hard to resist the lure of the ports

Ports have always been key drivers of the economy and there are few factors as attractive to the manufacturing sector as the presence of efficient ports. From automobiles to textiles, steel plants to cement industries, a port at an accessible distance is an attraction that is hard to resist.

exponential growth

What began in the 1930s with only one or two berths, the VPA has expanded to more than 21 inner harbor berths and seven outer harbor berths, all modern and mechanized berths.

But the story of the port is incomplete without mentioning the development it has brought in the hinterland or its role in the overall development of the region and the state, contributing a great deal to the national economy.

The city of Visakhapatnam and its region have grown rapidly since the establishment of the Visakhapatnam Port Trust, now called the Visakhapatnam Port Authority.

After the arrival of VPA, several major private and public sector units (PSUs) and establishments, such as Coromandel Fertilizers, Caltex (now Hindustan Petroleum Corporation), Visakhapatnam Steel Plant, Hindustan Zin Limited, Hindustan Shipyard Limited and Eastern Navy Command established their It was units here. And over the years, industries and establishments have played a significant role in the development of the region and have led the city to become the second largest city in the state, even though Andhra Pradesh was a united state.

start

In the early part of the 20th century, the then ruling British government envisioned establishing a port in present-day Visakhapatnam, Vizagapatam.

On October 7, 1933, the port came into existence when SS Jaldurga, a passenger ship, moored at a single berth at the port. It was then envisaged that the port would handle around 1.3 to 1.5 lakh tonnes of cargo.

Showing rapid growth, Visakhapatnam Port Authority (VPA) has handled over 69 million tonnes of cargo of various types in the 2021-22 financial year alone. It is today one of the top major ports in the country. This year, according to the president of VPA, it is estimated to cross 72 million tonnes.

what’s in store

Probably keeping this in mind, Chief Minister YS Jagan Mohan Reddy is stressing on port based industrial development. In almost every roadshow leading up to the Global Investors Summit, which begins on Friday at the Andhra University’s engineering grounds, he and his team of ministers pitch for using the state’s 974-km coastline to build ports and fishing harbours. is talking about.

talking to HinduIndustries and IT Minister Gudivada Amarnath has said that the government is planning to make six ports. Four of them are on the verge of closure – one private port and three built by the state government.

Overall, we will invest ₹15,000 crore for the four ports and nine fishing harbours, Mr Amarnath said.

According to him, the port at Ramayapatnam, which has an investment of about Rs 3,500 crore, is progressing fast and will be completed by December this year. “We will make the first ship in December 2023,” he said.

He also indicated that the Detailed Project Report (DPR) is ready for Machilipatnam and Bhavanapadu ports, and the estimated cost for both is around ₹8,500 crore.

The government has earmarked around Rs 3,500 crore to build nine fishing ports and as per the Chief Minister’s vision, there should be a port every 50 km along the 974-km coastline and a fishing-related activity.

The ports being built are all deep water ports and the draft can be between 16 to 18 metres. This indicates that the port can accommodate large vessels, including Cape-sized vessels.

what the industry wants

While appreciating the idea of ​​port-led development, industrialists are of the view that mere construction of ports will not lead to overall development of the state.

“It is a good idea to have more ports, as it attracts investments from all sectors, but to stay in the game, we have to build the necessary supporting infrastructure like 24/7 road and rail networks. Barriers should be removed,” said Mr. Sambasiva Rao, Managing Director of Shravan Shipping and Vice President of the National Association of Container Freight Stations.

“The government needs to prepare a masterplan with a vision of at least 50 to 60 years in line with the investments of the industries,” he added.

Another senior industry person pointed out that the government should set up more special economic zones and operationalize proposed economic corridors such as Bengaluru-Hyderabad, Chennai-Bengaluru and Chennai-Visakhapatnam to attract investment.

Shri Sambasiva Rao said that ports should be merged with National Logistics Policy and PM Gati Shakti to make them viable and for better development of the State.

(graphics)

port led development

Operational Ports in Visakhapatnam: Krishnapatnam Port, Gangavaram Port, Kakinada Deep Water, Kakinada Anchorage and Ravva

Visakhapatnam port is the only major port in Andhra Pradesh.

The government has earmarked around Rs 3,500 crore to build nine fishing harbors in the state

Economic Corridors passing through AP-Bengaluru-Hyderabad, Chennai-Bengaluru and Chennai-Visakhapatnam

Government hopes to commission its first ship at Ramayanapatnam in December, 2023

VPT has increased from 1.3 lakh tonnes to 69 million tonnes

All the proposed ports will be deep water ports