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K.V. Kurmanath

Andhra Pradesh is set to emerge as a major hub for sea-borne trade, within the next four-five years, thanks to the initiative of the State Government to develop facilities along the State’s 978-km long coast line.

The initiatives, as Mr K.V. Brahmananda Reddy, Special Secretary, Infrastructure & Investments (Ports), Government of Andhra Pradesh, explained to Business Line, would include development of non-major ports on public-private partnership (PPP) model and modernisation and upgradation of existing facilities.

A beginning had already been made with the first phase commissioning of four berths of the Rs 1,200-crore Krishnapatnam Port in July and the launching of trial operation of Gangavaram Port, a deep water port, a few days ago, he said.

The traffic throughput of the ports in Andhra Pradesh (excluding Visakhapatnam port), it is estimated, will reach the level of 145 million tonnes (mt) by 2011-12, the final year of the Eleventh Plan, as against 21 mt in 2007-08. The commissioning of the Krishnapatnam and Gangavaram ports is to double the throughput to 42 mt in the current financial year itself and further to 65 mt in 2009-10 and 95 mt in 2010-11 as more and more berths will be added to these ports. In fact, more than one-third of the projected 145 mt of traffic by 2011-12 is to be handled by Gangavaram and Krishnapatnam ports — Gangavaram port 35 mt and Krishnapatnam port 27 mt.

These ports, as Mr Brahmananda Reddy pointed out, would trigger industrial activity around them as well as in the hinterland. A case in point was the upcoming large capacity power plants around Krishnapatnam Port. A special economic zone too would come up to cash in on the facilities to be offered by the port, he said.

But, then, building capacity is one thing and utilisation is another. The pertinent question that arises is: will there be enough business for these ports? Or will they indulge in unfair practices to cut into one another’s business?

According to Mr C. Sasidhar, Director (Administration) of Krishnapatnam Port, there will be business for all. The existing ports suffer from capacity constraints, leading to very high turnaround times for vessels, causing losses to the exporters and importers, he said, emphasising the need for additional port facilities.

A senior executive of Gangavaram Port said the growth prospects in the region being bright, there must be enough port facilities to meet the growing demand of importers and exporters. He cited the example of Visakhapatnam port, where pre-berthing delays varied from seven to 14 days.

On the other hand, Gangavaram port, the country’s deepest port, has installed a 800-mt conveyor to carry imported raw material directly from the port to the Visakhapatnam Steel Plant. “It will become much cheaper for exporters and importers operating out of our ports,” he said.

Andhra Pradesh, with one major port and 14 non-major ports, ranked number two in cargo handling in the last three years, with cargo handling capacity having increased substantially between 1998 and 2008. The State Government has initiated steps to help several non-major ports come up in the State under private initiative and these include Gangavaram, Krishnapatnam, Machilipatnam, Vodarevu, Nizampatnam, Meghavaram (Srikakulam district) and Kakinada (deep water port), the last two being captive ports.

While the Meghavaram port would be captive port of East Coast Energy and Power Systems, Kaninada port would be captive port for the Kakinada SEZ.

Machilipatnam port is to be developed by a consortium comprising Maytas Infra and Nagarjuna Construction Company. The concession agreement for the Rs 1,580-crore project was signed in April 2008. Dr Y.S. Rajasekhara Reddy, the Chief Minister, laid the foundation stone for the project in the same month.

In March 2008, the State Government signed an agreement with Ras Al Khaimah (RAK) for developing two ports at Vodarevu (Prakasam district) and Nizapatnam and an industrial corridor connecting the two. A special purpose vehicle with Matrix Enport as a joint venture partner was signed.

Meanwhile, the Union Government wants to have a shipyard of international standard come up at Vodarevu, on the east coast.

Responding to the proposal mooted by the Union Minister for Shipping, Road and Highways, Mr T.R. Baalu, in April this year, the Chief Minister offered to make available 2,000 acres of land within six months for the proposed shipyard which, when ready, is to give a major boost to the proposed port corridor.

“The total private investments in various port projects will be about Rs 21,710 crore, including Rs 16,800 crore for the Nizampatnam and Vodarevu ports and the corridor,” Mr Brahmananda Reddy said, adding that “the port development programme of Andhra Pradesh fits well into the revised National Maritime Development Programme, which aims to develop total port capacity of 1,500 mt in the country by 2011-12.”

More Stories on : Shipping/Ports | Andhra Pradesh

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