Vizag port set to become LPG transshipment hub

Port authorities, HPCL to jointly develop the hub

Visakhapatnam Port is all set to become the transshipment hub for liquefied petroleum gas (LPG).

The port authorities and Hindustan Petroleum Corporation Limited (HPCL) are jointly planning to develop the port as an LPG transshipment hub.

Currently, HPCL uses Vizag port for import of LPG. The idea to create a facility for LPG transshipment comes in the wake of the Rs 280-crore LPG cavern project (underground storage facility) being jointly developed by HPCL and France-based Totalfina near here.

The project, with a storage capacity of 60,000 tonnes, is expected to be ready within two years.

Vizag port officials hope to generate additional revenue and cargo by creating LPG transshipment facility as HPCL is also planning to increase its LPG imports via the port for transportation to other ports in the country by smaller vessels.

The port constructed an LPG berth at the outer harbour with a round-the-clock handling facility a few years back.

It reduced its LPG handling charges to Rs 136 per tonne as against Rs 180 per tonne a few weeks back. "In view of the request from LPG importers, especially HPCL, we have reduced handling charges by 25 per cent at one go," said K Ratna Kishore, chairman, Vizag Port.

During 2005-06, the port handled 3.5 lakh tonnes of LPG of which HPCL imports alone occupied more than 95 per cent. HPCL is planning to import about 10 lakh tonnes of LPG by 2008-09 through the port.

"If HPCL brings more LPG to the Vizag port, we will be ready to further reduce the handling charges. The reduction of charges won't impact our revenues if import volumes are more," M S Rao, deputy chairman of the port, told Business Standard.