Vizag port can become gateway for Telangana

Visakhapatnam: Visakhapatnam port will be able to attract more traffic and act as a gateway for Telangana if more logistical initiatives like sound road network between Hyderabad-Visakhapatnam apart from creation of a dry port can be taken up in coming years. The panel members participating in the 'BizzBuzz Business Conclave' in the port city of Visakhapatnam opined that more container traffic is being sent to Jawaharlal Nehru Port Trust (JNPT) in Mumbai than to Vizag due to higher logistics cost being incurred on sending containers via road.

"Container traffic is an outcome of demand and supply. A port can attract more container traffic if there is more demand. To raise traffic in Vizag port, a good road network between Vizag-Hyderabad and a dry port in Telangana can go a long way. In this way, Vizag can be the gateway for Telangana," said Professor Dr George Yesu Vedha, MD & CEO of Dredging Corporation of India.

He also said that if a port handles both export and import traffic, there will be higher chances of gaining container traffic. Other speakers opine that Andhra Pradesh has a lot of potential in the ship building sector. "Shipping the most strategic sector of any nation. Despite that Indian shipping sector only holds two per cent of the ship building market globally. As compared to this, country like South Korea holds more than 40 per cent of the global ship building market," said Rear Admiral LV Sarat Babu.

"India and states like Andhra Pradesh should concentrate on building ship building clusters which will support the whole ecosystem. If the government supports creation of these clusters with financial incentives, ship building industry can generate a lot of jobs apart from supporting the local industry. The government should also give priority to domestic vessels, which will promote domestic ship building industry," said Babu.

He said that Indian Navy itself is planning to build 170 new ships by 2030. In terms of demand arising out of exports, delegates said that the Russia-Ukriane war has created a unique opportunity for Indian exporters. "India will see a huge rise in exports of rice due to the war like situation. This is going to push demand for containers on the port. So, the country should streamline its logistics to cash in these emerging opportunities," said Ajay Zadoo, Regional Manager of Central Warehousing Corporation. Meanwhile, Satish Lakkaraju, Senior Vice President, Wiz Freight said that Andhra

Pradesh should increase air connectivity with more international destination options for attracting foreign investors to the state. "Investors are willing to come and invest in Andhra Pradesh given its long coast line, good road network, and rich natural resource base. To cash in those opportunities, the state should invest more on creating a seamless network of all types of connectivity," said Lakkaraju.