yarn
for the use of handloom weavers. By about close of 19th century, it is considered as
one of the important trade centers having extensive trade relations with Burma and
ships of British India Steam navigation Co., were regularly visiting the port.

4.1 Tourism Hot Spots in Visakhapatnam

a) Araku Valley

Araku Valley is a hill station in Visakhapatnam

district in the Indian state of Andhra Pradesh,
lying 111 km west of Visakhapatnam city. This
place is often referred as Ooty of Andhra. It is
a valley in the Eastern Ghats inhabited by
different tribes. It is located in the Eastern

14
Ghats about 114 kilometres (71 mi) from Visakhapatnam, close to the Odisha state border.
The Anantagiri and Sunkarimetta Reserved Forest which are part of Araku Valley, are rich
in biodiversity. Coffee was first introduced in Eastern Ghats of Andhra Pradesh in 1898 by
British in Pamuleru valley in East Godavari district. Subsequently, it spread over to Araku
Valley in early 19th century.

b) Borra Caves

The Borra Caves, also called Borra Guhalu, are located on the East Coast of India, in the
Ananthagiri hills of the Araku Valley (with hill
ranges' elevation varying from 800 to 1,300 m
(2,600 to 4,300 ft)) of the Visakhapatnam district
in Andhra Pradesh. The caves, one of the
largest in the country, at an elevation of about
705 m (2,313 ft), distinctly exhibit a variety of
speleothems ranging in size and irregularly
shaped stalactites and stalagmites. The caves are basically karstic limestone structures
extending to a depth of 80 m (260 ft), and are considered the deepest caves in India.

c) Katiki Waterfalls

Katiki Waterfalls is named after Katiki, the place where it is located. Katiki Falls originates
from River Gosthani about 90 kilometres
from Visakhapatnam and about 50 ft high.
The waterfall is located near the Borra
Caves and is a famous attraction for
picnickers and nature lovers. The natural
landscape surrounding the waterfall is lush
green and goes through an uneven path
that adds an element of adventure to the
visitors trekking their way to the waterfall. It is, therefore, an ideal attraction for beginner to
intermediate level trekkers.

15
The cool breeze, the greenery and the soothing sounds of the Katiki Waterfall will take off
all the worries in one's mind. The 50 feet high natural formation is a breathtaking sight from
a distance. Do take a moment to listen to the birds singing their tunes as you sit in solitude
or soak your feet into the cold river water. Those who wish to enter the waters can do so to
enjoy some exciting moments with family and friends. Monsoons, in particular, are
extremely beautiful with the natural vegetation thriving in the region. Katiki Falls is the
place to be for those who wish to rejuvenate their souls.

d) Kondakarla Ava
Kondakarla Ava is a famous Lake and Bird
Sanctuary in Visakhapatnam of Andhra
Pradesh state in South India. It comprises a
unique and endangered forest type.its
located in foothill of Eastern Ghats. Wet
evergreen forest type with species like Shell
Ducks, Cotton Teals, Northern Pin Tails and
Asian Open Bills are found in the sanctuary
and Typha angustata, Nymphoides indica, Azolla filiculoides, Pistia stratiotes are also
found here. Natural lake and bird sanctuary located towards south at a distance of 50 KM
from Visakhapatanam. This fresh water natural lake is home of many birds and one of the
main spot for photographer interested in birds photography.

e) Lamba Singi

Lambasingi (or Lammasingi) is a small village in the Chintapalli Mandal of Visakhapatnam

district in the Indian state of Andhra
Pradesh. It is situated in the agency area.
This place is often referred as Kashmir of
Andhra Pradesh. The temperatures in this
places go as low as -2 °C in December –
January). Many fruits like apple grow in
this area due to its cold climate. With

16
quaint valleys and chilling temperatures, Lambasingi is the only place in the southern
region that sees snowfall. Perched at an altitude of 1000 meters above sea level, this misty
hill station in Visakhapatnam's Chintapalli town, is also fondly known as the 'Kashmir of
Andhra Pradesh'. Another name for Lambasingi is Korra Bayalu, which in translation
means “if someone stays out in the open at night, by morning they would freeze like a
stick!”

f) Kailasagiri Hill

Kailasa giri is located on a hilltop and is

a must to visiting place for all people
visiting Vishakhapatnam. It is one of the
prominent hill top parks with panoramic
sea view on the East Coast. This has
developed as an attractive picnic spot,
with the seven different beautiful
viewpoints to enjoy the serene
atmosphere and scenic beauty.
Greenery and Fresh Breeze from one side and the beautiful hills round there give a
pleasant feeling.

Kailasagiri is a favorite location among the

filmmakers all over India. The major attraction
of the park is Lord Shiva Parvati statue. The
idol of Lord Shiva a top the hill stands tall at a
height of 40ft. The floral clock one of the
biggest of India with a diameter of 10 ft.

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 g) Simhachalam Temple

The Shri Varaha Lakshmi Narasimha

temple, Simhachalam is a South Indian
Hindu temple situated on the
Simhachalam hill, which is 500 metres
above the sea level in the north of
Visakhapatnam, Andhra Pradesh. It is
dedicated to one of the Hindu trinity
deities Vishnu, who is worshipped there
as Varaha Narasimha. As per the temple's legend (which is divided into 32 chapters),
Vishnu manifested in this peculiar form, with a boar head,
human torso and a lion's tail, after saving his devotee
Prahlada from a murder attempt by the latter's father
Hiranyakashipu. Except on Akshaya Tritiya, the idol of
Varaha Narasimha is covered with sandalwood paste
throughout the year, which makes it resemble a Shiva
Lingam.

Simhachalam is one of the 32 Narasimha temples in

Andhra Pradesh which are important pilgrimage centres.
It was regarded as an important centre of Vaishnavism in the medieval period along with
Srikurmam and others. The temple has been recognised by historians with the help of a
9th-century AD inscription by the Chalukya Chola king Kulottunga I. In the later half of the
13th century, the temple complex underwent radical physical changes during the reign of
the Eastern Ganga king Narasimhadeva I. It later received patronage from many royal
families, of which Tuluva dynasty of Vijayanagara Empire is a notable one. The temple
underwent 40 years of religious inactivity from 1564 AD to 1604 AD. In 1949, the temple
came under the purview of the state government and is currently administered by the
Simhachalam Devasthanam Board.

18
 h) Sri Suryanarayana Swamy Temple

Arasavalli Sun Temple is a 7th-century AD

Sun Temple at Arasavalli in Andhra
Pradesh, India. It is situated in Arasavalli
Village at a distance of 1 km east of
Srikakulam Town. It is believed that the
temple was built by king Devendra Varma,
ruler of the Kalinga Dynasty. This temple is
considered as one of the oldest sun
temples in india. The temple is very much
recognized as a resemblance of
magnificence and beauty. It takes in architectural skills of Vishwakarma Brahmins or
Maharanas of Odisha. In the earlier parts of the day the temple is built to direct the sun´s
light to fall on the feet of the lord Surya showing his importance and power.

i) Ramanarayanaswamy Temple

Located 35 kms off Vizag, this

theme park has set a standard in
many ways, attracting tourists not
just from its vicinity but from
across the globe. Raising the bar
of what one can expect from a
theme park, from a great epic and
from a spiritual destination, the Ramnarayanam is as unique as it is special. Spread over
15 acres, taking over a decade for construction, using the skills of thousands of artisans
from across the country and costing several crores of Rupees, this spiritual theme park is
exceptional in more ways than one. Based on the great epic of Valimiki Ramayana, this
theme park is the first-of-its-kind in the country having been built entirely without taking
donations. It is uniquely built in the shape of a bow and arrow as a two-storey complex.

19
This park is also home to the most exotic spread of greenery, and the grand lawns offer
lush open space where visitors
can walk around. With many
trees dotting the landscape, one
section showcases the nine
sacred trees of Raasi vanam,
Nakshatra vanam, Saptarishi
vanam, Navagraha vanam,
Vinayaka vanam, Pancha bhoota
vanam, Narayana vanam, Tulasi vanam and the Panchavati vanam. These rare trees have
been a part of Indian scriptures and some of them were especially brought in from across
the country as well.

j) Indira Gandhi Zoological Park

Indira Gandhi Zoological Park is located
amidst Kambalakonda Reserve Forest in
Visakhapatnam, Andhra Pradesh, India. It
is the third largest zoo in the country.

The zoological park is named after the

former Prime Minister of India, Indira
Gandhi. It was declared open to the public
on 19 May 1977.[4] It covers an area of 625
acres (253 ha). It is situated in Visakhapatnam amidst the scenic Eastern Ghats of India. It
is surrounded by the Eastern Ghats on
three sides and Bay of Bengal on the
fourth side.

