KPT successfully auctions liquid tank terminal

April 27, 2015 10:38 am Published by

Proactive role played by Ministry of Shipping & Port appreciated

THE Kandla Port Trust (KPT) has finally allotted the liquid tank terminal (LTT) installed over 50 acres of land at Kandla, which had been lying closed for almost 3 years.

Credit for this development goes to the Ministry of Shipping and the Port Administration for their efforts in ensuring a successful auction, which will result in huge revenue increase for KPT and other incidental benefits to all concerned.

The Ministry had announced new Land Policy Guidelines in January 2014, under which the e-tender cum e-auction method was introduced, following which KPT commenced auctioning of various land parcels.

The LTT facility is a major development installation undertaken since the new policy came into force. Though it took a long time to reach this final stage, it would be a boon to users who suffered badly due to its non-availability.

The Minister of Shipping and the Secretary (Shipping) have been taking all possible steps to ensure expeditious and successful implementation of the new Land Policy, 2014, which provides a transparent mechanism for allotment of land in the possession of the Major Ports. Accordingly, KPT has been trying to leverage its land bank by inviting bids for several parcels.

The LTT was leased to FSWAI, the highest bidder, to whom it originally belonged. The bidding process closed at Rs 1,056.17 per square metre per annum (psmpa) as against the benchmark reserve price of Rs 905.17 psmpa fixed by KPT and the Tariff Authority for Major Ports (TAMP).

KPT would be the biggest beneficiary from the auction. Apart from receiving a huge amount in lease rentals, it would earn from the increase in liquid cargo traffic which had got diverted to other nearby ports after the facility became dysfunctional. The LTT boasts a huge storage capacity of around 3.80 lakh kilo litres, comprising 158 storage tanks capable of storing all sorts of liquid cargo such as edible, chemical, and petroleum (ABC class). Liquid storage charges, which were considerably high due to shortage of storage capacity, would now be reduced, reflecting in the ultimate cost of products which are dependent on use of such chemicals routed through the Port.

Also, vessels would have to wait less at the Port and be saved of the resultant heavy demurrage. This will save the nation a huge outgo of foreign exchange towards demurrage charges, and is a step towards realisation of the Prime Minister’s “Make in India” initiative.

The development would also generate numerous direct and indirect employment opportunities on account of the increased traffic.

Under the dynamic leadership of the Port Chairman, Mr Ravi M. Parmar, KPT plans to auction various other land parcels that it owns so as to boost revenues and achieve greater heights, highlighted a release.

Categorised in:

This post was written by Atlantic Admin