The port of Vizag handles a record freight volume of 73.73 million tons

The Visakhapatnam Port Authority (VPA) made cargo-handling history in the 2022-23 financial year by handling 73.73 million tons.

This is the highest ever cargo throughput by the VPA since its inception, beating the previous peak of 72.72 tonnes in FY 2019-20. It is worth remembering that in 2021-22 the port of Vizag had handled 69.03 tons of cargo and now it has reached 73.73 tons with a growth of over 7%.

Speaking to reporters here on Friday, Visakhapatnam Port Chairman K Rama Mohana Rao said Vizag Port ranked fourth in the ranking of major ports and second in terms of throughput volume on the east coast.

Rama Mohana Rao said the decline in thermal coal throughput (57%) has shown an impact on cargo throughput. “Container freight declined to 2%, while iron ore and pellets (0.2%) also saw a slight decline. However, the increase in other cargoes has allowed history to be made,” said the port chairman.

“The non-renewal of the MoU by Tamil Nadu Generation and Distribution Corporation (TANGEDCO) caused the decline in thermal coal, while the price drop in the international market combined with lack of demand from China impacted iron ore and pellets. Container freight declined due to an increase in container freight rates compared to pre-Covid times,” said Port Chairman Rama Mohana Rao.

He said the increase in cargo volume such as steam coal (67% YoY) 117.10 lakh tons, POL and crude oil (13%) 161.25 lakh tons, cooking charcoal (11%) 49.01 lakh and fertilizers and crude ( 6%) 28.17 lakh tons. The Vizag port would get Rs. 1700 crore by cargo handling.

“Handling of larger ships in the inner harbor possible from December 31, 2022, handling of Baby Cape Vessel (LOA 260 m, width 43 m) has started. As part of the making of the Port as a Landlord model, three PPP projects have been awarded an investment of Rs. 655 crore, and two other projects are in advanced stages of awarding,” the port chairman said.

He added that the monetization of non-core assets — including Kalyana Mandapams, sports stadiums and others) which are cost centers that are generated as good-revenue profit centers will be transferred to the port. Modernization of the fishing port under PMMSY with an investment of Rs. 151 crore has also been initiated by the Prime Minister and works are underway.

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