Kandla Port becomes 1st Major Port to handle 105.44 MMT Cargo during FY 2016-17

Posted by Daily Shipping Times on 12-04-2017        Tweet

...Retains its Prime Position for 10th time in a row l Celebrates 54th National Maritime Day

GANDHIDHAM : Kandla Port Trust recently organized an Annual Press Conference on the occasion of the 54th National Maritime Day on 5th April 2017 at Hotel Amber Sarovar Portico, Gandhidham.

Capt. T. Srinivas Dy. Conservator, Kandla Port gave the welcome address while Shri Alok Singh, IRS Deputy Chairman, Kandla Port outlined the importance of National Maritime day.  

Shri Ravi Parmar, IAS, Chairman, Kandla Port congratulated all the employees, stakeholders and valuable customers for creating historic milestone of handling 105 MMT cargo during the last fiscal at Kandla Port.

He also presented the business highlights of Kandla Port during FY 2017 and briefly dwelled on the ongoing and future projects.  

The Major achievements of the Port for FY 2016-17 are: -

A) Traffic :

1) Highest ever cargo handling

The Kandla Port Trust created a new record by handling 105.44 million metric tonnes of cargo during the FY 2016-17, showing a growth of 5.39%. KPT is the only Major Port to handle more than 100 MMT Cargo throughput and is now the number 1 Major Port of the Country (in terms of cargo handling) for the 10th consecutive year.

On 27.10.2016, the Port handled a record quantity of 5,83,186 MT of total traffic at Kandla Port, surpassing the previous best of 5,52,907 MT handled on 31.05.2010. A single day record quantity of 189598 MT of dry cargo was handled at Kandla Port on 31.03.2017, surpassing the previous best of 1,75,506 MT handled on 10.05.2015. A record quantity of 15947 MT of Chemicals was dispatched ex MT MERCURY at Kandla on 31.03.2017, surpassing the previous record of 13000 MT handled on 23.05.1996 ex-MT STOLT WESTLAND.

2)            Efficiency parameters regarding Performance of the Port for FY 2016-17 :

Efficiency Parameters of Kandla Port during the year 2016-17 vis-à-vis 2015-16

 S No.                    2015-16 2016-17 Improvement

  1            Avg. Pre-Berthing Detention

                (in days)                                              

                Port A/c               0.15        0.09       

                Non-Port A/c     1.85        1.85       

                Total                      2              1.94        3%

  2            Average Turn Round Time

                (in days)                                              

                Port A/c               2.19        2.06

                Non-Port A/c     2.47        2.34       

                Total      4.66        4.4          6%

  3            Average Out per ship berthday 16655    18464    11%

                (in Mts)

  4            Number of vessels handled        2513       2568       2%

b) Finance :

The provisional financial performance for 2016-17 vis-à-vis 2015-16 is appended hereunder: -

Actual                   Head of Account                              Provisional         

2015-16                                                                2016-17

100.05                   Traffic in Million Tonnes                                105.44  

982.14                   Operating Income (in Cr.)             1291.90

621.58                   Operating Expenditure (in Cr.)   669.22  

360.56                   Operating Surplus (in Cr.)             622.68  

63.29%                  Operating Ratio                                51.80% 

62.13                     Cost Per Tonne (rs.)                        63.47    

207.26                   F&m Income (in Cr.)                       205.52  

145.70                   F&m Expenditure (in Cr.)              177.18  

422.12                   Net Surplus Before Tax (in Cr.)   651.03

c) Projects (Civil, Mechanical and Marine) : -

i               Award of work for construction of Cargo Jetty Nos.14 & 16:-

                For handling dry cargo, the Kandla Port Trust is undertaking to construct two Jetties – namely Cargo Jetty No.14 and Cargo Jetty No.16. To be constructed at a cost of about 530 crores, these two jetties will add capacity of 4.5 Million Tonnes per berth i.e., a total of 9.00 Million Tonnes. The orders for both the works have been awarded on 18.03.2017 and construction work will start shortly.

ii              Award of work for construction of ROB cum Interchange: -

                The Kandla Port is undertaking to build a Rail Over Bridge / Interchange at Kutch Salt Junction. It is being built at LC236 to provide seamless flow of traffic over junction of three railway lines and five roads. The order for construction of ROB has been awarded on 18.03.2017 and the construction work shall commence soon.                            

iii             Award of work for Mechanization of fertilizer bagging and wagon loading: -

                The Kandla Port Trust has successfully awarded the work of Mechanised bagging and wagon loading of fertilizers. The Project has been designed to handle 1.4 MMTPA of fertilizer cargo.

iv             Declaration of Station code for Railway siding inside the Port, enabling running of train on through distant basis:-

                The Port has taken significant steps to provide last mile connectivity to port-users.

In culmination of KPT’s long efforts, Western Railway on 24.03.2017 notified Kandla Port Dock Rail Terminal at Kandla Port for handling all types of cargo.  With this, now freight will be charged on through distance basis upto the farthest point inside the Port. With the opening of Kandla Port Dock Rail Terminal, the export import trade will be benefitted to a great extent, as the cost of handling will be reduced considerably on account of non-levy of Wagon Placement charges by Railways, which works out to between Rs.32/- to Rs.46/- per MT depending upon the cargo.

