Uncertainty in dredging may affect Haldia project

With the central government withdrawing dredging subsidy for dredging projects in Kolkata port, industry watchers raise doubt about the ability of the financially strained port to dredge the channel.

Dredging of the channel is required in order to attract large ships and thereby boost cargo traffic in the port.
Inability to dredge the channel may affect the prospect of the proposed second dock complex project at Haldia.

The port received interest from a consortium of Kolkata-based Concast Infratech and Hyundai Engineering Construction for building the 11.7 million tonne (mn t) dock system in the northern part, at an estimated investment of Rs 1,800 crore.

But the consortium reportedly feels that the projections on cargo availability at the proposed complex hinges on KoPTÂ’s promise to enhance the draft of the river from the existing 6-7 metre to 9 metre.

Media reports indicate that, the port authorities should spend approximately of Rs 200 crore a year on dredging to offer 9 metre draft.

The Concast-Hyundai consortium offered to share a mere 1 per cent of the revenue with the port authorities for the dock complex project. In May 2011, KoPT invited interested parties to invest in building a second dock complex at Haldia.

To be built in two parts, the proposed dock complex was to expand Haldia portÂ’s cargo handling capacity from 50 mn t to 73 mn t.