Vizag port hits record cargo, but faces rising competition

Visakhapatnam: Despite being in a jubilant mood for achieving an all-time high record cargo of 81.09 million tonnes in 2023-24, it’s no time for complacency due to stiff competition ahead from rival ports in the neighbourhood.

Adani Ports Special Economic (APSEZ) has already brought Krishnapatnam and Gangavaram ports, two non-major ports developed by Andhra Pradesh Government under PPP route in its kitty.

APSEZ, India’s largest private port operator has developed a container terminal at Gangavaram, located on the backyard of Visakhapatnam Port Plant (VSP). VPA which owns world-class Visakha Container Terminal with investment from JM Baxi Group as a BOT operator faces stiff competition from Gangavaram Port.

APSEZ recently signed a deal to acquire Gopalpur Port in Odisha from SP Group and Orissa Stevedores Ltd (OSL).

Kakinada Gateway Port and Mulapet Port in the neighbourhood within a distance of 120 km from Visakhapatnam are under construction.

“We are aware of the challenges ahead and accordingly are gearing up to become globally competitive by significantly improving Key Performance Indicators (KPI),” VPA Chairman M Angamuthu told Bizz Buzz.

He said citizen engagement is another priority area to grow along with the development of the city by spending liberally through CSR initiatives.

The VPA achieved a significant milestone by handling 81.09 million tonnes in the just-concluded FY24 duly surpassing previous record cargo throughput of 73.75 MMTPA during the FY23. This remarkable feat not only showcases the port’s capabilities but also highlights its position as a key player in the maritime industry.

Dr Angamuthu commended the VPA team for its exceptional performance and dedication, which led to this achievement. This milestone underscores the port’s commitment to excellence and efficiency in cargo handling, setting a new standard for the industry, he said.

The port’s cargo handling growth has been steady over the past five years, with a significant increase to 81.09 MMTPA in 2023-2024, compared to 72.72 MMTPA in 2019-2020. VPA has shown its resilience against severe disruptions in supply chains and economic down turn due to Covid-19 pandemic.

Port officials said the factors which contributed to record volumes in FY24 include POL and crude volumes up by 27 per cent, iron ore by 12 per cent, fertilizer volume by 6 per cent, handling more number of baby cape vessels up to 43 mts beam and more than 35 per cent growth in number of vessels handled.

The Visakha Container Terminal has reported a 28 per cent increase in box volumes to reach 6.65 lakh TEUs (ten equivalent units).

KPI has also shown significant 68 per cent improvement in pre-berthing detention, 10 per cent improvement in turnaround time and output per ship per berth day (OSBD), and 8 per cent improvement in idle time at berth.