Coal news and updates

Ministry go-ahead for trans-shipment zone on east coast

July 30: The Ministry of Shipping, on July 28, issued a directive to start trans-loading and trans-shipment of bulk cargos at the Kanika sands trans-shipment zone to attract more cargos to Kolkata, Haldia and Paradip ports.

“The Ministry of Shipping is taking various measures to resolve the long-standing dispute relating to the Kanika sands trans-shipment zone to the satisfaction of all the concerned parties -- Kolkata Port Trust, Paradip Port, Odisha government and others. Directives to this effect are being issued upon instructions by the Minister for Road Transport, Highways and Shipping Nitin Gadkari for operationalising the Kanika sands trans-shipment zone,” said an official release from the ministry.

The trans-shipment zone, which is basically a nodal point for redistribution of cargos, will help reduce the cost of imported or exported goods.

Kolkata, Haldia and Paradip ports would be the immediate beneficiary as reduced cost of import and exported goods will result in more cargos to be diverted at these ports, bringing additional revenue to the exchequer. Moreover, these ports will now have the capability to handle the large-sized Panamax and capesize vessels round the year without spending huge amounts on dredging.

“Shallow water ports’ capacity can be enhanced to handle larger vessels, thereby reducing the current shortage of deep draft ports. This will provide interim relief while the major port projects are developed to full capacity. Trans-shipment infrastructure will act as an extension to major ports, thereby enhancing port capacities and revenues without incurring huge amounts of capital expenditure,” the release added.

Additionally, the government also expects that the Kanika sand trans-shipment zone will help National Thermal Power Corporation Limited’s (NTPC) imported coal transportation to its Farakka power plant. “It will benefit NTPC and other prospective users of the supply chain, as bigger vessels can come nearer to these ports, thereby avoiding multiple handling of cargo. All such cost saving will ultimately be passed on to the end- user,” the release said.

The government expects the results of this trans-shipment zone to show within 8-10 months.