Kandla Port Trust

Dear friends,

At the outset, I wish you a Happy and Prosperous New Year 2006.

I have taken over the charge of Chairman, Kandla Port Trust, with effect from 21st November, 2005. I would like to thank the Trade for the support and co-operation extended to me during my tenure as Chairman-in-charge of KPT, which I would cherish always.

It was a matter of pride for Kandla Port that the Hon’ble Minister for Shipping, Road Transport and Highways, had visited Kandla Port in the first week of November, 2005 and complimented the efforts made by the Port Administration towards efficiency and cost effectiveness.

I would like to apprise the EXIM Trade that continued efforts have been made by Kandla Port to bring various projects to fruition looking to the future growth of traffic at Kandla. We expect traffic to the tune of 90 MMT by the end of 2013-14.

I would like to share my happiness with all of you that KPT continued to take strides in traffic handling and breaking its own records every now and then. Of late, the growth records in terms of Cement handling, Scrap discharge, MOP discharge, Urea handling and Salt loading have been tremendous. As on 01-01-2006, we handled 3.8 million tones of additional traffic than the traffic handled in the corresponding period of the last year, which works out to 12.7% growth rate. The actual traffic is also in excess of the targets fixed for the Port, by the Ministry of Shipping. I hope your continued support and encouragement would go further on and on and we would be able to handle at least 45 million tones by the end of the Financial Year 2005-06.

On the developmental front, you might be aware that we had taken up an ambitious integrated developmental plan under the National Maritime Development Programme worth Rs.5081 crores. It is a matter of immense satisfaction that most of the projects have taken off the ground and are in progress at various stages. I would like to enumerate the most important of them for your appraisal as under:

1. Construction of 12th Cargo Berth is in full swing and will be completed by the scheduled time, i.e. June, 2006.

2. Notice Inviting Tender for our prestigious BOT Projects for Four Dry Cargo Berths with an overall length of 300 mtrs. is in progress and will be in the newspapers as well as our websites from today. We are expecting a great response to this venture by the EXIM Trade, looking to the potentials of KPT.

3. M/s. Essar Oil Limited have also re-commenced the construction activitites of the Refinery at Jamnagar and the marine related works at Vadinar for the purpose of handling Crude and Products and the progress has reached upto 50%. We are sure that the Crude and Product handling at their SBM and the Product Jetties will be commenced by August, 2006.

4. Erection of three higher capacity cranes at Kandla has already commenced and it will add to our Electric Level Luffing Cranes’ number to 12. We are contemplating to purchase six more cranes with much higher capacity, looking to the state-of-the-art needs in handling the cargo in the Port Sector. With these every berth at Kandla will have at least two shore cranes for the purpose of handling dry cargo.

5. Privatization has been encouraged, in addition to KPT’s own efforts for bringing higher capacity cargo handling equipments, like Gottwad/ Libbhhier Rubber tyred Cranes, installation of six weigh bridges, setting up of Bagging and Stitching Plants inside the Port area, in order to ensure smooth and hassle free flow of cargo.

6. Three new covered Storage Godowns will be commissioned shortly and 40 Hectares of land has been ear-marked for the purpose of development of stacking areas for Bulk Cargoes.

7. As a prelude to the ambitious project of Development of Tuna Port as a Satellite Port with higher draft, for the post-panamax vessels, we have already tendered out the work for construction of barge handling facilities, which will cater to the barges being handled at Kandla for Dry Bulk and Break-Bulk cargoes.

8. The most important expectation of the Trade at Kandla Port over the years was to increase the drafts in the channel. This requirement is being met very successfully by increasing the draft upto 11.7 mtrs by continuous dredging and the draft will reach 12 mtrs. very soon. By the end of 2006, I am sure KPT will be able to provide at least 12.5 mtrs. of draft for all the vessels calling at Kandla.

9. Inception Report for the Ship Repairing complex has already been completed by the consultants and advertisement will be released very soon for inviting private participation for the development of Ship Repair Facilities at Kandla. Similarly, Bunkering facilities are also being contemplated under private participation for which the Ministry’s approval is awaited.

10. A much awaited dream project of Kutch Container Terminal is going to be fructified in 2006 and is in the final stages of approval with the Ministry of Shipping.

11. The Hinterland connectivity in terms of Rail Connectivity has also been taken up under Special Purpose Vehicle, namely Kutch Railway Corporation. This Corporation has taken up the project of conversion of MG line from Palanpur to Samakhiyali into Broad Guage. Similarly, the work for conversion of the existing MG lines into Broad Gauge in the Bhildi-Samdhari Sector has already been approved by the Ministry of shipping to be taken up by the Corporation. The preliminary work for this project is in progress. This project will reduce the distance from North India to Kandla Port by 76 kms.

12. Internal Roads in Kandla Port have been broadened and strengthened and you will find the four-lane smooth road connectivity to all KPT Gates, which is perhaps one of the unique features amongst the Major Ports.

13. With all these developmental projects and the unbridled patronage of the Trade to KPT, I am very hopeful that KPT will scale greater heights in terms of activities, traffic, cost effectiveness and service to the trade.

I await you valuable feed-back any time on any issues related to Kandla Port Trust either by E-mail or through any other mode. I will definitely respond within the shortest possible time.

Yours sincerely,

( A. Janardhana Rao )

Chairman