Nearly eighty species of animals

numbering to about eight hundred are
present in the zoo. The Zoo Park has
different sections for primates, carnivores, lesser carnivores, small mammals, reptiles,
ungulates and birds caged in their natural ambiance.
20
 k) Kambala Konda

The Kambalakonda Wildlife

Sanctuary is a forest located
near Visakhapatnam. It is under
the control of Andhra Pradesh
Forest Department since March
10, 1970. Earlier the land was
under the control of Maharajah of
Vizianagaram. It was named
after the local hillock Kambalakonda. It is a dry evergreen forest mixed with scrub and
meadows and covers an area of 70.70 square kilometers. The indicator species is the
Indian leopard. The sanctuary has a dry evergreen forest mixed with scrub and meadows.
The terrain is hilly with steep slopes.

l) Ramakrishna Beach

One of the most popular beaches of Vishakapatnam, RK

beach is a beach for to spend some relaxed time, enjoy
strolls across the beach, sunbath and more. R.K. Beach
or the Ramakrishna Beach derives its name from the
Ramakrishna Mission. It is spread over a vast space with
the metropolitan charms on one side and the calmness of the Bay of Bengal on the other.
If you are drained from all the exploration and sightseeing, this is one place where you can
sit back, relax and enjoy your solitude. You can also check out the souvenirs available at
the small shops here at the beach. People enjoy looking at the distant ships using the
public telescopes here. You can also try out some lip-smacking bhel available at the R.K.
Beach. Other delicacies available here
include corn on the cob, chat and kebabs.
This place is easily accessible.

21
 m) Rushikonda Beach
The Rishikonda Beach is a stunning beach with pristine waters that is located on the coast
of the Bay of Bengal in Vishakhapatnam, in the Indian state of Andhra Pradesh. APTDC,
which is in charge of this natural beauty, has done a great job in looking after the beach
and ensured that this natural attraction remains unharmed. The Rishikonda Beach is thus
rightly named as the 'Jewel of the East Coast', owing to its essential and intact beauty. The
serene golden sands of the beach are located in the bosom of the Rishikonda hill. The
calm blue water of this beach is a sight to the sore eyes, and one can indulge in some
quiet, peaceful time with friends and family while at the beach.
Located in the midst of frothy blue sea
and emerald greenery, the scenery that
this beach boasts of is indeed
mesmerizing and breathtaking. This
place is a favourite among water sports
lovers because of the range of activities
that are offered here. If you are in the
mood for an adrenaline rush, you can
indulge in the water sports that are
offered here. The Rushikonda Beach is one of the few beaches that offers swimming under
expert supervision, so do not forget to take a quick dip in the water.
However, the beach's natural charms are one of the main reasons for its immense
popularity among local as well as foreign tourists. Tourists especially love to take a long
walk along the stretch of the sand, and the sunrise and sunset are particularly beautiful
here. The Rishikonda Beach is an ideal destination for a peaceful weekend getaway.

n) Bheemunipatnam Beach
Bheemunipatnam lies in Visakhapatnam district in Andhra Pradesh state, India. This place
is believed to have emerged during the period of Mahabharata around third century B.C.
and is associated to early Buddhism era in Andhra Pradesh. The place got its name from
Bheema, a character in Mahabharata.

22
 There is a historical evidence to prove the
existence of Buddhist culture at
Bheemunipatnam on Pavurallakonda (also
termed as Narasimhaswami Konda) hillock.
The remnants of Buddhist era was traced
during excavations. Buddhist schools like
Mahayana and Hinayana were established
in this place and also to far east lands from
Port of River Gosthani. A Hindu temple in the name of Lord Narasimha towards the east of
Pavurallakonda is situated here. Historical evidence suggests that this temple was built
around 14th century by the great Mindi Kings. Bhimili town carries two more temples like
Choleswaralayam and Bheemeswaralayam which dates back to Chola period. East India
Company made this Bheemunipatnam as major trading center of east coast. Bhimili port
was employed to operate passenger vessels to kolkata and Chennai during British rule.
During 17th century, Bheemunipatnam was one among the Dutch settlements of Dutch
Coromandel. The remnants of Dutch East India are still traceable at Bheemunipatnam.
There was a port currently went into sea, was the place where Dutch and British rulers
used to fulfill their trade through sea route. An oldest Christian cemetery is situated near
Bheemunipatnam beach.

o) Yarada Beach

Located about 15 kilometers from the

city of Visakhapatnam, Yarada Beach is
a well-kept local secret, surrounded by
rocky hills. It is not crowded and best
suited for small groups' half day outing in
a very secluded and natural environment
at this beach. Going into water is not
advised here, as the water is quite polluted with industrial waste. If your luck favors, you
can see the multicolor crabs climbing up the rocks. Yarada beach is perhaps one of the

23
cleanliest and safest beaches in India right now. The entire area is covered with hundreds
of banana and coconut plantations.

p) Visakha Museum

Visakha Museum is a
museum located in the port
city of Visakhapatnam in
Andhra Pradesh, India which
houses the historical
treasures and artifacts of the
Kalingandhra region.
Collections available for
viewing in the museum include ancient armory, crockery, coins, silk costumes, jewelry,
stuffed animals, portraits, manuscripts, letters, diaries, scrapbooks, periodicals, and maps.
All of these were used by the early settlers in the region. Many models of warships, planes
and submarines can be found here. There are many historical items presented by different
countries too. The museum also showcases a search light reflector 30", the route of
Vasco-da-Gama's maiden voyage to India and also the words of Nehru, "To be secure on
land, we must be supreme at sea."

q) INS Kursura Submarine Museum

INS Kursura (S20) was a Kalvari-class

diesel-electric submarine of the Indian Navy.
She was India's fifth submarine. Kursura
was commissioned on 18 December 1969
and was decommissioned on 27 February
2001 after 31 years of service. She
participated in the Indo-Pakistani War of
1971, where she played a key role in patrol
missions. She later participated in naval
exercises with other nations and made many goodwill visits to other countries.

24
After decommissioning, she was preserved as a museum for public access on RK Beach
in Visakhapatnam. Kursura has the distinction of being one of the very few submarine
museums to retain originality and has been called a "must-visit destination" of
Visakhapatnam. Despite being a decommissioned submarine, she still receives the navy's
"Dressing Ship" honour, which is usually awarded only to active ships.

r) TU-142 Jet Museum

After 30 years of service the
TU-142M aircraft of Indian
Navy was decommissioned
and placed at
Visakhapatnam sea beach
by converting it to a museum.
Located just opposite to
Submarine museum this
became one more major tourist attraction at RK beach area.
Before entering into the aircraft you can see display of various equipments and parts of
aircraft placed inside one exhibition hall. Equipments like sonobuoys, propeller, engine,
survival kit, anti-submarine missile, data recorder etc are displayed with all details. After
visiting the exhibition hall you will enter into the aircraft. After seeing various equipments
inside the plane you can come out of the aircraft from its backside door.

s) Bojjana Konda and Lingala Konda

Bojjannakonda and Lingalakonda are two Buddhist rock-cut caves on adjacent

hillocks, situated near a village called Sankaram, which is a few kilometres away from
Vishakhapatnam. The sites are believed to date between 4th and 9th Century A.D, when
the 3 phases of Buddhism (Hinayana, Mahayana, and Vajrayana) flourished at Sankaram
(Sangharam as it was called then). Bojjana Konda, the astern hill is covered with a large
group of monolithic stupas surrounding the rock-cut platforms of the Maha stupa The dome
of the stupa is found constructed of brick. It was excavated under the aegis of Alexander
Rim in 1906. Interesting aspect of this site is it feature all three phases of Buddhism i.e.
Hinayana, Mahayana and Vajrayana.
25
Groups of rock-cut and brick
stupas and small chaityas
surround this stupa. In two of the
brick stupas, stone relic caskets in
the form of miniature stupas were
found. There is also a stone [Linga
being the name locally applied to
the stupa]. An image of the
Goddess Hariti is found at the foot
of the hill as per the archaeological sources.

On this hill there are six rock-cut caves of which some have sculptured panels. One main
cave has sixteen pillars, or which five are broken, and it enshrines a monolithic stupa in the
centre. There is a pradakshina-patha around
it. On the ceiling over the stupa is a carving
of a chhatra, i.e., umbrella which was
originally connected with the top of the stupa,
the shaft being now lost. Above this cave, is
an upper storey with the figures of Buddha.
In all, on this hill [Bojjannakonda], there are
six rock-cut caves of which some have
sculptured panels. Most panels consists of a seated Buddha and attendants.

t) Thotlakonda

Thotlakonda Buddhist Complex is situated on

a hill near Bheemunipatnam about 15
kilometres from Visakhapatnam. The hill is
about 128 metres (420 ft) above sea level and
overlooks the sea. The Telugu name
Toṭlakoṇḍa derived from the presence of a
number of rock-cut cisterns hewn into the

26
bedrock of the hillock.

