Visakhapatnam Port Trust (VPT) has been able to attract traffic from neighbouring ports after it decided to reduce certain levies, according to a top official.
“We had to take pro-active measures keeping in view the market conditions,” VPT Chairman M.T. Krishna Babu, told The Hindu.
Bulk cargoADVERTISEMENT
The decision, which was ratified by the board, included introducing zero levy on break bulk cargo like steel, granite and ingot exports and cutting tarrif on bulk cargo from 234 per cent to 150 per cent and on thermal coal from 499 per cent to 150 per cent with effect from April 1. This resulted in causing ‘reverse diversion’ of traffic from neighbouring ports.
Visakhapatnam Port, which finished fifth last fiscal by handling 57.03 million tonnes, is looking to cross 60 million tonnes this year though the Ministry of Shipping had set the target at 63 million tonnes. In the first quarter, the port achieved a growth rate of 15 per cent. The port got more than double the quantum of thermal coal, usually handled, last month. Tamil Nadu Electricity Board (TNEB) is routing more thermal coal through Visakhapatnam.
The port also took a decision recently to give a concession of Rs.12 per tonne on railway terminal charges. This will be doubled if the cargo handling goes up by 20 per cent compared to last year’s throughput.
ADVERTISEMENT
“The decisions taken by the port management have generated goodwill among export-import traders to route their cargo through Visakhapatnam,” said Visakhapatnam Stevedores’ Association Secretary A.V. Subba Rao.
Iron exportsThere has also been surge in iron ore exports. It has gone up to two million tonnes compared to 1.6 million tonnes in the corresponding period last year. The port is expecting healthy growth this year in coking and steam coal imports.
The port is undertaking an expansion exercise to increase its capacity from 85 to 125 million tonnes in the next two to three years.