Kakinada Deep Water Port is planning investment for deepening the entrance channel to 16 mtr from the current 14 mtrs.

Kakinada Deep Water Port will invest Rs 650 crore by 2015. The dredging project will be completed by December 2014 after which the port can allow up to 150,000 DWT (deadweight tonnage) vessels as against current capacity of 70,000 DWT vessels.

This will also enable the port to increase its cargo handling capacity. Also, the freight charges will come down for customers, who hire larger vessels.

Meanwhile, consortiums of Shell and GAIL are setting up two LNG terminals in the port premises with an investment of about Rs 7,000 crore. Each project will have an initial capacity of five million tonne. The port expects more revenues on the back of these projects as with the availability of LNG, the region would witness a lot of industrial growth.