After trying to resolve differences over their projections of revenue and traffic, Visakhapatnam Port Trust is all set to sign concession contract extension container terminal with Visakha Container Terminal Private Ltd in third week of December in the form PPP.

The prestigious project debated three years ago with an investment of Rs.633 crore to a gateway Visakhapatnam on the east coast for container traffic off the VCTPL finally give a letter of consent to the signing of the concession contract December 17.

A senior VPT confirmed receipt of a letter from VCTPL and told The Hindu that the decision on the date would be finalized in a few days. The letter of intent was issued by the VPT to VCTPL, a joint venture between DP World and UN Agencies India Ltd on December 30, 2013.

The VCTPL along with six other people who bought the bidding documents have been asked to submit new proposals last year due to supply low percentage of gross income per share (GRS) for VCTPL. Later, the port accepted the offer of 11.04 percent of GRS by VCTPL lone bidder.

Due to the delay in the grounding of the project, said the cost of expanding the terminal has increased from Rs.850 crore to Rs.900 crore. After obtaining all authorizations, the timeline set for completion of the project is 24 months.

VCTPL, entered into an agreement with the VPT in the PPP for the development of a container terminal in new facilities with one of the best natural air currents in the world so, has launched commercial operations on 26 June 2003 on the first phase of the project. A public hearing is also required to proceed with the expansion of the container terminal as required an investment of more than Rs.500 crores.