VCTPL which operates and manages the container terminal at Vizag under the aegis of VPT has achieved a throughput of over 450,000 (0.45 million) TEUs for FY ending 18-19.
Marking an overall growth of 16% the major contribution came in from the Local export/import volumes with 18% growth, Rail Bound growth of 10% and a transhipment growth of a whopping 148%.
‘The cabbotage relaxation by the government last year has been a great boon for empty containers here. This has also economized ocean freight rates to a certain extent. And with the kind of draft available here coupled with the expansion (of the terminal) work underway we can well become a transshipment hub said Mr PL Haranadh, IRTS, Deputy Chairman, VPT speaking to Vizag Industrial Scan.
Both Imports & Exports have grown too at 23% & 10% respectively with Nepal volumes being the prime contributor in Imports growth. As Visakhapatnam is the hub of Ferro Alloys, Reefer &Pharma local import volumes have equally contributed for incremental volumes as well.
‘We at the port have undertaken many marketing initiatives which have led to this growth’ said the Deputy Chairman, VPT.
Vessel related charges have been slashed at the terminal to enhance business. Fifty percent concession has been given on vessel related charges upto 50,000 GRT and 70% concession beyond 50,000 GRT. ‘For vessels calling from VPT to new destination ports we are giving 70% concession irrespective of tonnage’ said Mr Harnadh.
As many finished products get exported through VCT the imports of raw material play a pivotal role. ‘The growth in Ferro Alloys industries has been quite impressive in this region that took a decent leap from an average of 3800 TEUs to 4500 TEUs a month with major Ferro industry players increasing the production of the cargo said Mr Anil Narayanan, Deputy COO, VCTPL.
To meet the requirements of the Ferro Alloy industries, Manganese Ore the raw material for Ferro Alloys production imports have increased by 76% in FY 19 over FY 18. Both existing & new companies have been the prime contributors in the growth of Manganese Ore imports.
The imports of Chemicals into the Pharma industries increased by 15% thereby resulting in the growth of Chemical/Pharma exports by 52% & 50%.
Commodities like Scrap & Quick Lime have grown too registering a growth rate of 19% & 18% respectively.
It is stated that the Growth in Agri Products has been consistent and showcased a growth of 88% with the opening of South East Asia market primarily to Indonesia & Vietnam contributing towards the commodity increase. Finished product exports of Granite & Stones is on the rise too with a growth rate of 17%.
Reefer growth slows
Albeit marine products contribute majority of the reefer traffic the growth in reefer traffic slowed last fiscal declining to 10% from a 25% YoY growth.
‘This decline was due to special tariffs imposed by US government on Frozen Sea Food’ said Mr Anil.
He further stated that with the opening of South East Asia market and China the drop in US volumes has been compensated and that the growth rate will continue. Marine products contribute 90% of the reefer traffic with the remaining coming from Frozen Food Exports, Chocolate imports, Chemicals imports, live plants etc.