Kandla Port to be first warehousing hub

The Kandla Port is all set to anchor the country's first warehousing hub, at a cost Rs 200-300 crore. The project will be developed jointly by Kandla SEZ and IL&FS.

The chairman of Kandla Port Trust, Janardhana Rao said, "We have allotted 100 acres of land and the project will be jointly developed by Kandla SEZ and IL&FS. The aim is to convert the port into a warehousing hub of India by creating additional infrastructural facilities."

When contacted IL&FS officials refused to comment. However, sources informed that as per estimates, the project is likely to cost about Rs 200-300 crore. If the project succeeds, IL&FS is planning to set up similar facilities in Noida and Cochin, sources said.

International trading agencies too will have their storage facilities in the port, sources close to the development said.

The international players will be able to store their commodities and as and when the market conditions are favourable, they can sell their products to both domestic and international markets.

Also, many big Indian players, who manufacture raw materials, finished products or commodities such as grains, pulses, coal and liquids, will have their storage facilities here, sources informed.

The initiative, taken a few years back by the Kandla Port Trust in attracting private participation for development of liquid tankage facility for storing liquid cargos, has resulted in over 8 lakh kilo litres of liquid storage tankage built and is operated by private parties at Kandla.

In the last few years, Kandla Port has earned the distinction of providing the largest liquid storage facility with a capacity of 19.69 lakh kilo litres in Asia for handling liquid cargo at competitive and economical rates, according to Rao.

The port authorities have also improved the liquid handling facilities by connecting the tank farms directly to all its oil jetties through pipelines.

Similarly, private participation has been successfully thrown open for providing storage godowns outside the port to be used by the importers and exporters for storage of their cargos.

About 20 plots have been allotted for warehouse facility outside the port for setting up container freight stations and warehouses, sources said.

The port has handled 45.91 million metric tonne of cargo, from 2,124 ships, in 2005-06, as its share in the total tonnage of (383) million metric tonne, handled altogether by the 11 major ports of the country.