South Korea tops list for Vizag exports
South Korea has come out as the number one destination for container goods exported from Vizag. For the period January to November (2017) South Korea topped the list with over 10000 TEUs (twenty foot equivalent units) being shipped to that country. Dry containers contributed to the bulk of these exports registering over 10,000 TEUs and 303 FEUs (forty foot equivalent units) while reefers accounted for just about 20 FEUs (see table: Page 3).
Metals and minerals consisting for aluminum ingots and ferro alloys were the primary containerized commodities that headed to South Korea.
‘Huge amounts of ferro alloys goes to Busan’ says Visakhapatnam Container Line Association President Mr Jeevan Vikas.
Closely followed by South Korea the next big destination for Vizag container based export cargo was no surprise to China followed by Benin in Africa and then Japan (in TEUs).
Terming 2017 as one of the best years for the shipping industry Mr. Jeevan says this year has been good and much needed keeping in mind that 2015-16 were extremely tough years for the shipping industry globally.
Consolidation in the shipping industry led to the stabilization of the rates says Jeevan. One of the biggest jumps seen in container cargo was in the sea foods segment. Sea foods primarily comprising of Shrimps saw a surge of 20% says Mr Sushil Mulchandani, COO, VCTPL.
The city of destiny is the highest exporter of frozen shrimps within India.
Vizag’s container terminal witnessed a growth of 14% for the period Jan-December 2017 compared to the same period last year.
Jointly operated by DP World and the JM Baxi group VCTPL caters to the vast hinterland AP, Odisha, Chattisgarh, Jharkhand and MP.
Ferro and steel products along with rice and shrimps were some of the top items that were exported from Vizag port.
Nepal which earlier used to use Kolkata port is now utilizing the Vizag’s container terminal for its imports thus leading to an increase in imports of containers.
Taking on the advent of GST Mr Sushil says it has eased the transportation of goods by road.
‘The checkpost at Itchapuram is now no longer a hindrance and trucks pass by seamlessly hence considerably saving time and paper work’.
Mr Mulchandani informs that a new service called FME, a consortium of CMA-CGM, Cosco, Sima Tech, RCL and TS line has recently started catering directly to China and the Philippines weekly once.
Call for Apple Imports
Apple imports which are currently not permitted at Vizag port present an opportunity. According to Mr Mulchandani if permitted Vizag terminal could get an additional 50 containers a month.
‘Vizag MP Dr K. Hari Babu has written to the minister of Commerce and Industry Mr Suresh Prabhu requesting to allow Apple imports into Vizag’ says the COO of VCTPL.