VPT sees Rs 698-cr operating margin in FY21

Visakhapatnam: VISAKHAPATNAM Port Trust recorded an operating surplus of Rs 698 crore during the just concluded financial year.

The net surplus before tax was Rs 306 crore. A capital expenditure of Rs 79 crore was incurred during 2020-21 for various developmental works. VPT which retained third position among major ports for second time in a row by handling 69.84 million tonne during 2020-21, has improved average waiting time of a ship to 1.15 hours as against 1.22 hours recorded the previous year.

VPT Chairman K Rama Mohana Rao told the media on Saturday that they could retain second slot due to increase in exports of iron ore and finished steel to China. He said decline in economic activity led to fall in consumption of steam coal by power sector and coking coal by steel industry.

Rao said during the year they handled 2,040 ships compared to 2,099 vessels the previous year.

VPT has shown resilience against severe disruption caused in supply chains as a result of the pandemic from first quarter of the fiscal. VPT Railways handled a volume of 32.35 million tonne during 2020-21 surpassing previous year's 32.13 million tonne.

Rao said a growth of nearly 1 per cent was achieved in moving cargoes to and fro the hinterland by rail. Inward cargo including iron ore handled by railway system recorded a phenomenal growth of over 50 per cent during the year. He said about 9,635 railway rakes were handled despite the pandemic as against previous year's 9,174 rakes.

The Chairman said they would award contract to develop a cruise terminal at a cost of Rs 103 crore in August. Development of covered storage if 16,000 sq. metres at an estimated cost of Rs 36 crore is scheduled to be awarded in June.

Referring to navigational enhancements, he said permissible length of vessels for berthing at container terminal had been increased to 390 meters with effect from December 1, 2020.