Cos eye Vizag port as cargo swells

Gateway East setting up Rs 9cr container freight station

The frequency of container feeder vessels touching the Visakhapatnam Port has increased significantly with at least three main liners seen every month for the past one-and-a-half years. To cash in on the scenario, many companies are eyeing Vizag port for setting up container freight stations (CFSs). The latest to join the list is Gateway East India Private Limited, jointly promoted by Mumbai-based Gateway Distri Park and Viking Ventures Private Limited.

The company is setting up a CFS here at an investment of about Rs 9 crore, and has acquired 20 acres of land for this purpose. The first phase of operations will be spread over an area of 10 acres and Rs 9 crore investment has been made, said Mahesh Adapa, senior operational manager, Gateway East India Private Limited.

Speaking to Business Standard, he said, "The first phase of operations will be commissioned within a couple of weeks. We are awaiting some clearances from the government departments. Once we get them, we will start our commercial activities."

He said that Gateway was expecting to make 30 per cent of the business in the initial stage and that the second phase expansion would be taken up in the next fiscal with the same level of investment.

Vizag port started witnessing brisk activity in terms of container volumes after Visakha Container Terminal Private Limited (VCTL) developed a container terminal at the Visakhapatnam Port on a BOOT (Build-operate-own-transfer) basis. Last fiscal, the container volumes went up to 45, 517 TEUs (twenty foot equivalent units) and VCTL is targeting 80,000 TEUs this year. Apart from this, state-owned Concor (Container Corporation of India Limited) is also bringing container trains from far away places like Tuglakabad to Vizag. Before VCTL's container terminal, Vizag port used to handle only below 20,000 TEUs.

Sravan Shipping Services Private Limited is already operating a private CFS in an area of 40 acres.

"Last fiscal, we handled about 5,000 TEUs at our new CFS. This year, we are aiming to handle 12,000 TEUs. VCTL operations is drawing new cargos at the port and this is translating into good business for container freight stations," G Sambasiva Rao, managing director, Sravan Shipping Services, told Business Standard.

Concor is also setting up a CFS in the vicinity of the port at an investment of about Rs 10 crore while Central Warehousing Corporation is already operating a CFS at Vizag.