Kandla Port Trust

Hi,

It is almost 4 months since I have communicated to you through this portal. In my last message, I outlined various initiatives that we had taken to improve the Port Facilities. Port's performance and Customer Satisfaction.

While I would like to share my Port's Results for the financial year 2004-05, I would also like to update you on the actual progress made on the initiatives that we had embarked upon.

This year 2004-05 is a 3rd consecutive year where KPT crossed 40 million marks in throughput and we had handled 41.55 million tons, a slight increase over the last year. This was, despite of the fact that there was a short-fall of 2.8 million tons in Crude Oil at Vadinar due to extended shutdown of two refineries of IOC and also a down-fall of 2.2 million tons in Food grains, owing to change in the Government policies, in addition to minor short falls in other commodities too. However, we could make up such huge shortfalls in other commodities, with the excellent patronage of the Trade. My thanks to the entire EXIM community who have been supporting unstintingly all the time. We have improved in all other physical efficiency parameters also.

As regards the expansion of Port facilities and projects are concerned, I am happy to share that our dream project of full-fledged Container Terminal, which is long awaited, is becoming a reality. The Board of Trustees have approved to award the license to M/s ABG Heavy Industries in association with Voltri Terminal at Genov of Italy, who have quoted the highest revenue share of 48.997%, subject to the sanction of the government. In addition, while the construction of 12th Cargo Berth is progressing on schedule, the Board had also sanctioned construction of 2 more general cargo berths, totaling 440 Mts. of the berth length with KPT funds. Simultaneously, we are also throwing open the construction of 15th to 18th berth to private participation under Public-Private Partnership Model.

Tenders for dredging for deepening and maintenance of the channel are under finalization, with the document approved by the Board. We hope to finalize the Rs. 100 crore contract by the end of June 2005, which will enable us to provide the more draughts in the channel and at berths than the present 11.5 Mts.

We are embarking to setup the world class Bunkering Terminal and Ship Repair & Building Yard under Private Participation for which the Board has already given in-principle clearance. Expressions of Interest for both the projects are under way.

Tenders for allotment of land for dry cargo warehouses have been finalized and tenders for liquid cargo tank farms are being finalized soon. With these two tendering process, the capacity of storage for both liquid and dry cargo at port will substantially increase since KPT has also been augmenting its open and closed storage facility within the Custom Bound Area to meet the ever increasing needs of the Trade.

We are in the process of developing a Deep Draft Satellite Port at Tuna/Tekra within the Kandla Port Trust with an investment of Rs. 230 crores, for handling Panamax and New Panamax Vessels, for which the Board has already cleared the proposal in-principle. Road and Rail Connectivity to the new proposed port has also been envisaged.

The Board has cleared investment Proposals for additional 4-lane road connectivity and augmentation of Broad Gauge Rail Connectivity. Strengthening of internal road and rail network has also been taken up parallel.

We had conducted a Trade Meet with All India Grain Exporters Association recently at New Delhi and it drew an excellent response in terms of trade interaction. My Special Thanks to the Association and Mr. D.P.Singh, in particular.

I had an opportunity to participate in the Annual General Assembly of INA-PIANC 2005 (International Navigation Association – Permanent International Association Of Navigational Congress) at Charleston, South Carolina, USA from 9th to 12th May 2005 where I had good exposure to international activities in Port Planning and Management.

With all these, I am sure, we will be able to serve the EXIM Trade much more effectively and meet their expectations. Any suggestions for improvement for serving you better are welcome.

Thanking You,

Yours truly,

(A. JANARDHANA RAO).