Thotlakonda was well within the influence of ancient Kalinga, which was an important
source of dissemination of Buddhism to Sri Lanka
and various parts of Southeast Asia. It provides an
insight into the process of transoceanic diffusion of
Indic culture, especially Buddhism.

A hill on the sea coast with salubrious climate was

an ideal attraction for the Buddhist monks to build
a monastery complex here. After its discovery,
major excavations established the existence of a
Hinayana Buddhist complex which flourished 2000 years ago. To the South of the complex
there is a tank which served as a water source to the inhabitants of the monastery.

The excavations reveal Satavahana dynasty lead and Roman silver coins indicating
foreign trade; terracotta tiles, stucco decorative pieces, sculptured panels, miniature stupa
models in stone, and Buddha footprints were also found. The excavations also yielded
twelve inscriptions in the Brahmi script. From polygraphic studies, it appears that the hill
might have been known as Senagiri; Sena in Pali means "elder, superior".

Thotlakonda's peak activity was between the 2nd century BCE and the 2nd century CE
owing to brisk Roman trade and religious missions sent abroad. Thotlakonda came into
existence along with nearby sites in Visakhapatnam like Bavikonda and Pavurallakonda.
The lofty stupas shining during the
day, with their light lime plaster and
with rows of wick lamps during nights,
might have served as guiding
landmarks of nautical commuters.
There appears to have been no royal
patronage for this monastery. However
traders and local believers seem to

27
have supported the complex. In its heyday, Thotlakonda might have accommodated more
than 100 bhikkhus.

Nikaya Buddhism appears to have been practiced here, including the worship of Gautama
Buddha through symbols such as padukas and other material remains rather than using
human representation.

u) Baavi Konda

Baavikonda Buddhist Complex lies about 16 km from

Visakhapatnam, in the Indian state of Andhra
Pradesh, on a hill about 130 metres above mean sea
level. The term Baavikonda in Telugu means a hill of
wells. As per its name, Baavikonda is a hill which has
wells for the collection of rainwater. Baavikonda
Monastery dates back to the 3rd century BCE. A large Buddhist complex was excavated at
this site.

v) Pavuralakonda

Pavurallakonda or Pavurallabodu is the local name of a hill, popularly known as

Narasimhaswamy Konda, near Bheemunipatnam about 25 km towards north of
Visakhapatnam. It is located at a height of about 150 meters above mean sea level.

Pavurallakonda consists of a ruined hill-top

Buddhist monastic complex probably
witnessed human habitation from 3rd
Century BCE to 2nd century CE. It is one of
the Largest Buddhist Monasteries of North
Coastal Andhra Region. Hinayana
Buddhism may have flourished at this hill-
top site.

28
 Initial Excavation of this site yielded many
relics. Two Brahmi label inscriptions,
foundations of Viharas, circular chaityas,
votive stupas, halls etc. are located among
the ruins. Coins, polished ware, beads etc.
were recovered from the site by the state
archaeology Department[1] of Andhra
Pradesh. Nearly Sixteen rock-cut cisterns are
carved on the hill for the storage of rain
water. Excavations and Restoration Program are under progress at Pavurallakonda.

29
 5. MARKET ASSESSMENT AND FUTURE PROJECTIONS

5.1 Tourism Sector

The World Economic Forum’s (WEF’s) travel and tourism competitiveness index
2017 showed that India had moved up 12 places and now ranks 40th among 136 nations
globally. The report also noted that this was the largest leap made by any country in the
top 50, thereby making India, with its rich and diverse cultural heritage and natural beauty,
a prime economy to lead the Asian century in travel and tourism.

The Govt. of India is keen on increasing the cruise liner traffic to India and working
on turning India into a hot spot of cruise tourism by addressing shortcomings that have
impeded the sector’s growth. The Govt. of India is aiming at developing world-class port
berths for cruise ships and simplifying security and immigration procedures for tourists.

Domestic tourism growth was driven by rising numbers of people travelling across
the country for pilgrimage, wildlife, sightseeing, photography and adventure sports
holidays. Wider economic growth of the country, risings disposable incomes, formal
employment with leave entitlements etc., along with increased marketing efforts through
television commercials, tour operators and agents of various states highlighting the best
tourism experiences on offer will propel growth forward.

Within the Asia-pacific region India is ranked 11th in terms of international tourist
arrivals (2.88%). More than 8 million foreign tourists arrived in India in 2015 at an annual
growth rate of 4.5%. Indian nationals departing for visits abroad was 20.4 million with an
11.1% growth rate and domestic tourist visits accounted for more than 1.4 billion.

Domestic tourism is expected to grow at the 11% CAGR clip with holiday takers
overall anticipated to increase at a CAGR of 5% over the long term.

5.1.1 Cruise Tourism

The global cruise industry is growing rapidly. It grew from 10 million in the year 2000
to more than 25 million in 2017. And with 94 ships on order today, the number of cruise
passengers is projected to reach 40 million by 2025. With India’s overall outbound travel

30
growing at a robust pace year-on-year and being estimated to be a 50 million outbound
travel market by 2020, cruise industry is keen to develop this largely untapped and hitherto
a very small cruise source market.

The Ministry of Shipping, in conjunction with the Ministry of Tourism, has announced
reforms to the regulatory processes governing the cruise tourism industry in the county.
The objective is to revolutionize this industry, which has a high employment generation
potential, by simplifying rules and procedures pertaining to various aspects of cruise port
operations like security, immigration, and customs. The reforms are based on
recommendations of a global consultant engaged by the ministry to draw up an Action Plan
for providing for providing a customer friendly and hassle-free logistics process for cruise
tourism industry and develop an enabling ecosystem necessary to promote and sustain
cruise.

As a country with immense beauty and diversity, India has enormous tourism
potential. Over the year tourism in India has witnessed a sea change and the sector owes
its success to consistent economic development, cultural growth and national integration.
Moreover, worldwide cruise sector is emerging a new marketable product. However, in
India, the sector is largely unexplored. The Government has initiated the ambitious
development of cruise tourism in India, as part of the National Perspective Plan.

India has only a minor share in the world cruise tourism market, estimated at
23million passengers 2016. According to a study by consulting firms Bermello, Ajamil &
Partners, EY and Finance for Cruise Destinations commissioned by the Ministry of
Shipping, some 120,000 Indians book a cruise each year Statistics obtained from the
Singapore Tourism Board (STB) indicate that a majority of India’s circuit tourists travel to
Singapore. Thus, India with its vast and beautiful coastline can be a tourist destination for
cruise tourism.

To make cruise tourism a driver of economic growth, the Cruise Shipping Policy of
Ministry of Shipping was approved by the Government of India on 26 June 2008. Objective
is to make India an attractive cruise tourism destination with state-of-the-art infrastructural
facilities. The Ministry of Shipping and Ministry of Tourism, are together working on a
cruise tourism policy with an aim to tap more investments in the sector and increase the

31
cruise liner traffic to India. Aim is to increase it tenfold to 700 vessels a year. The policy
aims to turn India into a hot spot of cruise tourism by addressing shortcomings that have
impeded the sector’s growth so far. The Government plans to develop Mumbai, Chennai,
Koch, Goa and Mangalore Ports into cruise hotspots. Ministry urged 200 minor and private
ports with the state governments to develop passenger terminals for cruise tourists. The
policy envisages norms of immigration, security problems for foreign tourists, hospitality
and restaurant facilities.

Taking the potential growth of India as a cruise tourism market and translating that
into long-term projections to provide a future vision of cruise passenger throughput, berths
demand, infrastructure needs and the level of economic and social impacts provided is
primarily based upon consumer demand and capacity deployment into India. These
projections are used as the baseline to determine India’s future demand and performance.
The cruise projections assess the current industry trends affecting future cruise passenger
and vessel throughput for India and the key port facilities over a 25 year planning period
(2016/17 – 2042/43.)

32
5.1.2 Tourism outlook for Visakhapatnam

5.1.3 The footfall summary report of Andhra Pradesh is as under:

Source: aptourism.gov.in

From the above, it could be seen that tourist footfalls in the state of Andhra Pradesh
has been increasing. The footfalls at Visakhapatnam during 2017 was 2.06 crores of which
foreign footfalls was 1.04 lakhs.

5.1.4 Cruise Tourism Potential - Visakhapatnam

Visakhapatnam has a promising potential for developing cruise tourism.

 Visakhapatnam is the biggest city in the state of Andhra Pradesh.

 Visakhapatnam has seemingly discovered its new identity after 2014 and is now
emerging as the business and technology hub and also as a travel and leisure
destination.

