VISAKHAPATNAM PORT TRUST
Strategy Document aligned with Ministry of Shipping
In compliance of Action Point under RFD 2014-15 to meet the
Mandatory objective of improving internal
efficiency/responsiveness
INDEX
Sl.No.
1
Section
Section - 1
Subject
VPT’s Vision, Objectives and
Pages
1
Functions
2
Section - 2
Assessment of the situation
2
3
Section - 3
Outline of the strategy as per
3
Maritime Agenda and 12th Five
Year Plan Document
4
Section - 4
Implementation Plan
5
Section – 5
Linkage between the Strategic
4-6
7
Plan and RFD
6
Section - 6
Cross departmental and cross
functional issues
7
STRATEGIC PLAN DOCUMENT OF THE PORT OF VISAKHAPATNAM
Section: 1 Vision, Objectives and Functions
Vision
To be the most preferred Multi cargo Port and container hub on the
East Coast offering services of Global standards with deep draft
facilities, mechanised cargo handling systems and effective cargo
evacuation systems duly protecting the environment
Mission
To offer world class logistic solutions with minimal cost to
stakeholders, including industry, employees and other port users
Objectives
S. Objective of Port
No.
Aligned
objective
of MoS
1.
To augment Capacity of the Port
1
2.
To Maintain / improve draught of channels for berthing 4
of ships
3.
To provide prompt efficient, safe services at optimum 2,9
cost
4.
To increase traffic throughput
2,9
5.
To continually improve our services to meet the 2,9,13
expectations of the port users, employees and the
society
6.
To provide cost effective operations
2,4,9
Functions:
1. Formulation of projects/schemes including PPP projects for
enhancement of capacity
2. Ensure timely implementation of projects
3. Assist the Ministry in formulating the policy for the Ports
4. Carry out capital and maintenance dredging
5. Provide efficient cargo handling facilities by improving turn round
time
6. Provide cost effective port and dock facilities
7. Redressal of grievances of stake holders
8. Prevention and control of pollution arising from port operations
including oil pollution
1
Section 2: Assessment of the situation
Port of Visakhapatnam located almost midway between Kolkata and Chennai on the
East Coast of India, has been serving a vast hinterland since 1933. The Port is
natural port endowed with deep water basin. The Port has two harbours viz. inner
harbour encompassing a water area of about 100 hectares and the outer harbour
has a protected tranquil basin of 200 hectares.
The port of Visakhapatnam has a vast hinterland and serves major industries of the
economy which include petroleum, steel, power, mining and agriculture besides
handling containers for the consumer market contributing significantly to the
economic development of its hinterland. The Port is surrounded by many major
industries such as M/s RINL, SAIL, NALCO, NMDC, MMTC, Hindustan Shipyard,
Coromandel International Ltd., RCL, HPCL, IOC, BPCL, GAIL etc. within the vicinity
of port. The Headquarters of Eastern Naval Command and the Hindustan Shipyard
Ltd., also exists adjacent to Visakhapatnam port.
The port has a capacity of 87.76 million tonnes as on 31.3.2014. The port handled a
cargo throughput of 58.50 million tonnes during 2013-14.
2
Section 3: Outline of the strategy as per Maritime Agenda and 12th
Five Year Plan Document
3
The Department of Shipping has formulated Maritime Agenda 2010-2020
during January 2011.
Planning Commission has also released Report of the
Working Group for Port Sector for 12th Five Year Plan. The projected traffic, capacity
and investments for XII Plan period as per Maritime Agenda and XII Plan Working
Group Report are as under:
3.1
Maritime Agenda
The projected traffic as per Maritime Agenda 2010-2020 by end of 2016-17 is 83
million tonnes and 103 million tonnes by 2019-20. The capacity envisaged is 140
million tonnes and 149 million tonnes by 2016-17 and 2019-20 respectively. To
enhance the capacity, the investment proposed for various capacity augmentation
schemes is Rs. 13,940 crores of which about Rs. 7,100 crores is proposed to be
funded through PPP mode.
3.2
12th Five Year Plan
The traffic projections as per Working Group Report for the 12 th Five Year Plan is 80
million tonnes and the capacity envisaged is 130 million tonnes by end of 2016-17.
The proposed investment for the development and modernization of Port is Rs.
5,404 crores of which Rs. 3,366 crores is proposed to be funded through PPP mode.
3.3
Dredging
Major objective as per Maritime Agenda – 2010-2020 is that Port in India to increase
the draft to at least 14 mtrs. by end of 12th Plan period and achieve 17 mtrs. draft in
Hub Ports according to the potential of bigger size ships calling at these ports.
3.4
Electronic Data Interchange
Port
Community
System
(PCS)
to
integrate
the
electronic
flow
of
document/information and function as centralized hub for all the major Ports of India
and also stakeholders like shipping lines/agents, surveyors, stevedores, banks,
container freight stations, custom house agents, importers and customs.
3
Section 4: Implementation Plan
4.1
Capacity augmentation
The Port has awarded nine (9) projects at an investment of Rs. 3,142 crores and the
capacity addition through these projects is 48.43 million tonnes. The project-wise
details are as under:
 Installation of mechanized coal handling facilities and upgradation of General
Cargo Berth in outer harbour to accommodate 2 lakh DWT carriers with a
capacity of 10.18 MTPA at a cost of Rs. 640.40 crs. The berth was made
operational w.e.f. 8.4.2013
 Development of EQ-1 berth in inner harbour for handling steam coal with a
capacity of 6.41 MTPA at a cost of Rs. 323.7 0crs. The berth was made
operational w.e.f. 2.9.2014
 Development of WQ-6 berth in inner harbour for handling dry/break bulk
cargoes with a capacity of 2.08 MTPA at an estimated cost of Rs. 114.50 crs.
