Vizag Port targets 80 MT cargo by 2024, eyes 100% PPP model by 2030

Mega Port Makes Waves

• Container traffic up 42% in April-November 2023 compared to FY23
• Emerging as a regional hub for transshipping containers from East Coast ports
• Port handled 26.36% of India’s marine product exports, worth Rs 16,877 cr in FY23
• Modernizing fishing harbour under PMMSY with Rs 150 cr investment for completion by Oct 2025

Visakhapatnam: Visakhapatnam Port Authority (VPA), which ranks third among major ports, is all set to sail on a new voyage by adopting a short-term and long-term corporate visions and improving techno-economic parameters adhering to global benchmarking practices. Business meetings will be held to release the vision documents in a month or so with details on goals set for 2030 in alignment with the Maritime India Vision-2030 and another for 2045. "We are continuing our impressive track-record in Key Performance Indicators (KPIs) and during the past 90 years. We have successfully transformed from a tiny port to a mega port," VPA Chairman M Angamuthu said on Wednesday.

At present, the port is handling 43 per cent of cargo by road, 26 per cent railways, 21 per cent pipeline and 10 per cent through conveyor and the thrust now is to improve the rail network to minimise movement of trucks by mechanising and retrofitting the old berths.

The port, which has a cargo handling capacity of 137 million tonnes per annum, has witnessed impressive growth in container traffic. During FY23 (till December 31, 2022), it has handled a total traffic of 60 million tonnes. "We are confident of increasing it to 80 million tonnes by March 31, 2024-an all-time record since our inception in 1933," the Chairman told the media here.

Angamuthu said the container growth was impressive in FY24 compared to FY23. During April-November, 2023, 4.63 lakh TEUs were handled with 42 per cent growth in volumes due to the concerted efforts of the port. The port has withdrawn priority berth hire charges, extending concession on vessel related charges (VRC) up to 70 per cent and additional 10 per cent rebate on VRC for encouraging transshipment and some of the measures taken by the port. The terminal operator JM Baxi and VPA are jointly conducting customer meets to attract potential customers and a new container service Liner Service IFX-2 launched its operations in FY24. Showing significant improvement in KPI, cargo volumes increased by impressive 9 per cent, pre-berthing detention reduced by 68 per cent, turnaround time came down by 11 per cent, output per ship berth day improved by 11 per cent and reduction of idle time at berth achieved by 12 per cent during the current fiscal.

Angamuthu said Visakha Container Terminal is evolving as a regional transshipment hub on the East Coast of India with containers from Kolkata/Haldia, Paradip, Chittagong and Yongon getting transshipped at VPA.

The port is making the city proud by putting Visakhapatnam on global stage by developing the state of the art Vizag International Cruise Terminal (VICT). Littoral Cruises Limited signed the MoU for the Chennai to Singapore via Visakhapatnam cruise in the presence of the Union Minister for Shipping, Waterways and Ports Sarbananda Sonowal sometime ago. Further, Littoral have plans to run a cruise service connecting India, Sri Lanka, and Maldives with Rs 1,200 crore investment. The port is developing policies that encourage cruise operators to include VICT in their itineraries. The port is outsourcing the operation of cruise terminal and planning to make it operational in a few months. Three PPP projects such as mechanisation of WQ-7&8 berths, EQ-7 berth and WQ-6 berth are in progress. Another berth EQ-6 is also in advanced stage of award on PPP. In the next five years, VPA is likely to handle about 75 per cent of the total throughput through PPP terminals and by the end of 2030, VPA is likely to inch towards 100 per cent handling through PPP operators and become a landlord model port by the end of 2030.