Kolkata port slashes rate for coastal cargo

Kolkata Port Trust (KoPT) is going to offer special rates for bulk and container traffic to boost coastal movement. The new rates will be released later this month.

The move is aimed at attracting a part of road and rail cargo to the port through competitive rates.

The port has recently slashed charges for container cargo for Andaman-bound vessels and pegged them below Chennai, the dominant player for Andaman trade.

Anup Chanda, chairman of KoPT said the discounted rate would now be made available for all other coastal movement.

"The new rates for Andaman vessel have been appreciated by the trade. We expect new cargo could be generated if the same offer is extended to all coastal movement," Chanda said.

The port will offer all inclusive container handling charge of Rs 2,200 as compared to Rs 3,300 earlier. In contrast, the Chennai rate is Rs 2,450 per box.

The distance to Andaman from Kolkata and Chennai being the same, KoPT was hoping to corner at least 50 per cent of total Andaman container traffic.

In a matching gesture, the Calcutta Dock Labour Board (CDLB) has also brought down container handling charge from Rs 1,150 to only Rs 150.

"Earlier smaller ships, which did not come under CDLB's purview, were going to Andamans. With the cheaper rates, bigger ships are expected to call on the dock. Thus it will provide additional revenues for the Board," Chanda pointed out.

The volume of coastal cargo handled by Kolkata port was negligible. The new rates should encourage trade to explore this route.

"We will be successful only if costs are less than rail or road. While there is good possibility of getting cargo from east Indian ports, traffic from west coast is also expected," he said.

Kolkata port had brought down charges for bulk cargo to Andaman by 50 per cent in early-2003. The Andaman-Kolkata traffic is pegged at 65,000 tonne compared to 100,000 tonne in the Andaman-Chennai route.

In a parallel development, Container Corporation has moved reefer containers from north India to Andaman through Kolkata port.

Kolkata port was expecting more such cargo as this mode ensured quality of perishable commodities in the Andaman and Nicobar Islands.