 Development of Fintech Valley - a world class centre of innovation with an eco-

system of Global financial services with the convergence of companies,
Government and academia to achieve unmatched business goals and successes.

 Vizag is also being developed as a travel destination. The yachting festival held
here brought into focus the bustling city's huge tourism potential.

33
 Ministry of Tourism, Govt., of AP was confident that two years down the line there
will be people who will come to Vizag for water holidays.

 The city of Visakhapatnam had not been marketed so far as tourist destination.
Buddhism circuit can be created here and marketed in countries like Sri Lanka,
Taiwan, China and Japan, which always look for Buddhism products.

 Ten miles from Vizag port is the Pakistani Gazi submarine which can be one of the
finest diving sites of the world.

 Visakhapatnam has a unique geographical feature of being encircled by the

Eastern Ghats and the Bay Of Bengal

 Exotic beaches of Yarada, Gangavaram, RK beach, Rushikonda with golden sand

against the back drop of bright blue waters

 Existence of famous Buddhist Circuits like Bojjanakonda, Thotlakonda, Bavikonda

and Salihundam

 Ancient temples like Simhachalam, Arasavilli, Srikurmam, Ramateertham,

Annavaram

 Untouched, pristine and beautiful nature – Araku valley, Ananthagiri, Borra Caves
etc.

 As part of the India Smart Cities Challenge, Visakhapatnam is one of the cities that
were selected amongst top 20, in a nationwide competition between 100 cities
(ranked 8th).

 Visakhapatnam pronounced the third cleanest city three years in a row in Swachh
Survekshan since 2016.

 Adjudged as Best Green City with Public Parks, Corporates, Schools, Hospitals
during AP Greening and Beautification Corporation Awards 2017.

 The city is home to several heavy industries like the HPCL, RINL, NTPC, HSL, CIL
etc. The Eastern Naval Command of the Indian Navy is located in Vizag.

 Connected to the National Highway-16.

 The Visakhapatnam International Airport is at 15 Km. from Port.

 Vizag has 21 Hotels of 3 Star and above.

34
 With the advantages in the Vizag region and with the encouraging policy initiatives
of the Government of India, the Cruise Tourism potential for Vizag is audaciously
promising.

5.1.5 Projection

In addition to the general trend for cruise tourism at Visakhapatnam, the following
specific indications / studies also can be considered as pointers for future projections:

a) J.M.Baxi & Co

 J.M.Baxi & Co. handles approximately 85% of the Cruise Liners in ports
 One of the major Cruise Line Principals has introduced Visakhapatnam in its itinerary
 Silver Discoverer of the Silver Sea Cruises were called at Visakhapatnam one day
each during January & February 2019 as follows:
TH
24 January 2019 (from 0600 Hrs to 1800 Hrs)
th
17 February 2019 (from 0630 Hrs to 1730 Hrs)
st
21 February 2019 (from 0800 Hrs to 1800 Hrs)

 These maiden calls will provide much required boost to the Cruise tourism in
Visakhapatnam.
 J.M.Baxi & Co. evinced interest in continuing the facility upon satisfactory
performance.
b) Bermello, Ajamil & Partners, Inc., Ernst & Young, Finance for Cruise Destinations
 Visakhapatnam will have significant opportunity to serve as homeports for open jaw
sailings initially.
 Visakhapatnam is identified with cruise development potential through the
stakeholders’ interview process.
 Visakhapatnam, Port Blair and Lakshadweep are identified to provide short to mid-
term opportunities for cruise port development.
 There could be a mixture of cruises in the market that provide for additional
offerings and may be open jaw cruises that are extended into longer cruise offerings
between Mumbai and Vizag and a far foreign port.

35
  Promising outlook for Cruise Tourism exists with potential diversion from direct
competing ports like Singapore.
c) IL & FS

 Out of the Generic destinations in Bay of Bengal, Visakhapatnam on the mainland

coast is having the best potential for Tourism based on the natural beauties.

 Visakhapatnam is the largest city in Andhra Pradesh having excellent urban

facilities.

 Visakhapatnam is the gateway to Araku and near-by Buddhist circuits spread over
the region.

 Tapping 50% of tourists arriving at Port Blair and other tourists from Eastern India, it
is estimated that 1,000 Port Blair bound tourists would be available for cruise
holiday.

Visakhapatnam will have significant opportunity to serve as homeports for open jaw
sailings initially. Market for Cruise Tourism at Visakhapatnam will be of induced nature
after creating the facility. A WTO study1 indicates averages of 1.4% of all international
arrivals across the world are cruise tourists. The international footfalls in Visakhapatnam
have grown from 0.54 lakhs in 2014 to 1.04 lakhs in 2017 at a CAGR of ~ 25%. The
estimated Cruise Tourists and the number of cruise vessels considering a growth of 10%,
15% and 20% are summarized below:

Year 10% CAGR 15% CAGR 20% CAGR

Foreign Cruise Vesse Foreign Cruise Vessel Foreign Cruise Vess
footfalls tourists ls footfalls tourists s footfall tourists els
per per s per
annum annum annum
(lakhs) (lakhs) (lakhs)
2017 1.04 1,456 3 1.04 1,456 3 1.04 1,456 3
2020 1.40 1,960 4 1.60 2,240 5 1.80 2,520 5
2025 2.25 3,150 6 3.25 4,550 9 4.50 6,300 13
2030 3.75 5,250 11 6.40 8,960 18 11.00 15,400 31
2035 6.25 8,750 18 13.00 18,200 36 28.00 39,200 78
1
Article published in International Research Journal of Business and Management on “Market Potential for
Cruise Tourism In India” by Narayan B. Prabhu M. and Naresh P. Nayak

36
5.2 Coastal Shipping

5.2.1 Coastal Cargo Profile

The Sagarmala program of the Government of India aims to change the way
logistics evacuation is operated / happens in India and save logistics costs nationwide for
cargo handled and evacuated through seaports. It is viewed that the project could form
around 2 percent of the country’s GDP from coastal states and districts and create societal
impact in the form of 10 million jobs, coastal community skill building, etc.
Coastal and Inland waterway transportation is energy efficient, eco-friendly and
reduces logistics cost for domestic freight. The cost per tonne kilometre of moving cargo by
sea or inland waterway routes can be 60 to 80 per cent lower than by road or rail.
However, the modal share of coastal shipping remained low. The Sagarmala study found
significant potential for moving raw materials and finished products between several
production and demand centres in India lying close to the coastline and rivers using
coastal shipping and inland waterways instead of rail or road.
The Origin-Destination study carried out as part of Sagarmala project estimates the
potential to save around INR 35,000-40,000 Crores per annum by optimizing logistics flows
for key commodities by 2025. Four key initiatives could drive these savings:

1. Coastal shipping to carry about 230-280 MMTPA from current and planned
capacities across coal, cement, iron and steel, food grains, fertilizers, POL
(estimated INR 21,000-27,000 Crores saving by 2025)

2. New coastal capacities for bulk commodities (steel and cement) of 80-100 MMTPA
(estimated INR 5,500-6,500 Crores saving by 2025)

3. Reduced time to export containers by 5 days (estimated INR 5,000-6,000 Crores

saving by 2025)

4. Increase share of railways in container modal mix from current 18 percent by 2025
leading to a saving of around 2,000-3,000 INR crores.

Water currently contributes less than 6 percent to India’s modal mix. China uses its
inland waterways to transport raw material and finished goods between Eastern and
Western provinces; water contributes 24 percent to China’s freight modal mix. Australia
carries 17 percent of goods through coastal shipping. In Germany, 11 percent of goods are

37
moved through inland waterways and coastal shipping. Therefore there is a strong
economic case for coastal movement for most of the key commodities.

The Government of India is contemplating development of the Vizag Chennai

Industrial corridor to give an impetus to the industry with a view to attain the ‘Make in India’
status. Further during the recent budget of the Government of India, several measures are
contemplated to promote MSMEs Micro Small and Medium Enterprises. Further the
PCPIR in the Kakinada region is being pursued actively.

Visakhapatnam is strategically positioned to serve large areas in the hinterland of

the country through coastal shipping. Coal, Steel and fertilizer can be major commodities
to/from Visakhapatnam in case coastal shipping revolution takes place in the country.

 Coastal volumes of POL is expected to reach 7.5 MTPA by 2025

 Coastal shipment of thermal coal is projected to grow to ~4.3 MTPA by 2020, 5

MTPA by 2025 and 5-6 MTPA by 2035

 Currently ~8 MTPA of iron ore and pellets are moved coastally through
Visakhapatnam

 There is a potential for coastal shipping of ~2 MTPA of fertilizer from Andhra

Pradesh to West Bengal, Tamil Nadu and Gujarat via Visakhapatnam port by 2025

 Nearly 1.5 MTPA of steel can be coastally shipped from RINL, Visakhapatnam to
demand states of Maharastra, Gujarat and Tamil Nadu by 2025

 The new opportunities possible via coastal shipping at Visakhapatnam are

estimated to be 3.69 MTPA by 2020, 4.66 MTPA by 2025 and 7.41 MTPA by 2035.

