VPT - Moored to success

FIRST PERSON/K Ratna kishore

K Ratna Kishore, the chairman of Visakhapatnam Port Trust (VPT), is a strong votary of the concept of 'profitable commercial venture,' and is zealously pursues it to attract more private investments into the port sector.

He spoke to Business Standard on various developments at VPT and how he is planning to attract more private investment into the port.
Excerpts:

Can VPT maintain this year as well the premier port status which it has enjoyed for the last three consecutive years.
Yes. By the end of October, the port , with a throughput of 27.1 million tonnes (mt), retained its lead position, followed by Kandla port with the second highest throughput of 23.4 mt.

As per the indications, the traffic this year is estimated at 47.5 to 48 mt, and we are quite confident of retaining our No.1 position.

If Gangavaram port comes up, most of bulk cargo will shift to that port. What measures are being proposed to face this situation?
For us competition per se is not a new phenomenon. VPT has re-defined the concept of hinterland by servicing the remote parts of the country like J&K, Punjab etc., with its highest efficiency and lowest pre-berthing detention which is less than an hour.

You will be amazed if I tell you that during the last five years, there has been an indirect saving of Rs 1000 crore to the shipping community owing to reduction in the standing cost to the ships calling at the port.

What are the ongoing projects in the port on BOT basis?
The first BOT project i.e., Development of container handling facilities was commissioned on June 26 , 2003.

The terminal operator installed two rail-mounted quay cranes and other supporting facilities. The terminal has a dedicated rail line facility right upto the terminal with a capacity to handle full rake of 45 wagons (90 TEUs).

The first container train for Tuglakabad ICD was flagged off on October 8, 2003 from the terminal, which is a big boost for container trade at this port.

Visakha Container Terminal Private Limited has established a record by achieving 33.6 moves per berth hour and 27 moves per crane hour.

The second BOT project i.e., two multi-purpose berths (EQ 8 & 9) at Inner Harbour, undertaken by Gammon India, is in progress. The berths are likely to be commissioned soon.

Have you any road map for private sector participation in the port?
Yes. The huge investment requirements in the port's infrastructure development and the need for private sector participation can hardly be over-emphasised.

We plan to develop two more captive berths in the Inner harbour WQ 6 and WQ 8 for captive users, four berths in the East docks, and take up an additional multipurpose berth in the Western Arm of Inner harbour on BOT basis. A few more projects are also planned to be taken up on BOT/captive /JV basis.

We are also thinking of extending the existing container terminal by another 380 metres.

In the Phase-II, we plan to deepen Turning Circle to (-) 14 metres, and entrance channel to (-) 13.5 metres through the BOT route. Simultaneously, the Inner harbour berths will be deepened and strengthened so that on completion of Phase-II, the Inner harbour berths can accommodate Panamax vessels with a draft ranging between (-) 12 to (-) 14 metres.

Do you plan to increase the capacity of Ore Handling Complex. Any plan to privatise OHC?
Yes. As per the present indications, the traffic of iron ore and pellets is expected to increase to 140 lakh tonnes by the end of 10th Plan.

The port has conceptualised a proposal to augment the capacity of the existing Ore Handling Complex from the designed capacity of 8 million tonnes per annum (mtpa) to 12 mtpa.

The Indian Ports Association has prepared a feasibility report and suggested an investment of about Rs 30 crore. We plan to take up this project in the latter part of the 10th plan. We do not have any plans to privatise the Complex.

Current year how much are you spending on capital works?
In the current fiscal we are planning to spend about Rs 58.63 crore on the capital plan works.

How does VPT's performance compare with that of other major ports?
Ore Handling Complex loaded 1,15,000 tonnes of iron ore in a day with a single ship loader that is the highest-ever loaded by any major port in the country , and the plant is achieving an average throughput of 60,000 to 70,000 tonnes consistently

Whereas, in some of the ports loading 24,000-30,000 tonnes in a day, is considered a big achievement.

The pre-berthing detention time at this port is only one hour in the current fiscal, compared to 20.6 hours at Kandla, 9.5 hours at JNPT, 8.2 hours at Paradeep etc.

The output per berthday at VPT is close to 11,500 tonnes in the current fiscal compared to 8,143 tonnes at Kandla, 9,322 tonnes at Chennai, and 9,231 tonnes at Haldia ports.

According to data compiled by I-Maritime, a premier research institute, the tonnage handled per employee at this port is 7,400 tonnes as against 3,508 tonnes at Chennai, 5,736 tonnes at Paradeep, 2,730 tonnes at Kochi, 4,404 tonnes at Tuticorin and 6,108 tonnes at Goa.

Despite 33 per cent reduction in manpower, 35 per cent reduction in overtime and despite handling 10 mt additional traffic, the port has achieved the highest compound annual growth rate of 13.98 per cent in productivity in the 9th plan.

The compound annual growth in traffic at this port is 7 per cent as against country's average of 6.6 per cent.

What is VPT's contribution to the the state?
The ports are force "" multiplies of the economy and act as catalyst in the industrial development of the region in particular and economic development of the state in general.

It is understood that one job in port create 10 jobs outside the port which speaks the contribution of the ports to the growth and development of the nation.

The Port of Visakhapatnam has transformed this sleepy fishermen village of 1930's into one of the fastest growing cities of the world. As for VPT's contribution to the city and the state, it is a big list and VPT believes in rendering selfless and silent service to the society.