The Hindu : Andhra Pradesh / Visakhapatnam News : VPT remains on top despite `crude' setback

Online edition of India's National Newspaper
Friday, Aug 27, 2004

Andhra Pradesh

Andhra Pradesh - Visakhapatnam

VPT remains on top despite `crude' setback

By Santosh Patnaik

VISAKHAPATNAM: Visakhapatnam Port Trust has maintained its prime position in cargo handling among the major ports of the country for the fifth consecutive year despite a setback due to diversion of transhipment cargo to Kakinada Seaports Ltd.

The increased export of iron ore and iron ore pellets, thanks to the worldwide surge in steel industry, has come as a big relief for VPT in retaining its top slot. If the present trend continues, the port is poised to surpass the target of 13.5 million tonnes set for export of iron ore and iron ore pellets.

Crude diversion

VPT emerged as the premier port during 2003-04 by handling 47.74 mt. forcing its traditional rival Kandla to lag behind by 6 mt. As against the target of 49 mt. set for it by the Ministry of Shipping this year, it has handled a throughput of 18 mt. in the first four and half months.

Notwithstanding the fact that VPT offers competitive tariff, the public sector oil majors have opted to route their imported crude by very large crude carriers (VLCC) to Kakinada port due to "contractual obligations". Because of this, VPT has so far lost 3 mt. transhipment cargo.

"We don't know the exact reasons for diversion of the crude to Kakinada though our rates are quite competitive. Despite the loss of 3 mt. due to this diversion, we are confident of achieving a throughput of 47 mt. on par with last year's," said the VPT chairman, K. Ratna Kishore.

Shift in focus

The port exported iron ore of 44.79 lakh tonnes and iron ore pellets of 13.04 lakh tonnes as on Tuesday as against 22.9 lakh and 9.43 lakh tonnes respectively in the corresponding period last year.

To overcome the loss of transhipment cargo, VPT is now focusing on other cargoes, apart from continuing the present trend of iron ore and iron ore pellet exports. The boom in container, coking coal and fertiliser cargo is bound to help VPT this fiscal. This apart, industry sources indicate there will be increase in the traffic of textile and pharmaceutical products.

There are also indications that the port will do well in achieving the target of 60,000 TEUs (20 feet equivalent units) set for container cargo handling as against last year's 20,000. During the first four months, it could handle 10,142 TEUs against 5,364 TEUs during the same period of last fiscal.

In a welcome development, VPT registered the lowest-ever average pre-berthing detention for the first four months, which is less than half-an-hour in the current fiscal -- accounting for an increase of 60 per cent over the previous year.

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