Visakhapatnam port being expanded as second gateway for Nepal

Visakhapatnam port is undertaking significant expansion in capacity, which include construction of new berths and terminals, modernising berths with state of the art loading/unloading equipment to improve operational efficiency and deepening of channels to accommodate larger vessels.

India on 18-22 August 2009 and subsequent meeting of Inter-Governmental Committee in Kathmandu,

The Port of Visakhapatnam has been notified as the second gateway port for additional transit facility to Nepal as per an August 2009 agreement. The agreement provides for transport of the cargo through the rail route connecting Visakhapatnam-Jogbani or/and Visakhapatnam-Birgunj.

In addition, the development of Vizag General Cargo Berth (VGCB) with integrated mechanical coal handling will help the major ports to handle Super Cape Size vessels while the development of Vizag Coal Terminal (EQ-1) in inner harbour with integrated mechanised steam coal handling facility on DBFOT basis will increase its coal handling capacity.

Vizag Port will develop the WQ-6 berth in inner harbour on DBFOT basis, adding 2.08 million tonnes of handling capacity and develop the EQ-10 berth in inner harbour on DBFOT basis to raise capacity by 1.84 million tones.

It is also developing two berths in the inner harbour for handling coastal cargo as a Green Channel Berths. This will include development of EQ-1A berth in inner harbour on DBFOT basis with a capacity of 7.36 MTPA, up-gradation of existing facility and creation of new facility for iron ore through integrated mechanized handling system on DBFOT basis with a capacity addition of 7.50 MTPA.

Existing container terminal at outer harbour is being extended on DBFOT basis with a capacity of 0.54 MTEUs.

The expansion plans will also include:

• Development of West Quay North berth (WQ-7 & WQ-8) in inner harbour with a capacity of 6.39 MTPA;
• Development of multi-purpose terminal by replacing EQ-2 to EQ-5 berths in inner harbour with a capacity of 6.0 MTPA; and
• Installation of 2 mobile harbour cranes on license basis with a capacity of 3.0 MTPA.

Besides, in order to reduce tariff to drive higher productivity, improve utilization of assets and increase competitiveness of major ports, the port has ubdertaken measures like:

• Productivity norms for different types of cargoes are being fixed on a scientific basis in a phased manner and being implemented;
• 40 per cent rebate in vessel and cargo related charges given for coastal vessels;
• Cargo handling levy on general cargo, bagged cargo, steel and project cargo removed completely;
• Cargo handling levy on unloading of thermal coal wagons reduced from 499 per cent to 150 per cent.
• Concessions are being extended to the tune of 100 per cent, if 20 per cent growth is shown over previous year's cargo handling;
• 25 per cent discount on the sum of port dues and pilotage on scale of rates approved by TAMP for all container vessels, including mainline vessels, irrespective of the size of vessels (GRT) in terms of the provisions of clause 12 of TAMP Approved Scale of Rates, 2011;
• 50 per cent concession for mainline container vessels of 50,000 GRT and above; and
• 50 per cent concession for all container vessels when the service is giving direct connectivity to ports not covered by existing lines.

The steps taken by the port has resulted in significant improvement in efficiency parameters of the port, including pre-berthing detention time, berthing time, average turnaround, average output per ship per berthday and cargo throughput.

As per agreement finalized during official visit of Prime Minister of Nepal to India on 18-22 August 2009 and subsequent meeting of Inter-Governmental Committee in Kathmandu, the Port of Visakhapatnam has been notified as 2nd Gateway Port for additional transit facility to Nepal. The agreement provides for transport of the cargo through the rail route connecting Visakhapatnam-Jogbani or/and Visakhapatnam-Birgunj. In addition to the rail route, four road routes have also been identified which are as under:

• Vishakhapatnam-Cuttack-Kharagpur-North Kolkata-Biratnagar.
• Vishakhapatnam–Cuttack-Ranchi-Patna-Muzaffarpur-Raxaul- Birgunj.
• Vishakhapatnam-Cuttack-Ranchi-Aurangabad-Varanasi-Gorakhpur-Bhairahwa.
• Visakhapatnam-Cuttak-Ranchi-Aurangabad-Varanasi-Lucknow-Nepalgunj.

The movement of traffic-in-transit between Port of Visakhapatnam and Nepal will be in sealed containers and in full rake only and the cost of transhipment will be borne by the consignor/consignee.