Kolkata Port Trust (KoPT) is going through a tough time in the midst of a financial crisis, while projects are progressing in snails pace. Chairman ML Meena expresses his views on the row with Orissa government over area extension and the port’s plans ahead in an interview with Shine Jacob. Edited excerpts:
What is happening with the plan to set up transloading terminal? What is the status of your conflict with Orissa over the extension of KoPT area up to Kanika sands? What about reports that you have started operations there by handling a ship called Merina-R?
We have not started operations and neither handled any vessel. What happened is that the transhipment terminal was very much on time. Meanwhile, Orissa government and Dhamra port had gone to Orissa High court and filed a litigation.
The case was heard last month and we are awaiting the judgement now. Though we approached the Supreme Court too, it asked us to wait for the HC judgement.
This project is extremely important for the survival of the Kolkata port. I think transloading should have been done about five years back. though investment is not much about Rs 400 crore, more important is that since it is a riverine port and we have draft problems, it is important for our existence. For the transloading facility, we had invited bids and have already shortlisted three firms.
Last fiscal KoPT had reportedly posted a profit of Rs 144.05 crore. What is your outlook on the port’s performance this fiscal?
This year, cargo is not coming as expected because of the slowing down of the economy. Due to some problem with the mining areas, iron ore handling is also down and same is the case with crude. So, I think that there may be only a marginal increase in profit. But the thing is that the figure is profit before tax and this profit is going as pension liability too.
We have a huge pension liability, an estimated Rs 150 crore annually for nearly 33,000 pensioners. The port needs a reserve fund of atleast Rs 3000 crore to take care of pensioners liability and other liabilities.
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Last year, we have handled atleast 47 million tonnes of cargo which is expected to increase to 49 MT this fiscal. For us draft is a bigger problem and all the ships coming here first ho to Paradip and Vizag to half unload. Dhamra is also giving a competition to us now as they have good draft.
What about other important projects like Haldia Dock II and Diamond Harbour container terminal?
Haldia Dock II will see an investment of Rs 1,200 crore and the size of the facility would be 20 million tonnes, with four berths. We have invited the request for quotation (RFQ) for this and about 30 players have shown interest. We are doing technical evaluation of it and once it is complete we will invite price bid. PPP will be finalised by 2012-13 and the project may be commissioned by 2013.
For Diamond Harbour project, there was a land issue with the defence department stopping the progress of the project, which has been sorted out.
We have invited an RFQ and pre-bid meeting was held. We are looking to finalise the bid in next six months. Even 1200 TEU vessels can copme here and the investment is expected to be around Rs 2,000 crore. In Diamond Harbour the draft availability will be around 9 metre and it will become a main hub for Haldia Dock and Kolkata Dock container terminals.
What about the controversies surrounding Sagar port, which would be created through land reclamation? And the laying of foundation stone even before the feasibility report is out?
RITES along with WAPCOS and Central Water and Power Research Station, Pune, are conducting the feasibility study for the port. They were supposed to submit it with in November and now extended it for a month.
Our idea was to increase the depth of Haldia channel by dumping the dredge material on shore and there by developing some area in Sagar. I believe some people are trying to sabotage the project. We have not laid the foundation stone for Sagar port, but for railway line connecting it with Diamond Harbour Railways are doing the survey work.
If feasibility report is not ready, how it will be viable for railways to start the project?
RITES have completed the feasibility study for rail connectivity portion already and submitted a report. When the Sagar feasibility report is out, then only they will start.. We will discuss with railways on how to go-ahead with the project.
A Sagar port review committee under the chairmanship of shipping secretary has been set up and it has conducted three meetings till now.