Nalco prefers Paradip to Vizag port

The National Aluminium Company Limited's (Nalco) exports from the Visakhapatnam port dropped by more than 10 per cent during the last nine months of the current fiscal.

Nalco officials say the company has been compelled to shift some cargo from Visakhapatnam port due to the price advantage as container handling charges are much less at Paradip port when compared to those at Visakhapatnam port.

During the period April-December, Nalco exported 7.25 lakh tonnes of alumina powder as against 6.35 lakh tonne in the corresponding period of last fiscal.

"We exported 10 lakh tonnes of alumina powder from Visakhapatnam port in the last fiscal. But this year we are likely to touch between 8 to 9 lakh tonnes only," said Nalco sources.

"The company is paying Rs 500 to the railways for transporting one tonne of alumina powder from Damanjodi plant to Visakhapatnam port, whereas the rail freight charges between Nalco plant and Paradip port are only Rs 100 a tonne. Due to these variations in freight charges, the company is diverting some cargo to Paradip port," they explained.

The National Aluminium Company Limited is planning to expand its capacity to 21 lakh tonnes from the existing 15 lakh tonnes. Once this expansion is completed, the company is expected to bring around 13 lakh tonnes to Visakhapatnam port.

The company spent Rs 25 crore last year to enhance the infrastructure facilities at the Visakhapatnam port, the sources added.