The Hindu Business Line : Haldia dock spends Rs 100 cr on container traffic facilities

Kolkata June 18 An estimated Rs 100 crore is being spent on Haldia dock to create additional facilities for handling containers even as the dock authorities remain sceptic about the prospects of a big jump in container traffic in the near future.

The recent visit of the high-powered committee constituted by the Union Government to examine the scope of boosting container traffic through the dock too does not seem to have brought much cheers to those familiar with goings-on there.

scepticism

The scepticism is due to several reasons. First, and perhaps most important, it is sincerely felt that Haldia is a natural port for handling bulk cargoes, both liquid and dry types.

The belief is strengthened by the fact that the kind of industrial units that are located in and around Haldia as of now do not have much appetite for containerised traffic.

So the prospects of any big jump in containerised traffic to and from the dock do not appear to be very encouraging, at least in the foreseeable future. There are other reasons also.

Disadvantages

Haldia's container traffic has suffered also due to discriminatory policy of the Kolkata Port Trust. In 2003, the Kolkata Port Trust drastically reduced the container handling rates at the Kolkata Dock System (KDS), rendering Haldia costlier vis-à-vis KDS and forcing many global container operators to shift their operations from Haldia to KDS.

In one stroke, Haldia's container throughput slumped. The situation has improved since then in the sense that the container handling rates in both KDS and Haldia have been kept at par but Haldia continues suffer from some other disadvantages.

For example, while at KDS, everything is done by the port authorities, this is not so at Haldia where private operators supply and operate equipment and charge accordingly, rendering Haldia costlier than the KDS. Hopefully, with the introduction of the new package being considered by the dock authorities, the gap will be narrowed.

Congestion

The other major problems at Haldia is the problem of acute congestion and poor navigability of the river. The container ships are often required to wait for long.

There are some fundamental issues also. While the Union Government's bid to promote containerised traffic through KDS/Haldia is welcome, one wonders if the recommendation of the expert committee can really hope to boost container handling at any port.

Factors

The growth of traffic depends on various factors and not necessarily on the government fiat to create facilities. The perception of the trade about the total logistics cost is important. The physical proximity of east coast ports vis-à-vis west coast ports to various south east Asian destinations may not be the determining factor.

The number of services from the west coast ports is many times more than those from the east coast ports and the freight rates from the west coast therefore are far more competitive than those from the east coast ports.

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