Axis Bank commits financing to the Vizag Multipurpose Terminal VISAKHAPATNAM

26 July 2024

Vizag Multipurpose Terminal Pvt Ltd, an equal joint venture between Indian Potash Ltd and J M Baxi Ports & Logistics Ltd, has successfully secured funding from Axis Bank to complete the financing for mechanising and running a multipurpose cargo berth at the state-owned Visakhapatnam Port for 30 years.

The project's financial closing was completed significantly earlier than the Visakhapatnam Port Authority had anticipated.

The only business in India that manages fertilisers year-round at all ports is Indian Potash Ltd, the second-largest buyer of fertilisers on the international market. For the project, the J M Baxi Ports & Logistics-Indian Potash team submitted the highest royalty of Rs 55.44 per tonne, winning the Visakhapatnam Port Authority's tender.

With private funding of Rs201 crores, the contract at Visakhapatnam Port entails mechanising the port's East Quay berth 7 (EQ7) on the eastern coast for handling dry bulk cargo, including fertilisers. 3.61 million tonnes (mt) of freight can be moved through the EQ7 berth annually once it is mechanised.