The Hindu Business Line : Gangavaram port getting ready

Advantage Gangavaram
The port has the deepest draft in the country (21 metres) as against the 11-12 m of the inner harbour at Vizag port.
Even 2 lakh-dwt vessels can be handled at the Gangavaram port.
This enables the Vizag steel plant to import coking coal and other raw materials in greater volumes.

Our Bureau

Visakhapatnam, April 23 The Gangavaram port is getting ready for operations, with five berths in the first phase, and the inauguration may take place sometime in May/June, according to sources.

The commissioning of the port is a welcome development for the Visakhapatnam Steel Plant, as it is situated in the backyard of the plant, enabling the latter to cut down substantially on freight.

Currently, the Visakhapatnam steel plant, with a capacity of three million tonnes (hot metal), imports 3-3.5 mt of raw materials, mainly coking coal from Australia, limestone, boiler coal and iron ore pellets. The material is discharged at the Visakhapatnam port in the inner harbour and brought to the plant by rail.

It is estimated that the plant spends Rs 120 crore-130 crore a year on rail freight and, with the commissioning of the Gnagavaram port, the need for rail transport is obviated. The material is imported at Gangavaram and taken to the plant through conveyor belts.

Deepest draft

Another great advantage with the Gangavaram port, say the plant sources, is that it has the deepest draft in the country (21 metres) as against the 11-12 m of the inner harbour at the Visakhapatnam port.

Therefore, it is possible to handle only smaller vessels (50,000-70,000 tonnes) in the inner harbour at the Vizag main port.

On the other hand, it is stated, even 2 lakh-DWT (dead weight tonnage) vessels can be handled at the Gangavaram port.

This enables the plant to import coking coal and other raw materials in greater volumes at a time.

According to rough estimates, it may be possible for the plant to save 30 per cent or so on oceanic freight or at least $5-8 a tonne. As the plant is executing the expansion project to double its capacity to six million tonnes, the Gangavaram port is of immense help in its growth path.

NO congestion

Apart from the reduction in freight, say plant sources, the going will be much easier for the VSP at Gangavaram, as it is a new port and there is no congestion. As it is a fully mechanised port, the discharge of material will be much faster and there will not be any hassles.

The Visakhapatnam steel plant and the Gangavaram port have come to an understanding, reserving two berths for the plant for its imports and exports. The plant also exports six lakh tonnes of steel products. The port comes in handy for the purpose.

While it is a win-win situation for both the Gangavaram port and the steel plant, the situation is not so happy for the Visakhapatnam main port. The Vizag port has already slipped to the second place among major ports during 2007-08.

The port straightaway loses 3-3.5 million tonnes of cargo to the new port..