Coal news and updates

US-based Rain CII extends MoU with Vizag port

September 10: Calcinated pet coke producer US-based Rain CII India has recently extended its memorandum of understanding (MoU) with Visakhapatnam Port for usage of the latter's berths with assured cargo traffic by another two years effective November 2014, Vizag port said in a release.

The extension of the MoU was due since November 27, 2012, but the port has agreed to renew it till November 26, 2014.

According to the MoU, Rain CII would get preferential berthing facilities at the port and, in return, will ensure that a minimum of 1 million tons of cargo is moved through the port in a year.

The signing of the MoU augurs well for Visakhapatnam port which had been facing stiff competition from nearby Gangavaram port since it came up a few years back, industry sources said.

"A number of companies, which used to unload their cargo, mainly coal, through Vizag port earlier had been using Gangavaram over the past few years because the latter offers deep draft and much better services," the source added.

The MoU will ensure that Vizag port gets assured cargo from Rain CII, which, in turn, is expected to get comparatively cheaper service charge, the source said.