 Government of India has recently relaxed Cabotage restrictions facilitating coastal

movement of container cargo by foreign flag vessels

38
5.2.2 Coastal Cargo Projections – Master Plan (AECOM)

Visakhapatnam is strategically positioned to serve large areas in the hinterland of

the country through coastal shipping. Coal, steel and fertilizer can be major commodities
to/from Visakhapatnam in case coastal shipping revolution takes place in the country.

Fertilizers: There is a potential for coastal shipping of ~2 MTPA of fertilizer from Andhra
Pradesh to West Bengal, Tamil Nadu and Gujarat via Visakhapatnam port by 2025.

Steel: ~1.5 MTPA of steel can be coastally shipped from RINL, Visakhapatnam to demand
states of Maharashtra, Gujarat and Tamil Nadu by 2025.

Master Plan study indicates that, on account of market economics in terms of saving
in logistic cost led by optimisation of modal mix there will be new potential for coastal
cargo. In addition to the existing volumes of coastal cargo, the projected volumes are as
under:

New opportunities possible via coastal shipping

(MMTPA)
Commodity 2020 2025 2035
Steel (Loading) 1.15 1.54 2.75
Steel (Unloading) 0.08 0.11 0.20
Cement (Loading) 0.01 0.02 0.03
Fertilisers (Loading) 1.68 2.05 3.03
Fertilisers (Unloading) 0.17 0.21 0.31
Food Grains (Loading) 0.57 0.69 1.02
Total 3.66 4.62 7.34

The coastal opportunity identified is contingent on a number of enablers like last

mile connectivity, availability of handling infrastructure at the ports, rationalization of port
charges, availability of aggregators for different commodities wherever individual parcel
sizes are small.

39
 6. CRUISE-CUM-COASTAL CARGO TERMINAL PROPOSAL

6.1 Design Vessel Template

In view of the requirement to develop a Cruise Terminal, keeping in view the

promising outlook and as per the directions of the Government, the existing channel berth
location in the outer harbor is identified for development into a Cruise -Cum -Coastal Cargo
Terminal.

The existing Channel Berth of 130 meters in the outer harbor is developed in the
1980s as a shallow draft berth with a permissible draft of 8 meters. The terminal is planned
at 50m away parallel to the dredge limit line towards landside duly matching with the
existing channel berth area, for a overall length of 330m and width of 25m to accommodate
300m LOA, 36m Beam and 8.5m draft vessels.

The design vessel template available in the report “Preparation of Action Plan for
Development of Cruise Tourism in India” prepared by the Consultants engaged by IPA is
as under:

40
6.2 Advantages of Channel Berth Location

Development of Cruise-cum-coastal cargo Terminal is chosen in the Outer Harbour

at existing Channel Berth location in view of the following advantages:

 Simpler approach

 Cleaner area as all the berths in the outer harbour are fully mechanised

 No cargo stacks are in the outer harbour

 Berth is directly connected to the road along the beach into the city

 Highly secure

6.3 Features of Cruise Terminal

 A berth of 180 m length

 Four mooring dolphins – two each on either side of the berth to make a total
length of 330 meters

 Back up area 15,000 sq.m.

 A terminal building of 2,000 sq. mtrs. with all amenities

 Adequate parking space

 Excellent road connectivity

6.4 Technical Details

A) Details of the existing Channel Berth:

The 130m length existing berthing structure consists of RCC. M: 30 Piles of

1000mm dia and connected by means of main beams and secondary beams
under which a RCC deck slab imparting considerable rigidity to the entire
structure. In order to accommodate various marine fixtures, a facia wall is
provided with RCC M-30 along the length of the berth.

41
B) Development of new berth :

The proposed structure is planned at the existing channel berth to accommodate

300m LOA, 36m Beam and 8.5m draft vessels into the Inner channel of Outer
Harbour of VPT.
It is proposed to construct new berth of 180m length and 2nos of mooring
dolphins on either side with a total length of 330m duly at the existing berth with
an offset of 50m towards landside parallel to the existing dredge limit line
(drawing enclosed).

C) Details of the Proposed Berth:

Berthing Structure:

i) The proposed structure consists of RCC. M: 30 T-shaped Diaphragm walls at

front side and Rectangular Anchor Diaphragm walls at rear of 600mm thick and
connected by means of main beams and secondary beams under which RCC
deck slab imparting considerable rigidity to the entire structure. In order to
accommodate various marine fixtures, a facia wall is provisioned with RCC M-30
running all along the length of the berth.
ii) Dredging in front of berth from the present depth of (-)9.00m to proposed
dredge level of (-)12.10m CD.

Backup Area:

The backup area is having 15,000 m2 behind the berth.

The backup area envisages development of a Building of 2,000 m2 with air

conditioning and CCTV facility to accommodate immigration, customs, etc. The
entire backup area proposed to be developed with internal roads, landscaping,
sewer, water supply and drainage system and provided with area illumination.

During the months of November to March the terminal will be operated as Cruise
Terminal and during the months of April to October the Berth will be operated as
Coastal Cargo.
42
D) Alternative site / designs for the proposed cruise terminal / facility:
Being operated as cruise terminal also the only site selected for this
facility is at existing channel berth near outer harbour which is free from
commercial operations and as such there is no other location envisaged / found
suitable for the proposed cruise terminal.
The design of the proposed berth for the cruise-cum-coastal cargo
terminal i.e. with diaphragm walls, piles, beams and slab components furnished
by IIT-Madras, Chennai based on the geo-technical data available near to the
site is taken as basis. The geo-technical data is enclosed in the report.

43
 7. SITE INFORMATION

a) Climate and Meteorological Conditions:

General:

Visakhapatnam has a tropical climate with little variation in temperature throughout

the year. May is the hottest month with average temperatures around 32°C (90°F), while
January is the coolest month with average temperatures near 23°C (73°F). As the city is
located on the Bay of Bengal, the humidity remains high throughout the year. The total
annual rainfall is around 955 mm (38 inches), the bulk of which is received during the
South-West monsoon. October is the wettest month with around 204 mm (8 inches) of
rainfall.

The climate of this region is governed by its location in the tropics and the monsoons.
The port is located in the South-East coast of the Bay of Bengal, which is characterized by
the recurring seasonal monsoons. The monsoons divide the year into four seasons
namely:

i) The North-East monsoon from end of November to end of February with

predominantly North Easterly winds; cyclones are frequent during November.

ii) The pre-monsoon period is from March to May, usually the beginning of the hottest
period of the year, when the winds shifted in South-Westerly direction, cyclones are
frequent in the month of May.

iii) The South-West monsoon period falls between May and October with
predominantly South-Westerly winds, cloudy weather and frequent rains.

iv) The post-monsoon period is from middle of October to end of November with
variable weather and witnesses cyclones with relatively greater frequency. The
climatic division is of course not absolute, and there is some overlap between
seasons.

The table given below gives a comprehensive detail on the climate of

Visakhapatnam:

44
 CLIMATOLOGICAL TABLE

PERIOD: 1951-1980

Mean Mean
Mean Mean Number of days with
Temperature(°C) Number
Total
Month of
Daily Daily Rainfall
Rainy HAIL Thunder FOG SQUALL
Minimum Maximum (mm)
Days
Jan 18.0 28.9 11.4 0.5 0.0 0.2 0.5 0.0
Feb 19.9 31.3 7.7 0.5 0.0 0.5 0.2 0.1
Mar 23.0 33.8 7.5 0.5 0.0 1.8 0.1 0.1
Apr 26.1 35.3 27.6 1.2 0.0 5.0 0.0 0.8
May 27.7 36.2 57.8 3.0 0.0 8.6 0.1 2.1
Jun 27.3 35.3 105.6 6.4 0.0 10.2 0.1 2.3
Jul 26.1 32.9 134.6 8.7 0.0 6.9 0.0 1.1
Aug 26.0 32.7 141.2 9.3 0.0 8.0 0.0 1.5
Sep 25.6 32.5 174.8 9.9 0.0 11.4 0.0 1.2
Oct 24.3 31.7 204.3 8.7 0.0 8.2 0.0 0.9
Nov 21.6 30.4 65.3 2.7 0.0 1.5 0.0 0.2
Dec 18.6 28.9 7.9 0.6 0.0 0.0 0.0 0.0
Annual 23.7 32.5 968.8 52.0 0.0 62.3 1.0 10.3
Source: Indian Meteorological Department

b) Temperature:

The annual mean maximum temperature is 30°C and the annual mean minimum
temperature is 24.3°C. The highest temperature recorded in May and June and the
lowest in December and January. In the recent past, the highest temperature
recorded was 44°C in the month of June 2012 which is near the previous high of
45.4°C recorded in 1994 and the lowest temperature recorded was 11.2°C in
January 2012, which is the lowest recorded in last 50 years.

c) Relative Humidity:

The humidity is comparatively high and fairly uniform throughout the year. The
annual mean value of daily relative humidity recorded varies from 72% to 76%.
Highest recorded value is 81% and lowest recorded value is 64%.