The project is likely to be completed by March 2015
 Development of EQ-10 berth in inner harbour for handling liquid cargoes with
a capacity of 1.84 MTPA at an estimated cost of Rs. 55.38 crs. The project is
likely to be completed by March 2015
 Development of EQ-1A berth in inner harbour for handling Thermal coal
steam coal (back loading) with a capacity of 7.36 MTPA at a cost of Rs.
313.39 crs. The project is scheduled to be completed by March 2016
 Up-gradation of existing berth in outer harbour and creation of new facility in
inner harbour for iron ore with a capacity of 23 MTPA at an estimated cost of
Rs. 845.41 crs. Concession agreement signed and the project is likely to be
completed by March 2016
 Installation of mechanized fertilizer handling facilities at EQ-7 berth in inner
harbour with a capacity of 5.21 MTPA at an estimated cost of Rs. 217.58 crs.
 Extension of existing container terminal in outer harbour with a capacity of
0.54 MTEUs at an estimated cost of Rs. 633.11 crs. Concession agreement
signed and the project is likely to be completed by end of 2016
 Development of West Quay North berth (WQ7 & WQ8) in inner harbour for
dry bulk cargoes with mechanized handling facilities with a capacity of 6.39
MTPA at an estimated cost of Rs. 195.30 crs.
4
On commissioning of all these projects, the Port will have capacity of about 124
million tonnes by 2016-17.
4.2
Other initiatives
 Replacement of existing East Quay berths to cater to 14 mtrs. draft vessels
including mechanization
 Installation of harbour mobile cranes at inner harbour berths
 Electrification of Railway tracks to coal terminals of PPP projects
 Revamping of R&D Yard to Railway standards by i) replacement/renewal of
railway and ii) providing RRI for R&D Yard and panel interlocking for individual
cabins at VPT by Eco Railways under deposit scheme
 Development of existing Port connectivity road to NH-16 from two lane roads
into four lane road (JV with NHAI)
 Development of Multi Modal Logistic Hub (MMLH) as JV between VPT and
Balmer Lawrie & Co. Ltd.
 Development of CFS by BOT Operator in the Port area
 Development of multi model logistic hub by CONCOR
 Multi Modal Logistic Park at Valluru village, Anakapalli (phase-I)
 Development of dedicated berth for coastal cargo
4.3
Dredging
As envisaged in Maritime Agenda that Port in India to increase the draft to at least 14
mtrs. by end of 12th Plan period and achieve 17 mtrs. draft in Hub Ports according to
the potential of bigger size ships calling at these ports, the Port has taken up the
following deepening projects from Port’s internal resources:
 Deepening of outer harbour to facilitate navigation of vessels of draft upto 18
mtrs. has been completed by December 2014. The cost of the project is Rs.
135 crs.
 Dredging of inner harbour channel and turning circle to facilitate navigation
of Panamax vessels with a draft upto 14 mtrs. including dredging of
Northern Arm of inner harbour at an estimated cost of Rs. 252 crores . The
dredging is scheduled to be completed by March 2015.
5
4.4
Electronic Data Interchange
ERP & PCS
The Port has taken up implementation of integrated Enterprise Resource Planning
(ERP) systems and centralized Port Community Systems (PCS).
ERP
In addition to the SAP modules covered under ERP, the Port has operationalized a
web based application – Port Operations System (POS) as a core module covering
all operations viz. shipping, railway, marine, commercial and the support services.
All the stakeholders of Port have been provided with access to web based Port
Operations Systems (POS).
The entire POS application has been designed to
eliminate manual interventions and online submission of documents electronically.
The POS application works 24 X 7 and all services are being provided round the
clock to its stakeholders. POS is an end-to-end web enabled application which
include finalization of all the bills with minimum time, providing statement of accounts
to the users, allotment of stacking areas, request of movement and automated berth
allocation as per VPT berthing policy, online issuance of Trade licenses, men
material and equipment passes, entry and clearance certificated etc., maintaining the
payment gateway of PCS for various banks etc. There are bench marks for the
services and web enabled grievance management system.
Port Community System (PCS)
The Port has integrated PCS message exchanges system with Port Operations
System module of the ERP.
The stakeholders like Port Authority, shipping
line/agents, Stevedoring agents, terminal operators, Surveyor, Transporters, Banks,
Customs, Port Health Officer, Mercantile Marine Dept., Immigration are in the
domain of PCS.
6
Section 5: Linkage between Strategic Plan and RFD
The objectives and corresponding action indicated in the RFD follow from the
strategy document of Ministry of Shipping.
Section 6:
6.1
Cross departmental and cross functional issues
Section 5 of RFD 2013-14 which lists specific performance requirements
from other Departments.
Planning Commission, Ministry of Home Affairs and
Ministry of Environment & Forests are required to be consulted for project clearances
and legal vetting
6.2
VPT has formulated a Citizen’s Charter enumerating time limits for various
processes as well as contact information of all officers concerned in case of failure to
meet the standard timelines of Citizen’s Charter.
6.3
ISO 9001, ISO 14001 and OHSAS 18001have been successfully
implemented in the Port.
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