Visakhapatnam Port Authority plays a significant role in the country’s ports and shipping sector.
Ranked among the top 4 major ports of the country, VPA has been marching ahead towards becoming a landlord port by the year 2030.
The port under the chairmanship of Dr. Madhaiyaan Angamuthu, IAS, has received several accolades in the recent past for its outstanding performance while continues to break records every now and then.
From handling its highest cargo since inception to its container terminal being ranked in the world’s top 20 by CPPI major port VPA has been on a roll.
However, with tough global market conditions and changing geo political scenarios the shipping and ports sector is going thru taxing times.
Despite this VPA has set an ambitious target of yet again breaking its previous record (done last fiscal) and achieving a record breaking 90 MT in FY 25.
In an exclusive interview to Vizag Industrial Scan, VPA’s dynamic and charismatic Chairman spoke on a slew of topics related to VPA and the overall market scenario.
1.Sir first of all congratulations on VPA’s achievement of handling the highest cargo since inception last fiscal. What led to this achievement?
VPA achieved this milestone of 81.09 MT due to strategic initiatives, including infrastructure enhancements, streamlined operations, digital integration, and improved stakeholder engagement.
Consistent efforts to attract new cargo streams and maintain operational efficiency were key drivers
2.What is VPA’s cargo handling target for this year?
VPA aims to surpass its previous record by focusing on diversifying cargo, enhancing operational efficiency, and leveraging strategic infrastructure projects and set an internal target of 90 MT.
This record will be achieved with the support and participation from all our stakeholders.
3.VCT’s CPPI 2023 ranking and its significance.
Being ranked in the world’s top 20 demonstrates VPA’s competitiveness and efficiency in container handling.
It positions VPA as a hub for global trade, boosting confidence among shipping lines and stakeholders.
Recently the port handled MSC TOPAZ with 366 Mts LOA which is the highest length vessel handled. Earlier in May 2024, the port handled Monica Christina with 15.4 Mts draft, 15,256 TEU vessel which is the highest draft vessel.
This demonstrates that the terminal has good infrastructure to handle Next Generation vessels.
4.What has been the Impact of global geopolitical scenarios?
Global shipping faces challenges such as high fuel costs, supply chain disruptions due to Red Sea crisis, and shifting trade routes.
VPA mitigates these by adopting flexible strategies, maintaining cost efficiency, and prioritizing cargo diversification.
5.What will the transition to a landlord port have on local operators?
The port has plans to go complete land lord by 2030. As a landlord port, VPA focuses on common infrastructure and regulatory functions, offering opportunities and services for stevedores and PPP/BOT operators to grow business at VPA.
Also please understand that transitioning into a landlord port will only benefit the private sector. When we go from 81 MT to 90 MT this extra cargo brings in more opportunities for the private players in turn enhancing their business prospects too.
6.What is the Privatisation status of berths?
VPA currently operates 8 berths under PPP/BOT mode, with plans to go for PPP/BOT/Captive mode the remaining berths. This ensures increased investment in mechanization and efficiency in operations. In next 6 months 3 more berths (WQ-1,2,3) will be offered for private investment.
7.What efforts are being made to improve cargo evacuation and connectivity?
VPA is expanding road and rail networks, including upgrading the port connectivity road to 10-lane connectivity and optimizing yard operations, to ensure seamless cargo evacuation.
Storage spaces will be utilized optimally for the EXIM cargo for which there is exercise going on.
8.When will VPA be able to handle capsize vessels in the inner harbour?
Draft enhancement projects are underway, targeting 16.5 meters to accommodate capsize vessels for which a study was entrusted to IIT Chennai. Recently the IIT Chennai team visited the port and made preliminary study. After DPR submitted by IIT, the details will be shared
9.Impact of Gati Shakti on VPA operations.
The Gati Shakti initiative integrates infrastructure development, streamlines connectivity projects, and significantly enhances operational efficiency at VPA by avoiding project delays.
10.What is the average turnaround time at VPA compared to other ports?
VPA boasts one of the best turnaround times in the country due to efficient resource allocation and technological advancements, placing it ahead of several major ports. The Container TRT is just 0.89 days which is better than JNPA 0.92 days for FY24.
11.What Impact has Gangavaram Port had on VPA?
There is impact with Gangavaram port in the nearby location. However, the port has diversified cargo mix with which we have overcome the competition.
12.Container terminal operations at Gangavaram and its impact on VPA.
While Gangavaram’s operations may present competition, VPA continues to focus on providing superior services and leveraging its strategic advantages and partnerships.
13.Your message to Trade and the shipping community.
VPA is dedicated to achieving excellence in port operations through continuous engagement with all stakeholders, adopting advanced mechanization, and strengthening collaborations with shipping lines to address the dynamic demands of the shipping industry.