45
d) Rainfall:

The rainy season persists during the South-West monsoon and also during North-
East monsoon. September and October are the wettest months of the year with an
average rainfall of 167.3mm and 259.3mm respectively. The average annual rainfall
is about 973.6mm. The average annual rainfall is about 973.6mm. The average
number of rainy days per year is 50.

e) Wind:

The predominant direction of wind is South-West and North-East for most of the
time. The maximum wind speed recorded is 110KMPH.

f) Cyclones:

Cyclones are common to occur in the Bay of Bengal. Average number of cyclones
occurring at Vishakhapatnam is 3 to 4 per year. Cyclonic storms and depressions
occur with greatest frequency is August, October and November generally.

g) Visibility:

Visibility is good throughout the year as fog is infrequent at sea in all seasons.
Reduction in visibility is mostly due to heavy rainfall during the South-West
monsoon. The highest monthly average duration recorded of fog is 0.1 day in some
months from December to May.

h) Oceanographic Data:

i) Tides

The tide levels from Chart Datum at Visakhapatnam Port are given below
Highest High Water Level- (+) 2.38 m
Mean High Water Level Springs-(+) 2.06m
Mean High Water Level Neaps-(+) 1.50m
Mean Sea Level- (+) 0.80 m
Mean Low Water Springs- (-) 0.16m
Mean Low Water Neaps-(+) 0.50m

46
Chart datum-(-) 0.00
Lowest Low Water Level- (-) 0.55 m

ii) Waves

Deep water waves: the predominant direction of waves during April to September
(South West monsoon period) is South-West whereas, during the period from
November to February (North-East monsoon period), the predominant direction is
North East. The months of March and October are transition periods with no definite
predominant direction for the wave approach. Highest wave occurred during April to
September. The deep-sea waves with highest and lowest periods frequent from
South-West quadrant. Waves of over 1.50m height may be expected for 20% of the
time. Wave periods of over 7 seconds may be expected 14 % of the time.

Shallow water waves: from March to October principal wave direction is

predominantly from South-South-East. The predominant wave period is between 8
to 10 seconds. During the remainder of the year, wave direction is principally from
the East and practically all wave directions are confined to the sector between East-
North-East and South-East.

Although waves of over 1.50m in height may occur predominantly in South-Westerly

direction for 22% of time outside the outer harbour, the location of the proposed
development is inside the Inner Harbour which is very well protected from waves
outside of the Outer Harbour. Therefore, no wave disturbance is expected at the
proposed site.

iii) Currents
From February to June, off shore current flow towards North East. From August to
December, currents flow towards South-West. The velocity ranges from 0.5 to 1.0
knot. At Visakhapatnam coast, currents are neither related to wind or to tides in any
appreciable way. The determining factor for the direction of current is the direction
of predominant wave.

47
 iv) Littoral drift:

Littoral drift of the order 0.56 million m3 from south to north during the south west
monsoon and of the order of 0.10 million m3 from north to south during the

north east monsoon, resulting in a net northerly drift of the order of 0.50 million m3
is known to exit annually at Visakhapatnam a sand trap is incorporated in the
layout of the outer harbor on the lee side of the south breakwater to facilitate
collection of the sand drift. During annual maintenance dredging the sand from

the sand trap is dredged and about 0.40 million m3 of sand is annually placed on
the shore north of the outer harbor.

i) Geo technical Conditions

The results of soil investigations carried out in the vicinity of the proposed Channel
Berth (near General Cargo Berth) indicates that, the subsurface profile up to
(-)19.00m generally consists of Sand with shell fragments. Stiff Black clay mixed
with fine sand is encountered between the (-) 19.00m to (-) 32.50m depth and
thereafter layer of weathered Rock encountered.

48
49
 8. CAPITAL COST ESTIMATES AND IMPLEMENTATION SCHEDULE

8.1 Block Estimate:

Block estimate for construction of cruise-cum-coastal cargo terminal at Channel

Berth area in Outer Harbour of Visakhapatnam Port:

Sl.No. Description Rate Unit Amount

(Rs.Crores)
1. Main Berth and Mooring 51.00
Dolphins

2. Dredging 7.00

3. Strengthening of Existing 9.00

Channel Berth

4. Terminal Building & Back up 10.00

Area

Total 77.00

8.2 DETAILED ESTIMATES:

Sl. ITEM Quantity Rate Unit Amount

(Rs.in
No. Lakhs)

1. MAIN BERTH & M.D

1 Mild Steel Liners 1339.90 T 69615 T 932.77

2 Boring of Piles 7415 m 6200 m 459.73

3 Chipping of Pile heads 214 nos 6800 No 14.55

4 Dynamic Pile Load Test 4 nos 250000 No 10.00

5 RCC Bored Piles 6487.80 m3 12328 m3 799.82

6 RCC Pile Caps 123.37 m3 12328 m3 15.21

7 RCC Main Beams 1885 m3 12032 m3 226.80

50
8 RCC Deck Slab 2404 m3 12032 m3 289.25

9 PCC Wearing Coat 350.90 m3 11341 m3 39.80

10 Reinforcing Steel 2390.40 T 72592 T 1735.24

11 Expansion Joints 60 nos 1500 m 0.90

12 Fenders 10 nos 2700000 No 270.00

13 Bollards 14 nos 225000 No 31.50

14 Progress Photographs 50 sets 350 set 0.17

15 Coloured Video film 1 set 125000 set 1.25

16 Rock Bund 18200 m3 1000 m3 182.00

17 Earth Work 1463 m3 300 m3 4.39

18 Filling with gravel 375 m3 600 m3 2.25

19 Ex-200 Excavator 260 hrs 1870 hrs 4.86

20 Transportation of Debris 8888 m3 155.64 m3 13.83

21 Marine Fixtures (LS) 60.00

Total = 5094.32

Total 51.00
crores

2. DREDGING:

(a) Soft Soil 124800 m3 400 m3 499.20

(b) Rock Cutting 6320 3000 m3 189.60

688.80

Total 7.00
crores

51
Sl. ITEM Quantity Rate Unit Amount
(Rs.in
No. Lakhs)

3. STRENGTHENING OF 130 m 685000 m 890.50

EXISTING CHANNEL BERTH

Total Rs. 9.00

crores

4. TERMINAL BUILDING & Amount

BACK UP AREA (Rs.in
DEVELOPMENT Crores)

a) Development of backup area 12,000 m2 2000 m2 2.40

b) Cost of building 2,000 m2 16000 m2 3.20
1x2000=2000 m2
c) Air Conditioning 14.70 t 50000 Ton 0.07
√(2000x10.76)/10=14.70
Tonnes
d) CC TV System 15,000 m2 300 m2 0.45
e) Fire fighting 15,000 m2 750 M2 1.13
f) Internal water supply (4% over 0.10
building cost)
g) External services (5% over 0.12
building cost)
h) Internal electrical Installations 0.22
(9% over building cost)
i) Power systems etc., (8.08% 0.19
over building cost)
j) Internal roads and passenger 3,000 m2 2500 m2 0.75
gang ways (20% of backup
area)
k) Pavement for Car parking area 2500 m2 2000 m2 0.50
l) Construction of sewer system 15,000 m2 110 m2 0.17
m) Water supply system 15,000 m2 80 m2 0.12
n) Storm water drains 15,000 m2 85 m2 0.13
o) Landscaping & beautification 15,000 m2 80 m2 0.12
p) Street lighting 15,000 m2 165 m2 0.25
Total = 9.20
Or say Total 10.00
crores

52
IMPLEMENTATION SCHEDULE:

18 months

1) 2020-21 (6 months) : Rs. 15 crores

(Construction of berth)

2) 2021-22 (12 months) : Rs. 62 crores

(Construction of berth and strengthening of existing berth, Dredging,

Terminal building and back up area development)

53
8.3 Location and drawing of proposed terminal

54
 9. PROJECT FINANCIALS

9.1 Assumptions:

 The review carried out by the consultants engaged by IPA for Development of
Cruise Tourism in India is relied upon to determine the representative Cruise
Vessel. The analysis considered three different sizes of vessels i.e., large, medium
and small.

