VPT plans single buoy mooring berth

The Visakhapatnam Port Trust (VPT) has proposed to construct a single buoy mooring (SBM) berth at its outer harbour.

The construction cost is estimated to be around Rs 350 crore, and VPT is trying to tie up with a public sector undertaking, Hindustan Petroleum Corporation (HPCL), to take up this project.

Once the single buoy mooring berth is completed, Visakhapatnam Port will be the third major port in the country to have such facility.

At present, only Kandla Port is having a SBM, while Cochin Port is constructing one SBM at its outer harbour.

"The setting up of this facility will primarily help HPCL. So we are asking HPCL to fund some amount for this project," said K Ratna Kishore, the chairman of VPT.

Once the single buoy mooring berth is completed, the Vizag Port can unload crude oil and other petroleum products from the outer harbour with higher speed and can handle ultra large crude carriers (ULCCs).

The crude unloading speed rate will be very high in the SBM, and so the vessels hiring charges will come down drastically. The port handling charges too will be reduced by nearly 40-50 per cent.

"HPCL plans to increase its refining capacity at its Vizag refinery to 100 lakh tonnes from the existing 75 lakh tonnes. With the completion of the SBM, HPCL crude imports will increase further. Since HPCL is the main beneficiary, we are trying for a financial tie up with HPCL. We recently had talks with the HPCL officials on this issue, and they agreed to utilise the proposed SBM. They are yet to give a nod for equity participation," Ratna Kishore said.

"We will try to convince the HPCL management about the project. If they will not come forward for equity participation, we will look for a potential private investor for the project," he added.