                This is one more step towards lowering of transaction cost for the export import trade and facilitating “Ease of Doing Business” to the trade.

v.            Successful auction of land for salt production: -

                The Kandla Port has carried out successful auction of salt lands in a transparent manner. The long pending e-tender-cum-e-auction for allotment of more than 10,000 acres of salt land in Kandla Port area has been successfully completed.  During the e-auction, a total of 10 plots were e-auctioned at a Reserve Price of Rs.20,344.92 per acre per annum. However, due to fierce competition, the KPT would now get revenue of Rs.260.02 crores in the next 10 years. Similarly, the revenue from the remaining seven plots for the next 30 years will be more than 368 crores (approx.).

vi             Successful auction of land for Tank Farms: -

                The KPT has been successful in allotting total 16 Nos. of plots through e-auction process for the purpose of liquid storage tanks on 30 years’ lease period.  The total Storage capacity of these tanks to be installed is 14.50 lakh KL (approx.).  The KPT will earn a revenue of Rs.1512.51 crores (approx.) towards lease rental charges in the next 30 years from these 16 Nos. of plots. The successful e-auction of salt land and tank farms at Kandla will not only provide direct and indirect employment to about 9000 local people, but it will also give additional cargo and revenue to Kandla Port.

vii            Wind Energy project for 6 MW: -

                In keeping with the Government’s drive to promote green energy, the Kandla Port has   taken steps for production of wind based power. The Project for 6 MW Wind Power has already been completed. The project of setting up of a 6 MW wind power facility was awarded to M/s. Inox Wind Ltd on 15.04.2016. The turbines have been set up in village: Sukhpur, Dist: Amreli, Gujarat. Regulatory approval from GEDA has been obtained. Transmission and Wheeling Agreement with GETCO has also been signed.

The production will start very shortly. It’s a green energy project & will provide clean and renewable Energy.

The generation capacity of the wind farm will be around 1.32 cr. units per year. After commissioning of 6 MW of wind power project, the KPT is likely to save around Rs. 7.50 Cr. per annum in the energy consumption bill.

viii           Successful commissioning and start of commercial operations of Container Terminal at Kandla Port: -

                Due to persistent effort, the Port has been able to successfully implement and restart container operations on PPP basis. Concession Agreement was signed with Kandla International Container Terminal on 29.02.2016 and the date of award of concession was 12.9.2016. Commercial operation of Phase 1 of the Project commenced on 28.01.2017. Phase-II is scheduled to operationalized by Sep’17. On completion, the terminal will have the capacity to handle 6 lakh TEUs annually. This project has revived Container handling operations at Kandla Port.

ix             Increase in productivity of Cargo Handling at Kandla through Policy Interventions: -

                In keeping with Government’s policy of achieving excellence in Port operations, an exercise was carried out to benchmark the Port Operations with best practices in leading Ports. The Kandla Port took various measures in consultation with the Port- Users, so as to reduce the unproductive time like pre-commencement delays, loss in shift changes and also upward revision of productivity, keeping in view the infrastructure and capacity available. This resulted in improvement in operational efficiency such as productivity, which in turn increased the cargo throughput and reduction in pre-berthing delay and faster turn-around time of the vessels calling at Kandla. The average per hour output for edible and chemical tankers increased to 363 MT from 247 MT per hour i.e., improved by 47%. Similarly, the productivity of dry cargo increased to 10,126 MT per day during current financial year from 8051 MT during 2014-15, thereby, achieving an increase of 26%.  The average pre-berthing detention and turn-around time was reduced by 26% and 18% respectively during the current year, as compared to 2014-15.

x              Improvement in Navigational facilities: -

                The Kandla Port Trust had conducted an audit of navigational channel with a view to optimally utilize the available depth in the channel. As a result, for vessels (other than container vessels) maximum LOA of 260 mtrs. at a draught of 12 mtrs. are now permitted in place of 255 mtrs. earlier.  For container ships, LOA of 270 mtrs. at a draught of 12.5 mtrs. is being permitted. Further, for night navigation, maximum permissible LOA is increased from 225 mtrs. to 230 mtrs. and draught has been increased from 11.5 mtrs. to 11.75 mtrs. Under the Project “Unnati”, Pilot Personal Unit (PPU) has been procured and put to use for Safe Navigation in Kandla.

Xi            Start of Ro-Ro services: -

                The Kandla Port Trust has started a new category of cargo during the FY 2016-17 by handling vehicles through Ro-Ro services. The service has commenced from September 2016 and the voyages are from Chennai to Kandla via Cochin & back. Total 7 voyages have been completed till the end of the current year.  More than 11000 cars & trucks have been discharged at Kandla and 2390 vehicles have been loaded.  The major users for inbound movement are Ford-Chennai, Toyota, Hyundai and for out-bound movement, Ford-Sanand, TCI-Sanand, Tata, Honda are using the facility. This is a major step in the direction of coastal movement of cargo.

xii            Development of Smart Industrial Port City (SIPC): -

                The Kandla Port Trust is developing greenfield Smart Industrial Port City at two locations. At the first location, spread over 585 acres, residential, commercial and institutional development will be carried out. At the second location, spread over 850 acres, industrial development will be carried out. For both the locations, applications for obtaining environment clearance have been made and studies for environment impact assessment are underway. Detailed engineering designs for various infrastructure works are also being carried out and the work on ground is likely to start in June, 2017. The total expenditure on these two projects is likely to be more than Rs. 1000 crores and will greatly enhance industrial and commercial activity in Kutch region and will also bring additional cargo to the Port.

d             Administration: -

                1.            The Compassionate Appointment Policy finalised and implemented successfully.

                2.            The new Merit Scholarship scheme finalised and ready for implementation.