The Hindu Business Line : `We geared ourselves to demands of a buoyant economy' — Mr M. L. Meena, Deputy Chairman, Haldia Dock Complex

In 2004-05, HDC handled 36.26 million tonnes (mt) out of the total traffic of 46.20 mt moved by the port as a whole. Kolkata Dock System (KDS), the other dock system of the port, handled 9.94 mt. The corresponding figures for 2003-04 were: HDC: 32.56 mt; KDS: 8.70 mt and total: 41.26 mt. The situation will not be very different in the current fiscal, if the present trend is any indication.

Mr Meena, a 1983 batch officer of the Indian Administrative Service and belonging to the West Bengal cadre, has been the Deputy Chairman of the HDC for nearly four years now. Four year ago, Haldia dock handled 23 mt and is now set to cross 41 mt.

In a recent interview with Business Line, Mr Meena discussed various issues facing HDC.

Excerpts from the interview:

The traffic growth of Haldia Dock, so far in the current fiscal, has been impressive...

We had set a target of 39 mt for 2005-06 compared with the actual throughput of 36.26 mt in 2004-05. We now hope to cross 41 mt by March 2006. Till now we have handled more than 28 mt.

How do you explain this growth?

Haldia Dock's traffic growth should be attributed entirely to the buoyancy of the economy. But I must also emphasise that the dock authorities were not caught napping when the economy was on the upswing. We geared ourselves by improving productivity, upgrading facilities and modifying policies to suit to the requirement of the trade.

Which of the items posted significant growth in throughput?

Crude (imports) and iron ore (exports). We have so far handled 8.41 mt of crude compared with 8.01 mt in the same period last year.

We have already touched the last year's iron ore throughput of 5.4 mt and will perhaps end this fiscal with a throughput of about seven mt.

But the crude traffic is set to disappear soon, with the commissioning of the Paradip-Haldia crude pipeline...

Yes. We will lose about nine mt of crude traffic as soon as the Paradip-Haldia crude pipeline is commissioned. It will hit us badly financially, because the per tonne earning from crude is much more than any other bulk item.

How are you going to cope with the situation... by targeting new cargoes to compensate the loss?

It is not possible to compensate the loss fully; at least not immediately. We will continue to get some quantities of crude — an estimated two mt of Rava crude annually — even after the commissioning of the Paradip-Haldia pipeline.

Reliance has promised to step up imports of petroleum products through Haldia and, accordingly, decided to expand its tankage capacity.

Indian Oil Corporation will undertake exports of petroleum products and has decided to use the third oil jetty for the purpose.

The jetty is now used mainly for handling crude imports. The imports of large quantities of naphtha and paraxylene for Haldia Petrochemicals and Mitsubishi Chemicals will continue. Besides, the prospects of a few other types of cargoes have brightened. One is thermal coal import. It was not there till last year.

This year we hope to handle close to one mt of thermal coal imports, mainly for the National Thermal Power Corporation and limited quantities for CESC, and the throughput is likely to double next year.

IFFCO's plant in Oman has started production and with it the import of urea through Haldia at the rate of 25,000 tonnes per month. We've so far handled about one lakh tonnes.

Coking coal imports for both Steel Authority of India Limited and Tata Steel too are rising. Last year we handled 3.7 mt and this year the figure may be around 4.5 mt. A foreign company has shown interest in importing limestone — an estimated two mt annually — to meet the growing demand of the steel sector.

Aren't you bullish about iron ore traffic?

Not really. True, the throughput of iron ore so far this year has been very good but I'm not too sure if this trend will persist. First, the export demand is governed by the international market situation, which fluctuates. Second, is the linkage problem. So far, the Railways has met the increased demand for transportation but might find it difficult to stretch itself too far. Finally, a Committee of Secretaries appointed by the Union Government is examining the whole gamut of issues related to iron exports in view of the demand of the domestic steel producers for clamping restrictions on such exports.

What about coastal shipments of thermal coal for the Tamil Nadu Electricity Board?

I do not think coastal shipments of thermal coal for the TNEB will rise to any significant extent, if the trend in the past few years is any indication. The throughput will continue to be around three mt annually.

We've been hearing about a chemical park at Haldia for some time. At what stage is it now?

We, from the Kolkata port, first mooted the proposal for a mega chemical park at Haldia and it is being actively pursued by the West Bengal Government in collaboration with the Kolkata Port Trust.

We have identified land at Jellingham located further down the river and we will acquire about 2,500 acres and make it available to those keen to set up units there. Indian Oil Corporation has shown interest in setting up chemical projects there.

The KoPT is committed to the West Bengal Government to create necessary port facilities at Jellingham.

What is your biggest problem?

My biggest concern is the declining draft of the Hooghly river. The draft near the dock is not improving despite dredging. Four dredgers of Dredging Corporation of India are engaged in maintenance dredging round the clock.

More than Rs 200 crore is spent every year on this score. Sadly, without any tangible benefit. DCI should consider appointing foreign consultants to study the problem and suggest necessary measures.

Right now, we get a draft of 8-8.5 metres in the river. Give a draft of 11 metres, and Haldia alone will emerge as the country's largest cargo handling port.

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