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By Group 7Atul SonkhlaNaveen TandonRahul GautamKolkata Port TrustLocation and FeaturesFirst major port in India, operational since 1870 Situated 232 km from Sand head, thus making this distance one of the longest pilot age in IndiaBerths are located at two places: Kolkata Dock System 232 Km upstream from sand headHaldia Dock System 28 m upstream from sand headKDS handles majorly containers and break bulk cargo and has 34 berthHDC majorly handles bulk cargo material and has 15 berthKoPT has vast hinterland and has connection with inland through NH-6, NH-2 and NH-34

Kolkata Port Trust

3Performance(2001-02)- Cause and Factor Analysis FactorsCausesStagnant material HandingDelay in the ship passage due to unprecedented cuts and drafts made it less preferable option and only the needy used the service of portHigh Demurrage chargesAs the ship passage was delayed the entire cycle of loading and unloading was also effected Drop in total material handledKDS experienced a drop in cargo carriage specifically the eatable items due to decrease in demandUn equal distribution in traffic between KDS and HDCWhile 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 trafficDrop in the revenue and profitHowever the revenue increased during the decade (90-20), the net revenue dropped. The major causes being increase in the operational cost mainly dredging and employee cost.Supporting agent problemsInefficiency in the supporting agents such as carrying and forwarding agents, steamers and customsPerformance(2001-02)- Major Factors and ImplicationsDredging Expenses High dredging expense due to heavy siltation in Hooghly riverUntimely 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 flowThis resulted in irregular salary paymentThe domino effect arising from it has major repercussionsEmployee moral was reduced extremely and hence the productivity when downOther 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 , BiharHigher maintenance cost for railway lines was another concernPerformance(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 basisAllotment 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 portsFurther the move coincided with the governments decision of developing port with a public private partnership onlyCustomer oriented policiesCreation of groups for understanding the market and customer perspectivesRationalization of the tariffs based on through put time of the cargo Providing assistance for agency jobs such as forwarding, streaming and customsOperational transformationAllowing deep draft operation for cape size vesselsReopening of KPD-II and carrying out modernization in order to increase productivity Manpower transformation and changesReduction of manpower form 41000 to 14000Computerization of the documentation jobs thus avoiding the corruption on the part of babus and documentationImpacts of TransformationInitiatives led to increase in traffic from 30 mt in 2001-02 to 55 mt in 2006-07.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 2006-07Net 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 2001-02At KDS, Average output per ship increased from 2215 T in 2001-02 to 4490 T in 2006-07At HDC, Average output per ship increased from 6207 T in 2001-02 to 8770 T in 2006-07There was an increase in railway earnings from 36.9 cr in 2001-02 to 139.2 cr in 2006-07.The earnings from estate rentals nearly doubled during the same period

CompetitionDharma 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 Port8th major port, opened in 1966.Serve a large hinterland of Orissa, Jharkhand, West Bengal, Chhattisgargh and BiharPort mainly deals with bulk Cargo.

Kulpi PortWeather port facilitiesEnvironment-friendly ship breaking yardIndustrial park

Issues in 2006-07 High operating expenditure amongst all ports in 2006-07 Delays from Central governemnt in reimbursement of Dredging expensesNumber of employees retiring by 2016, about 3714 at KDS and 2254 employees at HDC would be retiringHuge burden of Payment of pension

Constraints at HDCBerthing congestionsLock gate restrictionsRoad connectivityInadequate equipments

Constraints at KDSTug shortageLack of adequate equipments like MHCs, RMGC, trailersAbsence of one window clearance for permissions

KDSAcquire modern tugs to reduce berthing/un-berthing timeAcquire more MHCs, RMGCs as they are in shortageSingle window clearance Dedicated road connectivity for KDS to second Hooghly Bridge

HDCContainer ships to have priority to avoid delaysDeployment of additional tugs at portsCreation of second lock gateDedicated one river side jetty for container operationRecommendationsKoPTSet up Diamond Harbour port with PPP model on prioritySet up of Pension fund on priorityDevelop 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

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