The Hindu Business Line : Vizag Port charts an ambitious course

We propose to increase the port's capacity to 110 mt by 2011-12 by improving the draft, adding to berth capacity, stepping up logistics and acquiring more equipment at a cost of Rs 3,000 crore. — MR K RATNA KISHORE, CHAIRMAN, VISAKHAPATNAM PORT TRUST

For the past several years Visakhapatnam port has been the country's largest cargo-handling port but not the fastest-growing. In 2006-07, the growth in the port's traffic throughput over 2005-06 was a little more than one per cent. True, achieving high growth on a large base is not so easy. But then there were other challenges also. The Visakhapatnam Port Trust Chairman, Mr K Ratna Kishore, an officer of the Indian Administrative Service belonging to the Andhra Pradesh cadre, who took over a little more than three years ago, discussed recently with Business Line the various challenges facing the port.

Excerpts from the interview:

The Visakhapatnam port has been No 1 in the country in cargo handling since 2000-01. What about the current year?

Hopefully, our position will remain intact in 2007-08 also. The Ministry of Shipping and Surface Transport has indicated a target of 61.3 million tonnes (mt) for the current year, a sizeable jump over the last year's throughput of 56.38 mt. If the traffic trend so far in the current fiscal is maintained, we should have no problems achieving the target.

But in first two months of the current year, Kandla port handled more traffic than Visakhapatnam port...

Yes. In first two months of the current fiscal, the Kandla port did handle more traffic than Visakhapatnam largely due to the jump in oil traffic atn Kandla following the commissioning of the Essar Group's Single Buoy Mooring. Still we're hopeful of our performance in the current fiscal.

What makes you so hopeful?

First, Kandla was marginally up. More important, we hope to handle an additional 8 mt of cargo this fiscal — additional 3 mt each of iron ore pellets and petroleum products and another 2 mt of coking coal and lam (low ash metallurgical) coke. Till the middle of June, we were up by about 3 mt over the same period of last year. Also, fortunately for us, some new items such as project cargo, steam coal imports for power plants, and alumina imports have emerged and I've reasons to believe these items are going to stay with us for some time. Kandla, I feel, will be a close second this year.

In 2006-07, you did not achieve the targeted throughput...

Yes. The target for 2006-07 was set at 61.59 mt but our throughput was 56.38 mt and yet we emerged No 1.

Why did you fail to hit the target?

Frankly, the target set for 2006-07 was too big for us to achieve. In 2005-06, we handled 55.8 mt, so it would have been a huge jump for us. Still we were trying our best till we took a hit on two fronts — iron ore and coking coal. There was a shortfall in iron ore traffic to the tune of 2 mt. Also, about half a million tonnes of coking coal was transferred to Paradip. We're not upset because a portion of our traffic went to Paradip. We all work for the country and also there is an element of complementarity between the two ports.

Where do you see Visakhapatnam port a few years from now?

Our present capacity is 57.8 mt and cent per cent capacity utilisation is not a sign of good health for any port. We, therefore, propose to increase the port's capacity to 110 mt by 2011-12 and this will be achieved through several ways such as deepening of the channel to improve the draft, improving connectivity, adding to berth capacity, stepping up logistics and acquiring more equipment.

All these projects will be under National Maritime Development Programme and the total cost is estimated at more than Rs 3,000 crore — Rs 259 crore for deepening of channels, Rs 1350 crore for construction of 16 new berths, Rs 750 crore for acquisition of equipment, Rs 380 crore for connectivity, and another Rs 290 crore or so on other aspects.

Your projects for the current fiscal..,

There are quite a few projects under implementation in the current year such as deepening of the outer harbour for night navigation of Suezmax tankers, achieving 12.5-metre draft in five inner harbour berths, construction of three berths (WQ 8, EQ 10 and WQ 6) in inner harbour, the last two being on BOT basis, acquisition of harbour mobile cranes, high capacity tug and high powered loco. Also, an estimated Rs 12 crore will be spent on upgrading IT services.

And the major projects in pipeline...

The major projects in the pipeline include outer harbour expansion to handle 200,000-DWT capacity vessels, mechanised coal handling facility at general cargo berth on BOT basis, SBM facility at anchorage to facilitate operation of Hindustan Petroleum Corporation, mechanised fertiliser handling facility on BOT basis, development of railway facilities and other logistics improvement.

What are the biggest challenges you face?

Unlike many other ports, Visakhapatnam port suffers from manpower shortage. Our total workforce is a little more than 5,000. Together with dock labour board workers, the figure comes to 6300. This is not a huge workforce for an Indian port poised to handle more than 60 mt of traffic.

We want to recruit more to meet our requirement but that is possible only with the Ministry's approval. The Ministry's approvals cover one-third of our requirement. Next, the crying need of the day is more professionalism which can straightaway improve productivity by 30 per cent without any investment. This is true not only about our port but the port sector in general.

Aren't you worried about the impending competition from the Gangavaram port?

Frankly, I'm not unduly worried. For several reasons. The cost of operation at Gangavaram, it being a new port, will not be less that in an old port like ours. If anything, it will be more than ours. I'm sure Rashtriya Ispat Nihgam Ltd, the owner of Visakhaptnam steel plant, will not totally withdraw from Visakhapatnam port even after the Gangavaram port has been commissioned. Total withdrawal may not be to the steel-makers' advantage. True there will be some shift of traffic but the volume, I feel, will not be alarming. The way the economy is growing there will be room for every one.