 Typical passenger vessel (Saga Sapphire – small category) of 37012 GRT, 199.6
meters LOA and passenger capacity of 752 is considered with 24 hours average
stay of vessel and 500 number of passengers embarking/disembarking per vessel.

 Typical size of cargo vessel likely to be handled at the terminal is of 150 metres
LOA, draft 10 metres, 12,200 GRT, parcel size of 12,500 tonnes with a
discharge/loading rate of 2,000 tonnes per day.

9.2 Phasing of expenditure

Development of the project is estimated to be completed in 18 months after

obtaining Environment Clearance from Govt. of India and expected to be operational by
March 2022. The phasing of expenditure is as under:

1) 2020-21 (6 months) : Rs. 15 crores

(Construction of berth)

2) 2021-22 (12 months) : Rs. 62 crores

(Construction of berth and strengthening of existing berth, Dredging,

Terminal building and back up area development)

Expenditure towards Operation and Maintenance is considered as 1% of

capital cost

9.3 Revenue

 Revenue from Cruise vessels is as per MoS direction vide SW-15011/2/2016-MG

dated 03.11.2018. Composite charge for a cruise call is $ 0.35 per GRT for first 12
hours stay across all major ports. For the period of stay exceeding 12 hours, the
actual SoR is applicable at VPT.

 Revenue from coastal cargo will be in the form of port dues, pilotage, berth hire and
wharfage

55
9.4 Project Viability

The project facility has a life period of 50 years. Financial analysis is carried out
over a project period of 15 years duly considering the residual value at the end of 15 th year.

Financial IRR of the project : 3%

Financial IRR of the project with 50% as

grant under Central Sector Scheme from
the Ministry of Tourism to promote tourism : 10%

The project will have spin off benefit in terms of foreign exchange earnings, creation
of employment which has the potential to transform Visakhapatnam as an ideal tourism
spot on the East Coast.

56
 Financial IRR with a Capital expenditure of Rs.77 Crores without grant
(Rs.Crores)
Capital O&M Total Cargo Cruise Residual Total Net
Year Year expndtr Cost Cost Revenue Revenue Value Revenue Flow
2020-21 1 15 0 15 0.00 0.00 0.00 0.00 -15.00
2021-22 2 62 0 62 0.00 0.00 0.00 0.00 -62.00
2022-23 3 0 0.77 0.77 2.67 0.59 0.00 3.25 2.48
2023-24 4 0 0.77 0.77 2.67 0.71 0.00 3.37 2.60
2024-25 5 0 0.77 0.77 2.67 0.82 0.00 3.49 2.72
2025-26 6 0 0.77 0.77 2.67 0.94 0.00 3.61 2.84
2026-27 7 0 0.77 0.77 2.67 1.06 0.00 3.72 2.95
2027-28 8 0 0.77 0.77 2.67 1.18 0.00 3.84 3.07
2028-29 9 0 0.77 0.77 2.67 1.41 0.00 4.08 3.31
2029-30 10 0 0.77 0.77 2.67 1.65 0.00 4.31 3.54
2030-31 11 0 0.77 0.77 2.67 1.88 0.00 4.55 3.78
2031-32 12 0 0.77 0.77 2.67 2.12 0.00 4.78 4.01
2032-33 13 0 0.77 0.77 2.67 2.47 0.00 5.13 4.36
2033-34 14 0 0.77 0.77 2.67 2.82 0.00 5.49 4.72
2034-35 15 0 0.77 0.77 2.67 3.29 0.00 5.96 5.19
2035-36 16 0 0.77 0.77 2.67 3.76 0.00 6.43 5.66
2036-37 17 0 0.77 0.77 2.67 4.23 53.9 60.80 60.03
IRR 3%

Financial IRR with a Capital expenditure of Rs.77 Crores with 50% grant
(Rs.Crores)
Capital O&M Total Cargo Cruise Residual Total Net
Year Year expndtr Cost Cost Revenue Revenue Value Revenue Flow
2020-21 1 7.5 0 7.5 0.00 0.00 0.00 0.00 -7.50
2021-22 2 31 0 31 0.00 0.00 0.00 0.00 -31.00
2022-23 3 0 0.77 0.77 2.67 0.59 0.00 3.25 2.48
2023-24 4 0 0.77 0.77 2.67 0.71 0.00 3.37 2.60
2024-25 5 0 0.77 0.77 2.67 0.82 0.00 3.49 2.72
2025-26 6 0 0.77 0.77 2.67 0.94 0.00 3.61 2.84
2026-27 7 0 0.77 0.77 2.67 1.06 0.00 3.72 2.95
2027-28 8 0 0.77 0.77 2.67 1.18 0.00 3.84 3.07
2028-29 9 0 0.77 0.77 2.67 1.41 0.00 4.08 3.31
2029-30 10 0 0.77 0.77 2.67 1.65 0.00 4.31 3.54
2030-31 11 0 0.77 0.77 2.67 1.88 0.00 4.55 3.78
2031-32 12 0 0.77 0.77 2.67 2.12 0.00 4.78 4.01
2032-33 13 0 0.77 0.77 2.67 2.47 0.00 5.13 4.36
2033-34 14 0 0.77 0.77 2.67 2.82 0.00 5.49 4.72
2034-35 15 0 0.77 0.77 2.67 3.29 0.00 5.96 5.19
2035-36 16 0 0.77 0.77 2.67 3.76 0.00 6.43 5.66
2036-37 17 0 0.77 0.77 2.67 4.23 53.9 60.80 60.03
IRR 10%

57
 10. ENVIRONMENTAL CONCERNS IN SPECIFIC TO THE PROJECT

Since the project consist of only a passenger cruise facility and not a processing plant or
industrial unit as such, the usual sources of environmental pollution such as emission of
smoke and toxic chemical, affluent discharge, spoilt disposal etc. Do not come into the
picture at all. Visual or scenic value of the area also will not be distributed in any way. The
berth area would have in any case been occupied by a number of safety provisions with
latest technology to arrest any mishap in case of emergency.

The present proposal involves the following major activities.

1. Excavation of land beyond existing berth
2. Strengthening of Channel berth
3. Installation of Marine Fixtures

1.1. The Major environmental concerns

The Major environmental concerns identified in specific to the proposed project during the
construction phase are as listed below:

A. Air pollution

1. Emission of air borne fugitive emissions generated while handling the

construction and demolition material during the construction and demolition
activities and stock piles
2. Noise pollution due to the machinery involved.
B. Marine water pollution

1. Marine piling involving disturbance to the seabed increasing the levels of

suspended particles showing the impacts on marine life
2. Obstruction due to the construction of berthing structures against the natural
flow
3. Dredging and disposal of sediments disturbs the marine life due to dredging
equipment.
C. Land pollution

1. Land based Bored concrete pile involving machinery for boring and disposal
2. Land clearance, excavation, land filling

58
1.2. Major concerns during Berth operation phase
1. Handling of the passenger cruise in the port may influence the environment in
different ways, through air-borne dust generation and noise, brought out by
unloading / loading operation.
2. The leakage and spillage is expected due to rupture of pipeline etc. for which
contingency plans already in existence to combat in the port. There are
existing facilities available to cater to such leakage and spillage.
3. Construction of a new jetty leads to dredging to required depth. The dredged
material will be about 3 million cubic m.
4. The method of dredging shows impacts on Marine life due to dredging
sediment pollution and probable heavy metal toxicity.

Secondary causes having impact on the environment can be one or more causes arising
out of the following acting either separately or in combination.

 Excessive wind force

 Drainage or rainfall run-off from potentially contaminated area

1.3. Mitigation Plan

A detailed study of Environment Impact assessment w.r.t. air quality, water quality,
sediment quality, soil quality, biological quality, socio-economic environmental quality etc.,
in and around the port facility shall be carried out based on baseline data. Detailed study is
also shall be carried regarding expected impact on different categories of terrestrial,
aquatic as well as benthic flora and fauna during construction and operation phase strictly
adhering to the standard TOR issued by MoEF&CC for Ports and Harbours.

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1.4. General outline of the plan

1.4.1. Air Pollution

There shall be no Considerable air pollution except few fugitive emissions from
construction material stockpiles and during construction.

Wetting of construction material placed in a confined area duly minimizing the scattering of
material can considerably reduce the air borne dust.

1.4.2. Noise
The design of the entire system will be such that noise generation is minimised at all points
of the system. Noise level of each component of the system such as drives etc. Will be
limited to 80 db measured at a distance of 1.5m from the particular component. The noise
level of complete subsystems will also be controlled.

1.4.3. Fire Fighting

A dedicated firefighting system is proposed for the new jetty. The system consist of
water/foam monitor system, ground monitor, jumbo curtain system, hydrants, foam
induction system, fire alarm, public address and fixed fire extinguishers, gas detection
system, existing main and standby pumps will be used to maintain the water demand at
required pressures.

