Ore handling complex helps Vizag port save Rs 72 cr

Our Bureau

VISAKHAPATNAM, Nov. 29

THE Vizag Port has notched up a saving of Rs 72 crore over the past three years through improved performance of the 25-year-old Ore Handling Complex (OHC). This assumes significance in the light of the fact that the facility, even till a few years ago, was the source of major problems for the port, resulting in drainage of significant foreign exchange in the form of demurrages.

The facility handles iron ore, one of the predominant export cargoes, constituting 50 per cent of the port's total exports and 20 per cent of its throughput. So far, about 190 million tonnes of iron ore were exported using the OHC, which has a rated capacity of 8 million tonnes per annum.

The port was not able to achieve optimum loading rate till 1998 due to several operational constraints, resulting in delays and payment of huge demurrages. "The incidence of demurrage, which was of the order of Rs 37.41 per tonne in 1997-98, has come down drastically to Rs 2.49 in the current fiscal. This we could achieve with minor modifications and consistent monitoring of the OHC operation,'' a senior VPT official told Business Line.

Prior to 1997-98, the OHC's loading rate hovered between 25,000-40,000 tonnes per day, with a loading rate of over 50,000 being a "rare achievement''. But today, according to the official, a loading rate of 60,000 to 70,000 tonnes is frequently recorded and 50 per cent of the vessels is registering a loading rate of over 50,000 tonnes.

Further, the average waiting time of iron ore vessels, which was around 2.05 days in 1997-98, was slashed to 10 hours last fiscal and 5.5 hours so far in the current fiscal. "Thus, while the average loading rate rose from 27,284 tonnes per day in 1997-98 to 47,387 tonnes per day last fiscal, marking a 74 per cent increase, the average stay of iron ore vessels at the port decreased from 8.67 days to 3.38 days during this period, an improvement of 61 per cent,'' the official said.

The performance of the three wagon tipplers at the OHC, which used to pose serious operational problems, is particularly marked. As per the agreement with the Railways, the port gets a free time of 8.5 hours for tippling of rakes; in other words wagons which are tippled beyond 8.5 hours will attract hire charges. But, owing to 65-per cent tippling of the rakes within the free time, the port saved Rs 22 lakh in hire charges. In fact, during the first seven months of the current fiscal, the port saved Rs 40 lakh through the improved performance of the tipplers. "On November 1, five iron ore rakes were tippled in a record time of eight hours,'' the official said.