Kandla Port Trust

Dear Friends.

I am happy to share with you that KPT handled 45.9 million tons during 2005-06, registering a growth rate of 10.48% against almost nil growth in the preceding year. This growth rate is slightly more than national average growth of 10.34%. First time in Kandla Port, we handled over 16 million tons of Dry Cargo, with higher productivity levels. Similarly, we crossed 2000 mark in handling of number of vessels for the first time. We achieved lowest handling cost among the major ports in India. The Plan Expenditure of Rs.91.45 crores incurred by the Port in terms of creating facilities was the highest among major ports. Other productivity parameters showed substantial improvement, All these achievements, I honestly believe, was only due to the wholehearted co-operation and support extended by all of you.

As regards other developments that you might be interested to know, I am happy to announce that we could berth 12m-draft vessel at Port directly without any lighterage for the first time very recently. There used to be times, I remember, my esteemed clients desired more draft at their preferred port when the draft was like 9.1mts even in the recent past. We are marching fast and attain the still higher drafts soon. Plans are afoot to provide 14mts draft in the navigational Channel as well as at all berths.

Tenders for construction of 13th 16th berths with world-class standards on BOT basis have been floated and after thorough discussions with the Ministry of Shipping, the last date for receipt of RFQ (Request for Qualification) applications has been extended unto 15.5.2006. These berths would add capacities of 8 million to the Port.

Construction of 12th Cargo is in full swing and it is expected to be completed by October 2006, as scheduled. License Agreement for setting up a full-fledged state-of-the-art ABG Kandla Container Terminal will be signed shortly and thereafter, M/s ABG Heavy Industries, along with the collaboration of Voltri terminals, Genova, Italy will start functioning and provide world-class services to the Trade. The terminal will be set-up on 11th and 12th Cargo berths, with a berth length of 545 Mts.

M/s Essar Oil Ltd., at Vadinar, will start functioning their refinery from August, 2006 and their SBM & Product Jetties will be utilized from July-August, 2006 . These facilities will have a capacity of 12 million tons of Crude Oil and Products.

We started construction of Barge Handling Facilities at Tuna for the exclusive handling of barges and coastal traffic, which will be opened for operation during this year itself.

We started commissioning 3 nos. of 25 ton capacity ELL wharf cranes, in addition to the existing 9 cranes and in the process of procuring 6 more 25/30 ton capacity , which will not only add capacity but also enhance levels of productivity levels for faster turnaround of all dry cargo vessels.

We are pursuing our ambitious project of development of a deep-draft satellite port at Tuna which will have 17.5 Mts. of draft, where Liquid Handling Facilities for Oil Refineries, Mega-Thermal Power Plant, and International Mega Shipyard are proposed to be set-up and serviced. The capacity of Tuna Outer Harbor will be 20mmtpa.

Deployment of higher capacity Mobile Cranes, Bagging and Stitching Plant and Weigh-bridges by the private parties to augment the handling rates of their captive cargo and port general cargo will be fructified soon.

It is a delight to know that broad gauge line between Palanpur and Samarkhiayali has been commissioned and trains started running on the line.

This much-awaited project brought your Kandla Port much nearer to the northern hinterland i.e., by 113kms, making railway transportation cost effective.

I am also happy to share that in our floating Dry Dock, which is the only of this kind in this country, a large vessel with LoA of 105 Mts. has been berthed recently for repairs for the first time in the history of Kandla Port. It heralded the regime in the Port where large size ships can be repaired also.

With all these developments and facilities, We, at Kandla Port, is fully committed to provide world class port services to all our esteemed customers at the most economical tariff. If you have any queries and suggestions, please feel free to interact with my colleagues or me at any time through e-mail or otherwise.

Thanking You for all your unstinted support and patronage. We are at your service..

Yours Truly,

A.JANARDHANA RAO

Chairman@kandlaport.com or

Ajanarao@hotmail.com