Recent developments at Haldia dock, one of the two dock systems of the Kolkata Port Trust (KoPT), have hogged the headlines. Normal cargo handling operation in two of the berths, 2 and 8, has remained suspended from September 22. These are the best-performing berths of the dock with the average daily output being more than 20,000 tonnes each.

Also, the two berths are operated by Haldia Bulk Terminal Pvt Ltd (HBT), a special purpose vehicle floated jointly by France’s LDA and India’s ABG Group. As early as 2009, KoPT had entered into an agreement with HBT, empowering it to run the berths on certain terms. Accepting the terms, HBT invested around Rs 150 crore on acquisition of modern handling equipment, such as six mobile harbour cranes, 50 dumpers , 26 payloaders and other equipment, and creating certain facilities before starting operation in September 2010.

Going gets tough

For some months now, HBT has been finding it difficult to function. The rates — Rs 81 per tonne of cargo handled in berth 2 and Rs 69 in berth 8 — are proving unremunerative. Also, the traffic volume is dwindling.

The low rate itself would not have been a huge problem had there been adequate cargo inducement. “When we signed the contract, Haldia dock was handling around 50 million tonnes (MT) annually. It has dropped to around 30 MT or so since then,” says a spokesman for ABG Group, adding, “There has been a drop in traffic in all major ports but it has been much sharper at Haldia.” The average monthly traffic throughput in the first half of this year, too, has been lower than last year. The spokesperson said that the ABG Group charges only Rs 30 per tonne for operation of a mobile harbour crane at Visakhapatnam port compared with Rs 49 at Haldia, but faces no problem at Visakhapatnam due to good cargo support.

Realising the problem, KoPT decided to allocate more cargo to HBT and an arrangement was firmed up in September, allowing deployment of HBT’s surplus equipment in other berths, enabling the firm to handle more cargo.

Job loss fears

However, the decision evoked sharp response from a section of dock workers, who feared loss of jobs. Since, the size of the cake is small, any allocation of the larger share of it to some berths will entail loss of traffic in other berths. It was feared that private contractors engaged in shore handling operation in these berths might go for retrenchment. In fact, contractors did go to court against the decision, though without much success. There was an agitation leading to alleged manhandling of HBT officials, resulting in operations coming to a halt. HBT reacted to it by retrenching 275 workers. “Our officials and staff have been physically assaulted by those opposed to HBT getting larger share of the cargo,” the spokesman says. “We want to first ensure safety and security of our staff.”

The issue at stake is the absorption of 275 retrenched workers but HBT appears to bein no mood to take them back. “At the current volume of traffic, we do not need them,” the spokesperson says, pointing out that at no stage was there any need for these workers who, it is complained, have been thrust upon HBT due to political and others reasons.

In 2011-12, HBT handled 5.5 MT, (or a little more than 40 per cent of the total dry bulk traffic at the dock), which, it is emphasised, must rise to 9 MT, annually. Only then, would the question of absorption of the retrenched workers be considered. But can an industrialist in West Bengal get away with downsizing? Why not? asks the spokesman.

Numerous problems

The KoPT authorities try to put up a brave front despite difficult situation. It is argued that the normal operation is hit in only two of the 14 berths. Second, authorities want HBT to continue as the port’s earning from these two berths is substantial — around Rs 150 per tonne — and, therefore, moved to court to prevail upon HBT to resume work immediately. But any unilateral hike in current rates to benefit HBT is not possible. TAMP will not allow it, as it is there is a provision for five per cent escalation every two years, in addition to compensation for fuel price hike. Therefore, attempts are being made to ensure more cargo for the HBT. Next, two years have passed and most equipment deployed by HBT are due for repair and overhauling — a costly proposition.

Finally, the law and order situation. “The contingents of CISF are there to protect the port properties, not to prevent law and order problems, which have to be handled by the local administration,” add port sources.

It may be recalled that earlier also HBT had faced problems at Haldia. For nearly six months, the handling equipment for the berths were not allowed to enter the dock by a section of workers. Only a court order directing administration to provide police escort saved the situation. Last week, HBT again appealed to Calcutta High Court, seeking police protection and security for its staff and officers. The High Court has ordered the local administration to ensure maintenance of law and order, particularly within 100 metres of the dock, and security for HBT’s staff.

However, the questions which haunt many are — can it be a long-term solution? Can operation be sustained with police protection? “Till yesterday, I was not very sure but today I’m very hopeful, following the court order,” observes the spokesman.

> santanu.sanyal@thehindu.co.in

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