Vizag Port will handle highest ever cargo by joining 80 million tonne cargo club in 2 to 3 years

Continuing its growth trajectory by focusing on removing the bottlenecks to ensure faster evacuation of cargo and consolidating its position over the years as the central hub of transport and logistics on the East Coast, Visakhapatnam Port Authority (VPA) is now initiating significant measures to remove the dirty tag attached to it due to open handling of iron ore and coal in the past and earn the unique distinction as one of the premier cleanest ports in the country.

“As per the directions passed by the Ministry of Ports, Shipping and Waterways, we are not only adopting the landlord port model but also taking several eco-friendly measures to handle clean cargo like food grains, food processing products and seafood,” Dr Madhaiyan Angamuthu, Chairman of VPA, told Bizz Buzz in an exclusive interview.

He said his topmost priority is to develop the area with the active involvement of all the stakeholders, mainly the local communities adding as a responsible public entity, they want to earmark more funds for corporate social responsibility projects so as to improve the livelihood of the people living in the vicinity

VPA handled 73.73 million tonnes throughput during 2022-23 despite competition posed by the neighbouring ports. The port already has huge capacity augmentation, but due to the prolonged spell of the pandemic and economic slowdown, there was some impact. What is your projection for the near future?

In the next one or two years, we want to handle the highest-ever cargo by joining the 80 million tonne plus cargo handling club. Subsequently, our fight for improving our position and emerging as a gateway port will continue with the all-out support of the local administration, the authorities and the stakeholders and the trade.

After taking over as the VPA Chairman, what are your thrust areas?

We are taking several initiatives to follow global benchmarks. The port has a glorious history and has contributed immensely to metamorphose Visakhapatnam, a tiny fishermen township into a mega metropolis after it was made operational way back in 1933. The natural harbour with its deep draft and committed workforce are our main assets. Hence, we want to continue our contribution towards the transformation of Visakhapatnam into a vibrant city by strengthening its ecosystem in every possible manner.

How do you want to remove the dirty tag attached to VPA in the past?

We are taking significant steps to stop open handling of cargo so as to put pollution at bare minimum. We are improving the cargo profile viz. handling clean cargo like agriculture products. As per the advice made by Union Minister for Ports, Shipping and Waterways Sarbanand Sonowal, we are regularly reviewing the progress of implementing green port initiatives. The operational indicators have already started yielding rich dividends.

What are the steps taken to make VPA a world-class port?

We have ensured faster evacuation of cargo by getting rid of the bottlenecks. We have good connectivity. The Ministry is also laying emphasis on ensuring uninterrupted and hassle-free movement of cargo with last mile connectivity. Our business promotion team is working hard to attract non-polluting cargo from the huge hinterland spread over Telangana, Odisha, Madhya Pradesh, Chattisgarh. We are aware that there is competition from the neighbourhood and in future it will become stiff. Accordingly, we are gearing up to significantly improve our techno-economic and efficiency parameters.

VPA is one among the leading ports to start PPP projects. As part of developing a landlord port model, can you please give particulars on the status of PPP projects?

We are revamping the Eastern Quay-1 berth for handling multipurpose cargo at a cost of Rs347.79 crore. We are now examining the proposal of merging EQ-1 with EQ-1A berth as a single project and the same shall be put up in the board meeting for discussion. VPA is exploring the possibility of combining both berths to increase viability as both the projects for which concession agreements were signed, have been terminated due to various reasons.

We are keen on finalising bids for development and mechanisation of existing EQ-6 terminal for handling all types of cargoes at a cost of Rs66.12 crore. The concession agreement after all the clearances is expected to be signed in April 2024 to commission the berth in 15 months to handle 2.62 MMTPA.

Concession agreement for mechanisation of EQ-7 berth with a capacity of 3.61 MTPA to handle fertilizer and other bulk cargo at a cost of Rs200.99 crore was signed recently with Vizag Multipurpose Terminal Private Limited (VMTPL). The work on the project is expected to be completed by September 2025. The award was issued in favour of Indian Potash Ltd consortium with JM Baxi Ports & Logistics Ltd.

The concession agreement for revamping of the existing West Quay-6 terminal in the northern arm of inner harbour with a capacity of 5.18 MTPA at a cost of Rs88.50 crore with an upfront amount of Rs77.20 crore will be signed with Integrated Cargo Terminal Pvt Ltd (ICTPL) in the next few days. It will be completed in a year from the date of signing the agreement.

