The Hindu Business Line : SAIL allowed to use Haldia berth V for three more months

THE Haldia dock authorities have permitted the public sector steel giant SAIL to continue operation in the berth five of the dock for three more months.

The tenure of the agreement between Kolkata Port Trust and SAIL over the use of the berth on priority basis expired on Thursday. SAIL was supposed to shift its operation to berth 4A. However, that did not happen. The berth 4A, being constructed by the International Seaports Private Ltd on BOT basis, is not yet ready.

SAIL, therefore, asked for more time to use berth five.

It might be noted that the agreement between SAIL and the Kolkata Port on the use of the berth five of the Haldia dock was signed on November 7,1992.

The tenure of the agreement was valid for 10 years, extendable by another five years with the consent of the both sides. Accordingly, the agreement expired in November 2002.

Since then, the extensions have been asked for (by SAIL) and granted (by the dock authorities) on a piecemeal basis - initially for six months, and then for another six months, and now for another three months.

According to the agreement, the vessels calling at Haldia on SAIL account would be given the priority berthing facility at berth five.

But the dock authorities would also extend the same facility to Hindustan Lever Ltd's vessels but the number of vessels on HLL account must not exceed 12 in a year. In 2002-03, the throughput of the berth was 1.5 million tonnes — 1.25 m.t. on SAIL account and the balance on HLL account.

While SAIL mainly handled coking coal imports, HLL handles rock phosphate and sulphur in the berth.

Once berth five has been vacated by SAIL, it will be handed over to a private firm on O&M (operation and maintenance) contract basis.

Accordingly, Haldia dock authorities have already invited bids from private firms. Several private firms are believed to have responded to it.

Meanwhile, the Haldia dock authorities handled 2.94 m.t. of traffic in October — the highest ever volume handled by the dock in any single month and thus surpassing the previous best of 2.91 m.t. handled in July 2003.

Cumulatively, from April to October, the total throughput was 18.334 m.t. compared to 15.994 m.t. in the corresponding period of the last year, thus posting 14.63 per cent growth, according to dock sources.

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