Kandla Port Trust

Dear esteemed customers,

At the outset, let me wish on behalf of my Kandla Port family all of you a happy, prosperous, bright and eventful New Year, 2007. I also would like to take this opportunity to share some of the achievements and progress of your preferred port, which you have been, patronizing with so much support and affinity.

With constant systems improvement and customer satisfaction, Kandla Port has been certified to be an ISO 9001-2000 port. So, your favorite port has joined the premier league of Quality Ports in the world. We feel, this honour casts more responsibility to work towards your utmost satisfaction always with renewed vigour and enthusiasm.

The traffic at this port is growing constantly @ 15.04% and as on 22.1.2007, we handled 41.90 million tonnes as against 36.42 million tonnes, thereby showing 5.48 million tonnes more than the traffic handled during the corresponding period of the previous year. While thanking you for the excellent co-operation extended to the port, I would like to reiterate our commitment to the trade for the seamless service and hope would like to grow at much faster rate. We have, together, broken so many records in handling different commodities during the year. We could achieve a record throughput of 5 million tonnes during December 2006 which is the highest ever monthly throughput achieved so far. We proved our record in handling wheat and fertilizers, both from seaside as well as shore side, viz., by rail and road, in a smooth and hassle-free manner. In fact, we earned appreciation both from the Trade and Government of India for the initiatives and efforts made in this regard. What is important is that we could win the confidence of the agencies and the ministries concerned that we could live up to the expectations even in times of crisis. Thanks to all concerned who worked in great cohesion and coordination in this regard.

On the developmental front, M/s ABG Kandla Container Terminal has already commissioned 2 new high profile harbour mobile cranes with 17 reach on berth no.11 and the new reach stackers have already arrived. They also made arrangements to place sufficient tracker trailers, apart from procuring new ones. They also mobilized the experienced work force. They intend to start the operations in full-fledged way from 1st week of February 2007. Our 12th Cargo Berth is almost completed and it will be available for the Trade from 1st of February 2007. Tenders for dredging in order to provide deep draft up to 12.5 mts in front of berth nos. 7 to 10 are under invitation. Once this dredging is completed, Kandla Port will have 6 cargo dry cargo berths with 12.5 mts draft where 50,000 tonners can be handled. This will give a great boost to the trade at Kandla Port. We entrusted the task of exploring the modification of existing berth nos1to 6 for deep-drafted berths, to IIT, Chennai and they, in principle, agreed that these berths can be made to have 14 mts draft, with certain modifications. With this, I am confident that Kandla Port shall provide 14 mts all along the dry cargo berths and will be deep-drafted port.

We received the PPPAC `s clearance to our proposal of construction of 4 dry cargo berths nos 13 to 16 on PPP model. We will be placing the proposal before CCEA for final approval. Once it is received Cabinet's approval, rest of the formalities in bidding process will be completed and I am hopeful, we will be to sign concession agreements with 4 successful parties before the end of March, 2007.

We hosted in our web site, www.kandlaport.gov.in, an notice inviting expression of interest and the brief project details for our 3 important developmental projects viz.,(i) development of berthing facilities at Tuna, off Tekra, (ii) construction of Ship building and Repair Complex and (iii) development of off-shore facilities for handling liquids ,off Tekra. While we receive a good response, I request all the investors to make use of these exciting investment opportunities for development of port facilities at an excellent port site viz., Tuna., under PPP model. I would urge not to miss this great opportunity. Please send the expression of interest as early as possible. We also intend to develop Bunkering Terminal at Kandla Port under private participation and approval for the same from the Ministry of Shipping is expected shortly.

Barge handling facilities for exclusive use of barges and coastal cargo are developed at Tuna in terms of jetties, back up area, lighting, offices, separate road etc and the project is likely to be completed by end of February, 2007. This will facilitate handling of coastal cargo and barges in a big way.

Our proposal of development of Port based SEZ within a land area of 6100 hectares and entails an investment of Rs7500 crores, has already been cleared by Board of Approvals and Commerce Ministry recently. We are awaiting the formal approval. This is, perhaps, the only SEZ that does not have any restrictions and can be commenced right away. This will, again, give a great boost to the development of Port and port based industries, apart form generation of employment. The advantages of situating a unit in SEZ and being developer must have already known to you.

The Proposal of merger of KDLB with KPT is under final stages of approval by the Government of India. The notification for super session of KDLB will be issued shortly. This will be a major step in facilitating the Trade without extra cost of KDLB and dealing with multiple agencies.

M/s ESSAR have already commenced operations at their SBM and Product Jetty at Vadinar, within the Kandla Port and the operations are in full swing. We are happy that these infrastructual facilities will go a long way in adding substantial throughput of the Port.

We procured a new high-powered Tug of 50 T B.P (ASHWINI) and a new modern pilot launch (NIHARIKA) to our fleet in order to ensure smooth handling of ships at Kandla and Vadinar. They, also, helps, in a way, in reducing the turnaround time of ships and avoid delays. We awarded the work for construction of 3 more warehouses. Development of 40 hectares of open plots is in the process, adding to the already developed 66 hectares. Shortage of open and closed spaces will be the thing of the past, with these schemes. We are also contemplating development of ample railway sidings and lines within the port area so that substantial rail traffic can be handled within the port itself. Three more high capacity ELL cranes have also been commissioned recently, adding to the existing fleet of Nine.

Cleanliness and computerization, although, are given special focus and attention, they are not getting highlighted among the trade and public. I assure you that your port shall be always clean and tidy and with the increased computerization, we will drive towards paperless office and transactions. I would urge your contribution and suggestion towards our endeavors.

Although many developments taking place in estate management, projects like UMPP, Car Complex etc., marketing and business development, I would like to share the final outcome of our efforts in the next bulletin.

While thanking you once again for the excellent support and encouragement to your favorite port, I reiterate our commitment for the utmost customer satisfaction and quality of services. Any suggestions and feed-back are welcome.

Yours truly,

(A. JANARDHANA RAO)

chairman@kandlaport.com or

ajanarao@hotmail.com