Mechanisation of WQ-7 and eight berths at a cost of Rs288.47 crore with a capacity of 6.14 MTPA is likely to be completed in November 2025. The concession agreement was signed with Visakhapatnam Multi Cargo Berth Terminal Private Ltd (VMCBTPL) on May 9. The Letter of Award has been issued to Bothra Shipping Services Pvt Ltd consortium with ArcelorMittal Projects India Pvt Ltd.

One of the prestigious projects completed by VPA is the extension of container terminal in the outer harbour by Visakha Container Terminal Pvt Ltd (VCTPL) at a cost of Rs633.11 crore. The commercial operations were taken up in March 2022. Container traffic is considered most environmentally-friendly and cost-effective.

AVR Infra Terminal Private Ltd (AVRIPL), as part of 30-year concession agreement, is operating EQ-10 berth handling liquid cargo including bio-diesel, caustic soda, chemical, POL and edible oil with an investment of Rs55.38 crore since July 2017.

The phase-I upgradation of existing Outer Harbour facility and creation of mechanised Inner Harbour facility phase-II for iron ore was made by Essar Vizag Terminal Pvt Ltd (EVTL). The award was made in 2015 at an estimated cost of Rs580.89 crore. However, a board meeting held in 2019 resolved to accept the opinion of the experts on the issue of phase-II development and to discharge the concessionaire from the phase-II obligation.

Mechanisation of coal handling facilities and upgradation of General Cargo Berth in the outer harbour to clear 2,00,000 DWT vessels was completed by Vizag General Cargo Berth Pvt. Ltd (VGCBPL) in 2013 at a cost of Rs444.10 crore.

EQ 8 and 9 are operated by Vizag Seaports Pvt Ltd (VSPL) for a long time with two Panamax compatible berths.

What are the initiatives taken to improve the stacking area?

We have awarded several contracts for construction of covered storage sheds by spending crores of rupees. As part of the national monetisation scheme, we are also giving unutilised lands for development as part of government policy.

Ever since you took over as the Chairman, you have been harping on improving the brand name of the port by handling cargoes in a mechanised environment and checking pollution. Can you elaborate steps to control dust pollution?

VPA has developed 10MW and 770KW solar power plants. Power generation started in 2016. We are taking steps to increase our solar power generation capacity to 30 MW by 2030. GHG and carbon emissions are reduced by VPA to the tune of 8.27 MT of CO2 by using solar power. Mechanisation of coal and iron ore handling has been completed through PPP mode at GCB and VSPL berths at a cost of Rs20 crore.

We have built a high-rise wall around the port area by spending Rs23 crore and built a 1,000 metre long dust barrier opposite Essar Terminal at a cost of Rs2 crore. Covered bulk cargo (coal) stacks and trucks with tarpaulin has been made compulsory. Mechanical sweeping and sprinkling of water with trucks to prevent movement of dust particles are also introduced. Truck mounted fog cannons have been purchased at a cost of Rs85 lakh and trolley mounted fog cannons bought at a cost of Rs35 lakh. Green belt has been developed around the stack-yards.

Construction of covered storage sheds is in progress by spending Rs116.04 crore. Continuous online ambient air quality is monitored at three locations. Ten MLD sewage water treatment plants are under operation and the treated water is used for a dust suppression system in the port area. Ten KLD (pre-fab) is proposed to be installed at the administrative office canteen area at a cost of Rs36 lakh. Complete mechanisation has been done in EQ-1, EQ-1A, EQ-6, EQ-7, WQ-6 and WQ-7 and 8. Modernisation of Visakhapatnam Fishing Harbour has also been taken up besides developing an international marine cruise terminal.

Running A Tight Ship

Visakhapatnam Port Authority (formerly Visakhapatnam Port Trust) came into being on the East Coast after approval of the proposal for construction of a port after the First World War by Col H Cartwright Reid of British Admiralty.

The port, which began its journey with three berths by handling 1.3 lakh tonne last fiscal, handled a record cargo of 73.73 million tonne and is gearing up to achieve a capacity of 125 million tonnes in a couple of years. The initial construction cost to make it operational was Rs3.78 crore.

The construction of the Inner Harbour was taken by the erstwhile Bengal Nagpur Railway (BNR) during 1927-33 with an aim to promote export of manganese ore from the Central Provinces. It was thrown open to ocean traffic on December 10, 1933, by Lord Willington scripting the great journey to transform a tiny place like then Vizagapatam into a mega city over the years. The port was instrumental for rapid industrialisation of the city bringing major investments in the form of Hindustan Shipyard Limited, Visakh Refinery, Coromandel Fertilizers, Hindustan Polymers and Visakhapatnam Steel Plant (VSP).

With the increase in significance of the city due to military presence after the Second World War, the city popular as Vizag and City of Destiny, quickly attracted investment in multiple sectors.