kandla Port is the premier Major Port of India handling more than 100 million tonnes of cargo. Of this, the share of dry cargo is more than 30 million tonnes. It has created a large infrastructure inside the Port for handling of cargo through rail. However, the said infrastructure was not being optimally utilised as the nearest notified railway station was outside the Port limits. As such, the Railways levied wagon placement charges for handling rakes inside the Port. This led to additional charges on Port users, due to which direct loading inside the Port was mostly avoided by them. Cargo was taken outside the Port through road and then handled. This caused under-utilisation of railway infrastructure created by the Port, apart from increase in cost to the end user and avoidable traffic on road. In view of this, Kandla Port had been trying to notify a station inside the Port limits.
To address this problem, Kandla Port Trust had been making Herculean efforts for notification of railway station inside the Port limits, which would enable running of trains on through distance basis. The issue was discussed at several fora for resolution. At the request of KPT, the issue was also discussed by Secretary, Ministry of Shipping with the Railway Board and, thereafter, by the Minister of Shipping with the Minister for Railways.
In culmination of KPT’s long efforts, Western Railway, on March 24, 2017, notified Kandla Port Dock Rail Terminal (Alpha Code – KPRK and Numerical Code – 08524070) at Kandla Port for handling all types of cargo. With this, freight will be now charged on through distance basis up to the farthest point of the Terminal.
With the opening of Kandla Port Dock Rail Terminal, the exim trade will be benefitted to a great extent as the cost of handling will be reduced considerably on account of non-levy of wagon placement charges by the Railways, which works out to between Rs 32 and Rs 46 per mt, depending upon the cargo. Further, it will also enable increase in rail-borne traffic, which will result in optimal utilisation of rail infrastructure created inside the Port by KPT, which is being under-utilised at present, thereby increasing the Port Trust’s revenue.
This will also provide a major fillip to the rail-borne movement of containerised cargo to/from the Kandla International Container Terminal at Kandla Port.
This is one more step towards lowering transaction costs for the exim trade and facilitating East of Doing Business.
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