Date:21/08/2006 URL: http://www.thehindubusinessline.com/2006/08/21/stories/2006082100370600.htm

Back Kakinada ports riding high

Ch. R. S Sarma

The Kakinada ports have been doing well and the stage is set for their expansion.

It has been a smooth sailing for the Kakinada ports — the deepwater port managed by Kakinada Seaports Limited, and the old anchorage port under the control of the State R&B department — the past two years and the stage is set for the expansion of the deepwater port with the construction of one more berth. Now there are three berths at this new port.

The deepwater port, constructed in the 1990s by the Andhra Pradesh Government and later handed over to the private consortium, passed through some pretty rough weather initially phase. During 2005-2006, the port recorded a throughput of 14 million tonnes to earn Rs 80 crore; 22 per cent of this would go to the State Government as its share.

Mr N. Sridhar, Director of the State Ports Department, said that the progress of the new port in recent times has been very satisfactory and the stage has come for its expansion. He said that the State Government recently cleared the plan to construct the additional berth — the fourth — at the deepwater port.

Jetty for offshore vessels

There is also a proposal to construct an offshore vessel jetty in view of the increased offshore exploration activity for oil and gas in the Krishna-Godavari basin. Huge reserves of gas have been discovered in the K-G basin. According to Mr Sridhar, more than 700 vessels visited the port since the intensification of the offshore activity.

Together, the new berth and the offshore jetty will cost Rs 230 crore and the Kakinada Seaports Limited will finance the project. The old anchorage port is also doing well, with rice exports from the port picking momentum. During 2005-2006, the old port handled a record 28 lakh tonnes of cargo, earning Rs 11 crore. The modernisation of the old port is also being taken up with the creation of mechanical handling facilities at the wharf at a cost of Rs 1.5 crore.

Mr Sridhar said the State Government is committed to the development of the old port and envisages the co-existence of the two ports. It is a sensitive issue as more than 10,000 barge workers, mostly hailing from the fishermen community, are dependent on the old port.

Steel barge controversy

The old port has been caught in a controversy. The authorities have asked steel barge owners and operators to construct more barges to handle the cargo at the old port. But the latter are reluctant to do so, without a firm assurance from the officials there will be assured cargo for the barges.

The Kakinada Steel Barge Operators' Welfare Association that though the going has been good for the old port for the past two years, due to increased rice exports, this may or may not sustain, last long and wondered about the wisdom of making long-term investments in barges. "In the past, too, when we invested Rs 10-20 lakh on each barge, we faced uncertainty and losses for a long time. We have now nearly a hundred barges and the capacity is adequate for current needs. If the authorities want us to build more barges, we need a clear assurance from them on cargo," said Mr B. Ramamurthy, a steel barge operator. The port authorities have rejected the contention and the barge operators have moved the Andhra Pradesh High Court on the issue.

Whatever turn the steel barge controversy may take, there is no doubt the AP Government has to come out with a clear policy on the old port; ad hoc decisions will not do. It is necessary to state clearly how it envisages the harmonious development of the two ports.