Costs double for container terminal in Kolkata
By arunr at 14 July, 2008, 11:12 pm
STORY HIGHLIGHTS
- Estimated costs of the new proposed container terminal in Kolkata has doubled in the last year, to Rs. 1233 crore.
- The project will be completed in a single phase, with a handling capacity of 1.6 million containers.
- A private public partnership will used West Bengal lands, KoPT lands, and Central government lands to complete the project in one phase.
- India needs more port container terminals to access global markets.
Kolkota, West Bengal — The estimated costs of the new proposed container terminal in Kolkata has doubled in the last year.
The estimated construction cost of the proposed container terminal at Diamond Harbour dock on the river Hoogly, 40km downstream from Kolkata, has more than doubled from Rs. 500 crore to Rs 1233 crore. This will be the major sea port for Kolkata and West Bengal.
The Kolkata Port Trust (KoPT) is expected to float a request for qualification (RFQ) for the project next month. PVK Mohan chairs the committee for the new plan, for a terminal handle both dry bulk cargo and containers. Containers are important because half of global cargo comes in containers. They are also much more efficient and allow for faster loading and unloading, saving in labor costs and ship docking time costs.
The container terminal will operate under a private-public partnership on a build-operate-transfer basis, said Anup Chanda, chairman of KoPT.
KoPT would build three more container freight stations to supplement its existing two stations, which are under the control of the Central Warehousing Corporation and Balmer Lawrie.
Total capacity for container handling would be 1.6 million containers and was expected to hit 1.1 million units in the first year. The project will be built in one phase, and not two phases like in the older plan.
The new terminal would have four ship handling wharfs and two barge wharfs. About 120 acres will be required for the project.
Of this, around 57 acres will come from the West Bengal government and 40 acres from private owners. The rest will come from Defence lands and the director general of lighthouse and lightships.
Chairman Chanda said environmental clearance for the project was nearly given, so KoPT plans to appoint a consultant for preparing a project report this month. The project plan was before the ministry of commerce awaiting approval.
Diamond Harbour is in the proximity of the Bay of Bengal, so there is scope for development of ports and shipping activity. It is close to a special economic zone at Falta, one of the eight such zones of the Government of India.
As large ocean going ships with full load of goods cannot enter the river ports at Kolkata and Haldia, the need for a seaport in the area has been felt for a long time, especially as India connects to global manufacturing and agricultural supply chains. Also, KoPT is keen to have a rail-linkage between the Balmer Lawrie station and the Kolkata Dock System to overcome a trailer shortage which was pushing up costs for the businesses.
KoPT’s net income rose 15% yoy to Rs 530 crore in 2007-08, after obtaining a rate revision effective from March 2007. This brought down tariffs by 20%, and kept it return on capital at 16%, and so within reasonable boundaries.
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