Private ports in Andhra Pradesh are giving a tough competition to the government-owned major port, Visakhapatnam or Vizag port. Gangavaram and Krishnapatnam are the two private ports in the state's east coast and their competition has caused a fall in Vizag airport's iron ore exports in recent times. Visakhapatnam port is mainly dependent on bulk cargoes. However, Gangavaram port is grabbing a sizable chunk of cargo of Vizag port's business.
With this, now the Vizag port authorities have decided to offer incentives to port users to withstand the competition from the two private ports. The prot is considering concessions to the port users for a period of six months as the Krishnapatnam port is offering hefty discounts already to its customers.
Gangavaram Port is investing Rs 1,200 crore on its second phase of expansion to raise the capacity from 17 mt to 45 mt by March, 2014. The port is also grabbing a sizable chunk of cargo to be handled by Visakhapatnam Port due its locational advantage. Gangavaram is located in the backyard of Visakhapatnam Steel Plant.