KOLKATA: After signing a profit-sharing agreement with Cochin Shipyard Ltd (CSL) - India's largest shipbuilding and maintenance company - Kolkata Port Trust (KoPT) is set to revive its ship repairing facilities in two out of five idling dry docks which it abandoned in 2015.
Under the terms of the agreement, KoPT will be providing the necessary waterfront, dry dock, land and will be repairing part of associated infrastructure while CSL will repair and operationalize the idling machines needed for repairing ships and may also install renovated machinery pieces if needed. The profit from this venture will be shared in a 40:60 ratio between KoPT and CSL.
According to KoPT Chairman, Vinit Kumar, the project is expected to be completed in the next 3-4 years and upon completion, KoPT will be able to repair 16-18 ships every year which has the potential to generate revenues of Rs 500 million a year. Expecting container handling for Nepalese cargo to surge by around 3-4 per cent this year and bring in more transparency in container handling rates, KoPT has also set up a dedicated trade facilitation centre for the Himalayan neighbour.
"We have always been told (from the centre) to give the highest priority to Nepalese cargo and it continues to be so. However, lack of information and transparency in rates were affecting the trade with Nepal and thus we have come up with this initiative", Kumar said.