Kolkata Port to invest Rs787.5 crore by 2007

Kolkata Port Trust (KoPT) would undertake modernisation, renovation and replacement programmes worth Rs 787.5 crore by 2007, most of which lay ahead.

KoPT was considering the possibility of setting up a ship building facility as well as ship breaking facility near the existing port, the trust chairman A K Chanda said here today.

"With freight rates on the downward turn, and vessel retirements, prospects of the ship breaking industry has improved a lot and this would be right time to set up such facilities ," Chanda said.

The port had earlier taken up a Rs 385-crore river regulatory project to increase the draft at Kolkata dock system.

However, the project was shelved and a new plan was awaiting approval.

KoPT decided to invest Rs 50 crore in 2005-06 to improve handling facilities.

"The quantum of investments of KoPT will rise because the port is keen on tying up with enterpreneurs for investments in the docks," explained Chanda.

The port became the second largest port in the country by handling 46 million tonnes of cargo in 2004-05, and reported operating profit of Rs 327.29 crore on the back of operating income of Rs 1003.50 crore in the fiscal.

In fiscal 2003-04, KoPT had reported operating surplus of Rs 956 crore and operating profit of Rs 282.89 crore.

However, one of the most ambitious projects of the port was still hanging fire.

More than a year after KoPT envisaged building port facilities in Saugor, it is still awaiting the final feasibility study report from Japan International Cooperation Agency (JICA).

JICA was handed the assignment a little more than ayear ago.

The facility was proposed to be set up at Saugor near the sandheads at the mouth of river Hooghly.

"We are still awaiting the feasibility report from JICA and once it is received, KoPT will proceed with its plan to set up the port facilities there", Chanda said.

Dismissing reports that the shipping ministry had fixed the draft at 16-17 metres for financing major ports, Chanda said, "The goverment has only issued guidelines and will definitely consider fund release taking into account the nature of different ports and regions."

Sagar offered draft of 12.5 metres but the ministry was expected to consider it in view of its special features, as KoPT was the only riverine port in the country.

JICA was to prepare a feasibility report for a full-fledged cargo handling facility at Sagar to avail the deep draft available there as the draft at Kolkata and Haldia docks was below 9m.

Kolkata dock system had average draft of seven metres, while the draft at Haldia was about 8.5 metres.