The Hindu Business Line : Kakinada Seaports to take up infrastructure project

Major players operating in the Krishna-Godavari basin have shifted their port operations to Kakinada from Visakhapatnam as it is the nearest port. For the benefit of these companies, Kakinada Seaports Ltd is taking up a Rs 80-crore joint infrastructure project.

BETTER days are ahead for the Kakinada Seaports Ltd — operating the deepwater port at Kakinada — with the intensification of oil and gas exploration in the Krishna-Godavari basin.

All the major players operating in the basin, such as ONGC, Cairns Energy, Reliance, Gujarat State Petroleum Corporation (GSPC) and Transocean, have shifted their port operations to Kakinada from Visakhapatnam as it is the nearest port.

Kakinada Seaports Ltd on its part is taking up a joint infrastructure project at Rs 80 crore or so for the benefit of these companies.

Dr M. Srinivas, the Director-in-Charge of Kakinada Seaports, said that two jetties would be constructed exclusively for the purpose.

"There will be fuel and water supply by pipelines and we are procuring high capacity cranes. We are planning to complete it in 12-15 months. It will be of great help to these oil and gas majors. The back-up area will also be developed suitably taking their needs into account. Four vessels can be berthed at the jetties and it is our endeavour to offer them all facilities," he said. He said Kakinada, being the nearest port, offered the companies great logistical and operational advantages. "Previously, these facilities were not available here and they had to go to Vizag of necessity. Now we are ready to offer them the same facilities," he said.

Dr Srinivas said each rig would require at least 80-100 vessel calls per annum and "on the whole 600-800 calls per annum. The jetties will be busy.''

On the diversion of transhipment cargo from Visakhapatnam to Kakinada during the past two years on a substantial scale, he said the very large crude carriers (VLCCs) could be handled at Kakinada for the better part of the year.

"There is nothing unusual about it. Our rates are competitive and the companies are finding that the end-to-end logistical costs are comparatively lesser here than in Vizag. That is why they are choosing Kakinada. Previously, they had no choice but to frequent Vizag," he explained.

Referring to container cargo, he said the rail line connecting the port would be commissioned by the end of July or August and Kakinada Seaports had identified a strategic partner to handle container cargo.

"The negotiations are at an advanced stage and we hope to clinch it in one or two months. We will then turn our attention to container cargo," he said.

On the controversial question of payment of the minimum guaranteed amount (MGA) to the State government, Dr Srinivas said there were many misconceptions in the public about the issue.

"In fact, in accordance with the revised payment schedule, we have paid all the amounts and as on March 31, 2004 there is no outstanding amount," he asserted. However, he did not specify how much had been paid to the State Government.

He said the KSL opened a trade facilitation centre in Vizag and that two more centres would be set up later in Mumbai and New Delhi.