VPA aims to retain its third rank among major Indian ports in FY24

Visakhapatnam: By adopting a multi-pronged approach of optimising cargo handling in a fully mechanised environ strengthening its linkage with the trade by offering last mile connectivity thereby cutting down the turnaround time (TAT), Visakhapatnam Port Authority (VPA) is racing ahead to retain its third rank among major ports after Paradip and Deen Dayal (Kandla) Ports

during 2023-24.

It handled a cargo of 73.78 million tonnes on March 2, itself -- the highest quantity of cargo VPA had handled in its 90 years of glorious history since inception in 1933. During 2022-23, the port had set a new record by handling an all-time high cargo of 73.78 million tonnes.

"Our workforce as well as all the stakeholders are in upbeat mood as together we will very easily surpass this year's target of 80 million tonnes with more than three weeks to go," VPA Chairperson Dr M Angamuthu, told Bizz Buzz.

The port's total traffic was 60 million tonnes during the current fiscal as on December 31, 2023. After improving techno-economic parameters based on the recommendations of Boston Consulting Group (BCG), VPA is fast emerging as a landlord port with several mechanisation and modernisation berths and facilities being handed over to private operators on PPP model. The management is also trying to sort out a few berths including one awarded to Adani Group on a BOT basis and revive their operations.

Another method adopted by the port in line with the Ministry of Port, Shipping and Waterways' focus on monetisation is to give its surplus lands on lease/BOT basis to the corporates. It has already developed an ultra modern convention hall named Sagarmala and gave 17 acres on a 30-year on a BOT basis in Saligramapuram to Raheja Group for building the Inorbit Mall with an investment of an estimated Rs 600 crore.

According to official sources, VPA handles 43 per cent of cargo by road, 26 per cent railways, 21 per cent pipeline and 10 per cent. Now the focus is to reduce the trucking to put pollution at bare minimum with complete mechanisation and retrofitting the old berths. At a recent traders' meet held recently in Hyderabad in association with the Telangana Chambers of Commerce and Industry, Chief Mechanical Engineer RN Harikrishna and Traffic Manager B Ratna Sekhar explained how they could avail their export and import requirements through VPA. The Ministry of Commerce has already designated Visakhapatnam as the second gateway port for traffic bound for Nepal after Kolkata.

Leveraging India's 'Look East' Policy Visakhapatnam has the potential to transform into a gateway for EXIM cargo of South-East Asia, Kamal Bali, CII Southern Region president and Managing Director of Volvo Group India, remarked during a meeting here recently. "We are very optimistic about our future," VPA Secretary T Venugopal, said.