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We want make Vizag Port a green port |
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With a BTech from JNTU Kakinada, MT Krishna Babu started his career in the power sector. After working for four years at NTPC, he felt that life had turned too mechanical and should be used to serve people, following which he decided to attempt the civil services exam. Eventually, he ranked 23rd in the civil services and was the topper from Andhra in 1993 batch. As a member of the AP cadre, he has held various positions including that of commissioner of Greater Hyderabad Municipal Corporation (GHMC), secretary of infrastructure and investment department in the AP government. In an interaction with Manish of TOI, the forty-nine-year-old chairman of Visakhapatnam Port Trust (VPT) speaks about the latest developments at the major port.
What are the major modernisation projects completed by VPT in the 2014-15 fiscal?
The port has invested around Rs 2,500 crore for modernisation and to keep pollution levels at a minimum. During the last fiscal, we have completed outer harbour dredging, becoming the first major port with super cape handling capability. Dredging of the inner channel is underway to increase draft from 11 to 12.5 metres and it will reach 14 metres soon. This is the biggest change as earlier every vessel had to be lightened and could only then enter the inner harbour. Now all Panamax vessels can go directly to the inner harbour and super cape vessels can be handled at the outer harbour. Also, VPT is the first major port to have taken up the green channel berth for handling coastal cargo. We have also streamlined ERP so that stakeholders including members of the trade don't have to visit our office. It improves the ease of doing business and is a major achievement for VPT.
What are the upcoming expansion plans of VPT?
We are modernising EQ1A facility with an investment of Rs 400 crore, where the export of coastal cargo is presently happening manually. Modernisation of iron ore berths by Essar at Rs 850 crore, phase two expansion of VCTPL (Visakha Container Terminal Private Limited) at Rs 650 crore, modernisation of four existing berths (EQ 2 to 5) into two berths at Rs 600 crore and construction and mechanisation of EQ 7 and 8 berths at Rs 500 crore are being taken up in this fiscal. By 2018 we will have a capacity of 125 million tonnes and 150 million tonnes by 2020.
What is the status of Sagarmala project and it's benefit Vizag?
The Union cabinet has approved the Sagarmala project and started the Sagarmala Authority. Bottlenecks in the entire port sector are being identified by a consultancy, which would complete a detailed project report. VPT will have a lead as compared to other ports as we were the first to give a draft detailed project report within 15 days of the Sagarmala announcement and were accepted as the pilot project on the east coast along with JNPT Mumbai on the west coast. Vizag will gain as coastal economic region will be developed and industrial clusters will come up in this region.
Are present rail and road infrastructure sufficient to handle future cargo traffic?
Present infrastructure is insufficient as connectivity is poor mainly to our hinterland of Chhattisgarh and Odisha. We are very competitive as a port, but cargo is being routed through other expensive routes due to lack of rakes. The Raipur-Vizianagaram line is a major bottleneck with doubling and electrification likely to be completed by December 2016. This is a crucial railway line for our cargo. Also, we are proposing to convert the two-lane port connectivity road into four-lanes to meet the cargo traffic. We are currently handling around 3 lakh TEUs and plan to go up to 2 million TEUs, which means road movement will be very high. We are proposing alternate connectivity as the present road movement is through a populated area.
The Union finance minister mentioned about the corporatisation of major ports in the last budget. What is the advantage to VPT?
The major advantage is that ease of doing business will improve greatly as we can take decisions faster and difficulties of getting permissions from the government will reduce. Corporatisation will also mean TAMP (Tariff Authority for Major Ports) will be removed and we will be at par with private ports. We can also change our rate structures in competition with neighbouring ports. At present, we do not have any flexibility, but with removal of TAMP we can definitely give them a run for their money as we know our strengths.
Why did cargo traffic drop at VPT last year? What are the challenges to VPT?
There are two reasons for the drop. One is the inner channel dredging was underway due to which we were navigating vessels on every alternate day. Second reason is railway evacuation is poor due to which our vessels are getting diverted due to longer waiting time. Also, iron ore export has dropped due to high price of ore from NMDC, whereas imports won't come here as Krishnapatnam is better suited logistically to cater to the market in Karnataka. Import of coal is coming down due to new mines, so that will be a challenge. Until railway infrastructure improves, there will be pressure on us. We will be in a comfortable position once iron ore exports improve. But, we are aggressively marketing our port for other cargoes such as scrap iron, wood chip imports and alumina to improve our traffic.
VPT is being blamed for pollution and beach erosion among other environmental issues. Do you agree?
There has been a drastic drop from 400 to 80 in RSPM levels (10 microns) during last five years because of mechanisation at VPT. In comparison, pollution levels in Delhi are reaching 250 even without a port. But in order to reduce pollution levels further, we are also reorganising the stacking space so that only clean cargo is located on the periphery of the port area. With respect to beach erosion, the outer harbour came up in 1976 and any major erosion would have been noticed within one or two years itself. In the original design itself we placed the sand trap and ever since using it for beach nourishment. It has worked fine till 2009-2010, but after that sand is insufficient. Why? Because sand drifts from south to north, but the Gangavaram port breakwater has come up and drifting of sand has dropped. We are spending Rs 12-13 crore every year for beach nourishment, but what is Gangavaram Port's contribution? When new ports come up, state government has to enforce on them to take up beach nourishment. Moreover, beach erosion is not specific to Vizag. Out of the 976 km of coastline, 243 km is witnessing erosion in AP. It is a continuous phenomenon as the sea is aggressive and more visible in Vizag as it is a populated city. For every problem there is a solution and all stakeholders need to work together to resolve the problem.
Are restoration of VPT's assets damaged during Cyclone Hudhud complete?
Designs for Offshore Tanker Terminal (OSTT) is being finalised and we will have new designs in another two months. We will call for tenders after that to restore OSTT.
The state government is planning a string of ports in AP. Will it affect VPT?
Unless backbone infrastructure is improved, putting in more ports will lead to further congestion. We are largely dependent on Chhattisgarh, Odisha and parts of Madhya Pradesh for our cargo. If Bhavanapadu port comes up, then again it will be dependent on RV line, which means VPT and Gangavaram will have to compete to supply to industries in Chhattisgarh. If a port comes up at Machilipatnam, then both Kakinada and Krishnapatnam will be affected. Focus should be on growth of industries in AP without which having only ports will be counter-productive.
What is VPT's game plan to be number one among major ports?
VPT cannot be number one in terms of volume as Kandla and Paradip ports have a rich hinterland without much competition as they have major industries coming up in sectors such as steel, aluminium and power with each major industry requiring around 5 million tonnes of cargo. So naturally they can grow substantially. But, our port will have a capacity of 150 million tonnes and our main intention is to make it environment friendly. We want to focus on making Visakhapatnam Port as a green port to cater to requirements of the city.
Source : timesofindia.indiatimes.com
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