Faced with loss of business, Kolkata Port Trust urges better transparency

Perceives threat from upcoming ports in Tajpur in West Bengal and Subrnarekha in Odisha

Port Trust (KoPT), which operates the riverine ports at Kolkata and Haldia in West Bengal is working on improving transparency in its processes and instilling better labour disciple to maintain its cargo handling volume as it feels threatened from the upcoming ports in Tajpur in West Bengal and Subrnarekha in Odisha.

The port's chairman, M T Krishna Babu said that the upcoming Tajpur port, with a depth more than 12 metres and the deep draft Subranarekha port, both armed with modern cargo handling systems, will be able to pull in ships with higher tonnage which will mean loss of cargo handling for the KoPT operated ports.

"These can prove to be a bigger threat to the Kolkata and Haldia ports than the Paradip port", he said.

As per Babu, in case the Tajpur port comes up, the 147-year old Kolkata port might stand a chance to lose part of its non-captive cargo. However, no estimates could be given for the Subrnarekha port.

Out of the 7,71,676 TEUs (twenty-foot equivalent unit used to measure container units) KoPT handled in 2016, 40 per cent were captive in nature.

The operational Dhamra port in Odisha is also challenging its cargo volumes as Babu is predicting a 10-15 per cent impact on cargo volumes at Haldia on account of this new port.

To take stock of the new threat, Babu is strengthening the ports operational transparency which, he hopes will make the cargo handling system more efficient and instil greater confidence amongst its customers.

"We need to modernise the entire system at the port", he said.

In the coming 6-9 months, KoPT will have an ERP system which will help it better manage the business and automate many back office functions related to technology, services and human resources. Also, it has rolled out a tender to put in place Radio-Frequency Identification (RFID) systems. An RFID tag will be attached to the cargo which will specify monetary and other quantitative and qualitative details which the ports can read and capture information using radio signals.

The port authorities are also digitising and streamlining the monetary processes involved in cargo handling right from arriving at the port till despatch which it hopes will bring in more transparency and reduce cost. It is estimated that the effective cost for cargo handling in Kolkata and Haldia is 25-40 per cent higher when compared to the Vizag or Chennai ports due to multiple layers of agent intervention.

"Transparency is the major issue in KoPT. Once this is addressed, the threat from Dhamra, Subarnarekha and Tajpur can be addressed", Babu said.

From this month-end, 80 per cent of all transactions, at the dock level are poised to become digital and once RFID is implemented, the entire monetary process, which involves several layers of agents, will become cashless.

Besides, the KoPT management is pursuing the trade unions to improve their productivity to compete with other ports, which in effect will increase its topline.

"I have told them (trade unions) not to think that their pension is safe", the port's top official said.

Till the end of the last fiscal year, KoPT's pension fund has a Rs. 2,900 crore deficit. As per officials, while it needs to have Rs. 4,600 crore in the fund to meet the pension payouts, KoPT has only Rs. 1,700 crore.

Apart from the call for better transparency and more work efficiency in face of growing competition, KoPT has also asked the Centre to sanction Rs. 3,300 crore so that it can proceed with its Nayachar plan which again will help it maintain its cargo handling volumes.

The Nayachar channel, which can have a nine metre depth will be able to handle vessels with higher cargo capacity to the tune of 35,000 tonne and thus increase KoPT's cargo handling volume potential. Larger Ships can moor at this channel to unload their cargo to smaller vessels which will carry the cargo to Kolkata or Haldia ports for further unloading and despatch.