Vizag port to increase its cargo capacity

Visakhapatnam: Visakhapatnam port has handled 62.36 million tonnes (mt) of cargo till date this fiscal, against 62.110 mt during the corresponding period last year, but the port may not achieve the 65 mt target set by the Ministry this year.

It may fall short by one million tonnes, according to port sources.

Sluggish performance
The port, which was in the first position for seven successive years, slipped to second last year (2007-08), behind Kandla, and the trend is continuing this year too.

Several factors have contributed to the somewhat sluggish performance of the port this year such as the impact of the global economic recession, the commissioning of the Gangavaram port in the vicinity and the slump in iron ore exports due to a variety of reasons.

Iron ore exports
Iron ore exports, on which the port is heavily dependent, have suffered this year due to the post-Olympics situation in China and the recession. This year, the port handled 11.9 mt of iron ore against 12.38 mt during the corresponding period last year. However, there has been a slight increase in the iron ore pellets at 5.32 mt against 5.20 mt last fiscal.

Gangavaram port
The impact of Gangavaram port, which has started functioning without any formal inauguration, has also been considerable. Gangavaram, it is estimated, has handled over 2 mt till date and by the end of the month it could go up to roughly 3 mt. Rashtriya Ispat Nigam Ltd (Vizag Steel Plant) has shifted some of its cargo to Gangavaram, which is in its backyard, and the main port has suffered as a result.

In the coming years, the competition from Gangavaram port is likely to be more intense.
The commissioning of a single buoy mooring at Paradip port has taken away some of the transhipment cargo from Vizag port and the Kakinada deepwater port is also giving tough competition.

Ongoing projects
The Visakhapatnam port has taken up several projects, costing more than Rs 3,000 crore, to face these challenges. Upgradation of facilities at the outer harbour and construction of more berths, strengthening the inner harbour berths are some of the projects. They will add substantially to the port’s capacity.