VCTL posts 122% growth in container handling in FY05

Visakha Container Terminal Private Limited (VCTL), which has developed the container terminal at Visakhapatnam Port and is operating it on a built-operate-own-transfer (BOOT) basis, is targetting to handle 80,000 TEUs (twenty foot equivalent units) this fiscal.

VCTL recorded about 122 per cent growth in container handling in the fiscal ended March 31, 2005. It is aiming at achieving more than 75 per cent growth in the current fiscal.

VCTL is a joint venture between Dubai Ports International and United Liner Agencies of India. It started its operations at the Vizag port in July 2003.

In 2004-05, VCTL handled 45,517 containers (both imports and exports) as compared to 20,538 containers in 2003-04, representing a growth of about 122 per cent.

In case of cargo volumes, VCTL registered a 127 per cent growth by handling 6.34 lakh tonnes of cargo in 2004-05 as compared to 2.79 lakh tonnes in the previous fiscal.

"In addition to our vigorous marketing efforts, we are also providing efficient and quick handling facilities. These have reduced the waiting time of the container vessels at the port. Apart from this, reasonable terminal handling charges are drawing customers to transport their containers through VCTL. Factors such as these have helped us achieve a significant growth in 2004-05," D Sugantharaj, chief operating officer of VCTL, told Business Standard.

The inflow of container vessels to the Vizag port has also improved significantly. On an average, 18 container vessels touched the Vizag port every month in 2004-05 as compared to 7-8 vessels in the previous year.

"Currently, we are providing direct services to several ports in China, Singapore and Colombo. From May, we are going to introduce direct container vessel services to Chittagong port too," Sugantharaj said.

As per the MoU signed between the Vizag port and VCTL, the latter should handle one lakh TEUs in the year 2006-07.

"We have already invested Rs 100 crore to develop the container terminal. We plan to invest another Rs 80-90 crore in procuring additional cranes and equipment, which would be sufficient to handle up to 2,50,000 containers a year," Sugantharaj said.