The Hindu Business Line : Kolkata Dock System plans switching over to shipyard model

TO augment earnings from dry docks, the Kolkata Dock System (KDS), which is one of the two dock systems under the Kolkata Port Trust, proposes to switch to the shipyard model from the landlord model to run the dry docks.

KDS, comprising the Netaji Subhas Dock (NSD) and the Kidderpore Dock (KPD), has five dry docks - two in NSD and three in KDS.

However, the KPD dry docks are suited for smaller vessels, the capacity ranging from 102.1 metre x 14.63 m to 160.02m x 19.5 m, while those in the NSD are for larger vessels — 172.21 x 22.86 m each.

Under the current landlord model, a ship-owner wishing to have his vessel repaired at any of the dry docks in KDS has to select the repairer who in turn will approach the KDS authorities for hiring the dry dock.

KDS will take the rent, the docking and undocking charges from the repairer.

It has been estimated that the rent and the docking/undocking charges, together account for less than 10 per cent of the total repair cost.

The proposed shipyard model therefore presupposes that KDS itself will act as the ship-repairer and quote a total package covering all costs, including the repairing cost.

There are repairing facilities within KDS, which, depending on the requirement, can hire a repairer from outside to get the job done.

However, not all the dry docks will be available for commercial operation as envisaged under the shipyard model.

This is because the port itself, including the Haldia dock, has got more than 40 vessels and river-craft of various types and sizes and, at any point of time, several of these vessels undergo repair work.

Some of the dry docks of the port therefore have to be kept ready for meeting the requirement of the port's own vessels.

So far this fiscal, KDS has earned an estimated Rs 50 lakh from the dry docks operating under the landlord model.

The target is to earn Rs 2.5 crore in the whole year.

Once the shipyard model is in force, the earnings, it is felt, will rise many times more.

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