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.

Set a target of 70 million tonnes, the port is likely to finish 2-3 mt short of it by the end of the month and the financial year. Till date, the port has crossed the 66-mt mark. During the last financial year (2009-10), the port handled 65.54 mt against a target of 67 mt.

It finished second among the major ports, after Kandla, and the same is likely to be repeated this year too.

Gangavaram factor

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 mt 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 mechanised 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 mt) constitute a major chunk of the cargo handled by the port and the container cargo has crossed one lakh TEUs.

On the whole, the port's performance has remained steady during the year, registering a slight improvement.

Upgradation

The Vizag port has taken up a number of projects, such as the upgrading of the outer harbour general cargo berth and construction of more berths in the inner harbour 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 mt 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.

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