The Visakhapatnam port has improved its performance from the last financial year, but it is still likely to fall short of the target set by the Union Shipping Ministry. At a target of 70 million tonne, the port is likely to finish 2-3 mt short. The port’s performance should be viewed in perspective, as it is facing stiff competition from Gangavaram port for the past two years. The new port has grabbed 5 mt or more of the cargo, which used to be handled by the Vizag port, coking coal imported by Visakhapatnam Steel Plant and other cargoes. Gangavaram port is conveniently located for VSP, and the port has also installed mechanised handling facilities. In spite of the loss of a substantial chunk of cargo, Vizag has done fairly well. It has taken up a number of projects, such as the upgrading of the outer harbour general cargo berth and construction of more berths in the inner harbour with private participation, to face the challenges posed by private ports.