The Visakhapatnam Port has slipped in the past 2-3 years to second position behind Kandla from 1st position.

Going by present trends it may slide further as the nearby Gangavaram port in the private sector is eating into its cargo handling business on a large scale.

The Vizag port handled 68.04 million tonnes of cargo in 2010-2011 against the target of 70 million tonnes and finished behind Kandla. The shortfall of 1.96 million tonnes against the target is attributed by port authorities to factors such as shutdown of one refinery unit of the HPCL for nearly 40 days decline in the intake of thermal coal by TNEB, incessant rainfall and decommissioning of four berths in the inner harbor.

But the main factor is diversion of traffic to Gangavaram. It is estimated that nearly 13 million tonnes to 14 million tonnes of cargo such as coking coal, thermal coal and others may have been diverted to the new private port.

It is also evident that Gangavaram with its deep draft and located in the backyard of the Visakhapatnam Steel Plant is basically snatching cargo from the Vizag port and not attracting any new cargo. The established public sector port on the other hand is under pressure to attract new cargo.

(Sourced from The Hindu BL)