KOLKATA PORT

TRUST
By Group 7
Atul Sonkhla
Naveen Tandon
Rahul Gautam

Kolkata Port Trust

Location and Features

First major port in India, operational since 1870
Situated 232 km from Sand head, thus making this distance
one of the longest pilot age in India
Berths are located at two places:

Kolkata Dock System 232 Km upstream from sand head

Haldia Dock System 28 m upstream from sand head

KDS handles majorly containers and break bulk cargo and has
34 berth
HDC majorly handles bulk cargo material and has 15 berth
KoPT has vast hinterland and has connection with inland
through NH-6, NH-2 and NH-34

Performance(2001-02)- Cause and Factor

Analysis
Factors

Causes

Stagnant
material
Handing

Delay in the ship passage due to unprecedented cuts

and drafts made it less preferable option and only the
needy used the service of port

High
Demurrage
charges

As the ship passage was delayed the entire cycle of

loading and unloading was also effected

Drop in total
material
handled

KDS experienced a drop in cargo carriage specifically

the eatable items due to decrease in demand

Un equal
distribution in
traffic
between KDS
and HDC

While the demand for containerised item decreased ,

the demand in commercial item such as coking coal,
iron ore and general cargo. The exclusivity in the
handling features of port lead to congestion at one port
and also uneven distribution of traffic

Drop in the
revenue and
profit

However the revenue increased during the decade (9020), the net revenue dropped. The major causes being
increase in the operational cost mainly dredging and

Performance(2001-02)- Major Factors and

Implications
Dredging
Expenses
High dredging expense due to heavy siltation in Hooghly river
Untimely and irregular reimbursement from the government
High dredging expense and delay in reimbursement of the expense leading
to reduction in port charges and hence resulted in the reduced fare and
revenue collection

Employee
Issues
High dredging expense and non timely reimbursement from the

government led to irregular cash flow

This resulted in irregular salary payment
The domino effect arising from it has major repercussions
Employee moral was reduced extremely and hence the productivity when
down
Other problems such as delay in pension payment of the retired employee
due to lack of corpus cash was multiplying the distress situation

Discontinuation of KPD II, poor road connectivity and higher

maintenance
Poor connectivity has lead to decline of exports from farther hinterland
areas such as UP , Bihar
Higher maintenance cost for railway lines was another concern

Performance(2001-02)- Steps towards

Transformation
Bringing In PPP (Public Private Partnership)
Enhancement of capacity utilization at the ports
Leasing out of berth 12 at HDC to Tata Martrade International
Logistic Limited on build operate and transfer basis
Allotment of berth 4A under similar contract to International
Seaports ltd.
This resulted in high return in terms of capital invested for the
development of the ports
Further the move coincided with the governments decision of
developing port with a public private partnership only
Customer oriented policies
Creation of groups for understanding the market and customer
perspectives
Rationalization of the tariffs based on through put time of the cargo
Providing assistance for agency jobs such as forwarding, streaming
and customs
Operational transformation
Allowing deep draft operation for cape size vessels
Reopening of KPD-II and carrying out modernization in order to
increase productivity
Manpower transformation and changes

Impacts of Transformation
Initiatives led to increase in traffic from 30 mt in 2001-02 to 55 mt in 200607.
In 2006-07, KoPT contributed 13% of total Indian major port cargo.
2nd rank after Viskhapatnam port in terms of total port cargo.
80% increase in container traffic.
3204 ships handled at KoPT in 2006-07
Net surplus increased from -7.53 cr in 2000-01 to 465 cr in 2006-07.
Average turnaround Time of Ships was reduced to 3.95 days in 2006-07
from 4.21 days in 2001-02
At KDS, Average output per ship increased from 2215 T in 2001-02 to 4490
T in 2006-07
At HDC, Average output per ship increased from 6207 T in 2001-02 to 8770
T in 2006-07
There was an increase in railway earnings from 36.9 cr in 2001-02 to 139.2
cr in 2006-07.

Competition
Dharma Port
Concession from Orissa Government to build on BOT for a peroid of
34 years.
Planned to be deepest ports of India with a draft of 18m.
Can accommodate vessels upto 180000 DWT.
13 berths capable of handling 83mt per annum.

Paradip Port
8th major port, opened in 1966.
Serve a large hinterland of Orissa, Jharkhand, West Bengal,
Chhattisgargh and Bihar
Port mainly deals with bulk Cargo.

Kulpi Port
Weather port facilities
Environment-friendly ship breaking yard
Industrial park

Issues in 2006-07

High operating expenditure amongst all ports in 2006-07

Delays from Central governemnt in reimbursement of Dredging

expenses

Number of employees retiring by 2016, about 3714 at KDS and 2254

employees at HDC

would be retiring

Huge burden of Payment of pension

Constraints at HDC

Berthing congestions
Lock gate restrictions
Road connectivity
Inadequate equipments

Constraints at KDS
Tug shortage
Lack of adequate equipments like MHCs, RMGC, trailers
Absence of one window clearance for permissions

Recommendations
KDS
Acquire modern tugs to reduce berthing/un-berthing time
Acquire more MHCs, RMGCs as they are in shortage
Single window clearance
Dedicated road connectivity for KDS to second Hooghly
Bridge
HDC
Container ships to have priority to avoid delays
Deployment of additional tugs at ports
Creation of second lock gate
Dedicated one river side jetty for container operation

Recommendations
KoPT
Set up Diamond Harbour port with PPP model on
priority
Set up of Pension fund on priority
Develop inland water transport through National
waterways with the help of IWTI (Inland Waterways
Authority of India)
Reducing draft limitation to enable larger draft vessels
to visit Haldia and Kolkata port