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The current fiscal from April to November is turning out to be a bag of mixed fortunes for Visakhapatnam Port Trust (VPT). While VPT recorded a 8.17% growth on cargo handled at 40.6 million tonnes during April to November 2016 against 37.5 million tonnes during the corresponding period of the previous year, two major projects including development of the EQ1A berth and modernisation of OR 1 and 2 berths are likely to be delayed due to different reasons.
According to VPT officials, the major port has witnessed an increase in terms of traffic for cargo such as containers and iron ore, whereas it has seen a decline in cargo such as POL (petroleum, oil and lubricants), fertilisers, thermal and coking coal. While iron ore cargo has increased significantly by around 4 million tonnes during the current fiscal, container traffic has increased by about 1.1 million tonnes.
Incidentally, with the central government pushing for reducing imports, steam coal traffic has reduced from 7.4 million tonnes in the last fiscal between April and November to around 5.7 million tonnes during the current fiscal. Similarly, VPT officials attributed the drop in coking coal from 3.8 million tonnes during the last year to 3.2 million tonnes in the current fiscal to slowdown in the steel market.
“Coking coal is mainly used in the steel industry and we are witnessing a drop due to the slow down in steel sector,” a VPT official said. However, he said, “Increased coastal movement of iron ore has helped in increasing cargo traffic as compared to last year.”
“The developer has informed VPT that around 78% of the work has already been completed. But, some portion of the funds required for completing the project is yet to be given to the developer by banks. So, VPT is looking at approaching the shipping ministry for last mile funding, which was until now provided for highway projects. If the ministry approves the funding, then the port can see as to how the funding required for the project can be met. Otherwise, the port will have to look at other options,” another port official said.
Similarly, the port had approached the ministry of environment and forests for its nod to improve the capacity utilisation of OR (oil refinery) I and II berths at an estimated cost of Rs 193 crore. However, sources said oil companies, who have to change the pipelines if the refinery berth capacity is upgraded, are yet to give their consent for the project. According to sources, the oil companies have expressed that the potential for POL cargo is not expected to rise significantly in the near future due to which they are yet to give a commitment on the project.
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