For the first time in six years, Kolkata Port Trust (KoPT) is set to register a fall in cargo traffic over the previous fiscal as iron ore trade in the region is hit by the economic meltdown.
KoPT is likely to end the financial year with cargo volumes touching around 55 million tons(mt), as against 57.32 mt last fiscal, according to sources in the port.
It had handled a record volume of cargo in 2007-08 in its 137 years history, up 4.14 per cent from previous fiscal as it ranked third amongst India's major ports. The Kolkata Dock System (KDS) handled a traffic of 13.74 mt, up nine per cent over 2006-2007, while at the Haldia Dock Complex (HDC), cargo traffic increased by 2.67 per cent to 43.58 mt.
During the last six-years, from 2001-2002 to 2007-2008, KoPT increased its cargo volume by 26.926 mt (88.6 per cent), against 80.5 per cent growth of traffic registered by all Indian major ports during the same period. Compounded annual growth rate (CAGR) of total traffic at Kolkata Port during the last six years was 11.2 per cent against the all-India growth of 10.3 per cent.
However, during the April to January period, iron ore traffic was down by around 1.5 mt. This is partly due to a fall in iron ore trade in the region after the prices peaked in June-July last year. A K Chanda, chairman, KoPT admitted that there was virtually no iron ore traffic for nearly four months during the year. As prices started falling in the world market, there has been a spurt in activity from the region resulting in congestion at the port's entry point, Sandheads. Of the 68 ships waiting at Sandheads now, nearly 44 are iron ore ships.
The shipping ministry had set a target of 60 mt cargo for the fiscal, including a 48 mt target for HDC, and 12.28 mt target for KDS. KoPT had been able to achieve 48.55 mt of cargo handling at both the dock systems and expected to end the year in March at 55 mt. As for containers, the port would fall slightly short of the ministry target, of 7.7 mt. It had already achieved 4.8 mt at KDS and around 2.02 mt at HDC. While the HDC target of 2.05 mt would be easily met, KDS could fall short of target this year, informed sources in KoPT.
The port, however, has recorded a 1.5 per cent rise in terms of twenty equivalent units(TEU) in container traffic during October to January, and a 2.4 per cent rise in terms of tonnage at a time when major ports across the country registered a fall of 9.5 per cent in TEUs and 13.5 per cent in terms of tonnage during the same period.
The port's revenues are unlikely to show a decline primarily on the back of the rise in container traffic. While KoPT declined to give out revenue figures for the fiscal, it pointed out that there was no fall up to December. Chanda pointed out that the extent of drop in KoPT traffic so far had been 2.6 per cent compared with 7.5 per cent of the east coast ports, mainly, handling bulk items, as a whole.
The west coast ports, on the other hand, suffered a 0.5 per cent drop in traffic throughput cumulatively. "The fall was despite a 5-17 per cent traffic growth in Kandla, that did well mainly on the back of handling oil cargo,and Mormugao (mainly due to long-term iron ore contracts) ports. ", he added.
