Kandla Port Trust

Dear Customer,

It has since been long that I have not communicated to you through this portal, although, different sections of the Media have been covering the various developments in your favourite Port of Kandla.

Till the end of September, 2005 i.e. end of Q2, we, with all your support, have been consistently doing reasonably well. Despite short-fall in Crude intake by the Refineries from Vadinar almost to the tune of 1 million tons, the overall performance of the Port shows an increase of around 2 million tons, with a growth rate of around 10%. At Kandla, we could show 30% growth, where all dry cargo and liquids other than Crude being handled.

We are able to show substantial improvement in our productivity parameters. In fact, we are perhaps the only port in Asia where the fastest loading of dry bulk cargo in conventional way takes place.

Development works for creation of world-class infrastructure, as apprised you in my previous messages, are on full swing.

Construction of 12th Cargo berth is progressing as scheduled. Pre-qualification of contractors and obtaining environmental clearance for construction of 13th and 14th Berth is being done. The Government of India gave in-principle approval for construction of Berth Nos.15 to 18 and we will be coming out with an open advertisement, inviting offers from Private Sector for construction on BOT basis. We have identified M/s. I.D.F.C. as Project Advisor for the purpose.

Similarly, “Development of Tuna-Tekra Port” with deep drafts is on the anvil. Detailed Project Report is getting ready. Obtaining Environmental Clearance is under process. At this port, Panamax and Post-Panamax vessels will be handled effectively.

Dredging works for deepening and widening our Navigational Channels to bring it to 13.5mtrs. and maintaining all throughout the year has been awarded and works commenced. So, limitation of drafts in comparison to other neighbouring ports will be the thing of the past at Kandla Port, once the above projects are completed.

We expect to commission the full-fledged Container Terminal with the state-of-the-art equipment on the Berth Nos.11 & 12 very soon. I request the Trade to continue to patronize Kandla Port for routing their container shipments for cost effective handling.

We have taken many Road and Railway connectivity projects for augmentation, upgradation and improvement. Financial Closure of Samakhiali-Palanpur broad gauge project is expected to be achieved in October, 2005 and we are contributing to another Broad Gauge Project viz. Bhildi-Samdari, which will make us closer to our rich hinterland by 114/118kms. and achieve cost savings in logistics to the Trade. There will not be any hassle for evacuation and carting the cargo at Kandla Port.

As assured in the earlier message, we introduced “Comprehensive Storage Policy”. We hope it is working well to the advantage of the Trade. We have been concentrating to develop Open Storage and Closed Storage area within the Port and Outside the Port also so that the increasing needs of the Trade are catered to. I, heartily, thank all the Trade who responded to our tenders for warehouses and tank farms overwhelmingly. We, at Kandla Port, are interested to create as much infrastructure as possible by planning in advance so that we may not lag behind in serving the Trade on this account also.

We are also pursuing the other two important projects viz. “Setting up of a Bunkering Terminal” and “Setting up of a Ship Repair Facility”, for which “Expression of Interest” will be issued soon for prospective investors. Similarly, we intend to set up a Captive Power Plant under Non-Conventional methods of generating Electricity and also studies are afoot to explore the possibility of a LNG Terminal either at Kandla or Vadinar.

I thank once again to all those who are patronizing us in serving the EXIM Trade. We commit to provide world-class Port Infrastructure and professional services for your utmost satisfaction.

(A. Janardhana Rao),

Chairman,

Kandla Port Trust.