The Visakhapatnam Port has improved its performance in comparison with the last financial year, but it is still likely to fall short of the target set by the Union Shipping Ministry.

According to port sources, union shipping ministry set a target of 70 million tonnes the port is likely to finish 2 to 3 million tonne short of it by the end of the month and the financial year. Till date, the port has crossed the 66 million tonne mark. During the last financial year (2009-10), the port handled 65.54 million tonne against a target of 67 million tonne. It finished second among the major ports, after Kandla, and the same is likely to be repeated this year too.

The port's performance should be viewed in perspective, as it is facing stiff competition from Gangavaram port for the past two years. The new port has grabbed 5 million tonnes or more of the cargo, which used to be handled by the Vizag port, coking coal imported by Visakhapatnam Steel Plant and other cargoes. Gangavaram port is conveniently located for VSP, and the port has also installed mechanized handling facilities. In spite of the loss of a substantial chunk of cargo, the Vizag port has done fairly well.

Iron ore and pellets (18.5 million tonne) constitute a major chunk of the cargo handled by the port and the container cargo has crossed 100,000 TEUs. On the whole, the port's performance has remained steady during the year, registering a slight improvement. The Vizag port has taken up a number of projects, such as the upgrading of the outer harbor general cargo berth and construction of more berths in the inner harbor with private participation, to face the challenges posed by the private ports in the vicinity, especially Gangavaram.

These projects will enhance the capacity of the port to 120 million tonnes and in the long run both Vizag main port and Gangavaram may have enough cargo, if the projects taken up in the Vizag-Kakinada region take off.

(Sourced from Business Line)