1.4.4. Sources of raw materials and consumption:

1. The construction material as per requirement shall be obtained from Approved
mines alone.
2. Water shall be obtained from Local Municipal authority for construction,
operational, cleaning and domestic activities i.e from the existing water supply
sources inline with the demand.
3. Electric power And Fuel shall be obtained from local approved sources and
State Electricity board.

Wherever there is possibility of resource conservation is possible w.r.t. water, and energy
shall be employed with a standard EMPS prepared while conducting detailed EIA study.

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1.4.5. Pre-Construction Activities
The following activities are to be completed prior to undertaking actual construction of the
respective works:

 Clearance / No objection of statutory/ competent authorities for construction of the

project
 Rapid E.I.A study and corresponding E.M.P
 Sub soil investigation around the proposed jetty location
 Siltation Model study
 Topographic survey of Channel Berth
 Detailed engineering and drawing for works under different discipline
 Tendering, evaluation, approval of competent authority & award

1.5. Applicable Acts and Regulations:

Construction of Passenger Cruise terminal facility is a major development that would
attract central, state as well as international environmental regulations. The applicable acts
/ regulations for this proposed site has briefly discussed below.

 The Environment (Protection) Act, 1986 and the Environmental Impact

Assessment Notification, 1994 as Revised September 2006: Under this act any
development project listed in the Schedule I of the EIA Notification require
environmental clearance from Ministry of Environment and Forests (MoEF)
government of India and state pollution control board. This act is applicable to
proposed port project as port development project comes as item III of the list
specified in the Schedule I of EIA Notification.
 Coastal Regulation Zone (CRZ) Notification, 1991: This notification is made for
regulating the development activities within the coastal regulation zones (area within
the 500 m range towards landside from high tide line). This act is applicable to this
project as the proposed development is within the 500 m from the coastline. CRZ
map in the location should be obtained from the approved agencies. NIO and Anna
University are two of the approved agencies. The consultants foresee no immediate
difficulties in obtaining CRZ clearance for the proposed port site.

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 The Forest (Conservation) Act, 1980: This act pertains to the cases of diversion of
forest area for non-forestry use in the country. The project area doesn't have any
forest area. However for the cutting of trees for site clearance may require
clearance from the forest department. This will also require compensatory a
forestation scheme to compensate loss of trees.
 The Wild Life (protection) Act, 1972: No clearance is required as the proposed
project area is not located close to any national park or sanctuary.
 The Motor Vehicles Act, 1988: This act empowered the State Transport Authority
(usually the Road Transport Office) to enforce standards for vehicular pollution and
prevention control. The authority also checks emission standards and issues
Pollution under Control certificate (PUC). This act is applicable to this project as
vehicles and machinery will be used in the construction and operational stage of this
project.
 The Ancient Monuments and Archaeological Sites and Remains Act, 1958:
This Act is applicable for the site/remains/ monuments that are protected by ASI.
Ancient monuments are not found in the vicinity of the proposed port.
 Hazardous Wastes (Management and Handling) Rules, 1989: Rule 3(14) (a) of
this act defines ballast water from ships into hazardous waste category. Therefore
port authorities will require "No Objection Certificate" from State Pollution Control
Committee for handling, recycling and transportation of ballast water and other
hazardous waste produce from the port premises.
 Merchant Shipping Act, 1958: Rule 44 of 1958 delineates that any kind of marine
pollution from shipping operation beyond 5 km from coastline will be regulated by
Merchant Shipping Act. National Shipping Board is the responsive authority to
regulate the activities and look for compliances. This act is applicable for this
project.

 MARPOL Convention, 1973/78: This international convention is responsible for the

preventing pollution of the marine environment by operational or accidental
discharges of oil, noxious liquid substances, sewage, garbage and emissions from
the ships.

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  Ballast Water Management, 2004: This convention is for preventing the
introduction of unwanted organisms and pathogens from ship's ballast water and
sediment discharges. Port authority is responsible for regulating the discharge of
ballast water in the coastal areas.

 State Level Legislation and Other Acts: In addition, with respect to hygiene and
health, during the construction period, the provisions as laid down in the Factories
Act, 1948 and the Building and Other Construction Workers (Regulation of
Employment and Conditions of Service) Act, 1996 would apply. The provisions of
the Chemical Accidents (Emergency Planning, Preparedness and Response)
Rules, 1996 would also apply during the construction and the operation periods.

In summary the mandatory clearances from Government of India (GOI) and Government of
Andhra Pradesh required for this project are given below: However this is not limited to the
following clearances alone.

i. Environmental Clearance from the MoEF.

ii. Environmental Clearance from the MoEF under CRZ Regulation.
iii. No Objection Certificate (NOC) from the Andhra Pradesh Pollution Control
Committee.
iv. Clearance from State Forest Department for cutting of trees for site clearance
v. Clearance from the Andhra Pradesh Pollution Control Committee under the Air Act,
the Water Act and the Cess Act, if stipulated by the State Pollution Control Board
while giving the NOC.
vi. No Objection Certificate from Andhra Pradesh Pollution Control Committee for
public hearing.
vii. "No Objection Certificate" from the Andhra Pradesh Pollution Control Committee for
handling, recycling and disposal of hazardous waste produce from the port
operation.

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1.6. Summary of Significant Environmental Impacts from the Port's Development:

The proposed development of the passenger Cruise terminal facility at the proposed site
has been planned to ensure that no significant environmental impacts would impinge on
the local environment of the coastline, its surroundings and the coastal /river setting. A
number of issues at this preliminary stage have been looked into about the port's
development and its impact and these are given below.

1. Effect on local Fishermen.

The nearest fishing activity is fairly away from the port site. Terminal Facility construction
will not disrupt fishing in the vicinity in which they are being carried out but these
operations are for a short duration and only affect a small part of the long coast available to
fishermen at any one time.

2. Mangroves & River estuary

Along the proposed site, as per or site visit and observation, mangroves are not visible in
the vicinity of the port. However this issue shall be studied in detail during the EIA studies.

4. Noise and Dust.

Noise and dust have been said to be issues relating to the port's development. There is
little development with a 1km radius of the main port works however there are some
settlements. During construction, some noise will be generated by piling and other
machinery and trucks and other equipment, but the construction contracts will require all
equipment to be properly silenced and muffled.

5. Pollution.

Port facilities shall be designed to such that to treat all barge, bilge water and all solid and
liquid waste created by the port.

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1.7. Pollution Caused due to the dismantling of existing structures:

The emission of dust can be produced during the dismantling of existing structure. The
other source of pollution is noise emanating from various machinery and equipment.

1.8. The guidelines for operating the Cruise terminal:

The Cruise Shipping Policy of the Ministry of Shipping was approved by the Government of
India on 26th June, 2008. The objective of the policy is to make India as an attractive
cruise tourism destination with the state-of-the-art infrastructural and other facilities at
various parts in the country; to attract the right segment of the foreign tourists to cruise
shipping in India; to popularize cruise shipping with Indian tourists.

The following important steps have been taken by the Government to develop Cruise
tourism in the country:

1. A Task Force was constituted in November, 2015 with Secretary (Tourism) as the
Chairman and Secretary (Shipping) as the Co-chairman for coordinated efforts to
create an enabling eco-system for the development of cruise tourism in India.

2. Foreign flag vessels carrying passengers have been allowed to call at Indian ports
for a period of 10 years with effect from 6th February, 2009 without obtaining a
licence from Director General of Shipping. This facility has been extended further
for a period of 5 years i.e. up to 5th February, 2024.

3. Standardized Operating Procedures (SOPs) for cruise vessels have been revised
and operationalised i.e. November, 2017 for uniform, predefined processes to be
observed by all major ports.

4. E-visa facility has been extended to five sea ports namely Mumbai, Goa,
Mangalore, Cochin and Chennai. Immigration counters have been set up at five
major ports visited by cruise ships.

5. Cruise tourists arriving with e-visa have been exempted from the requirement of
biometric enrolment for a period of three years i.e. till 31.12.2020 to facilitate
expeditious immigration clearance.

6. The port charges have been reduced and all major ports now charge a uniform
single rate of $0.35 per GRT for first 12 hrs of stay w.e.f 3rd November, 2017 and
will remain in force for a period of three years.

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7. The ports do not levy any priority/ousting/shifting charges for berthing the cruise
vessel.

8. Walk-in berthing/preferential berthing to homeport cruise without any extra charge.

9. To address manpower, coordination and logistic issues for handling cruise vessels
at ports, Port Level Committees have been formed under the respective Chairmen
of the above mentioned Major Ports to facilitate seamless handling of cruise ships
and passengers.

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 DRAWINGS

Location and drawing of proposed terminal

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