The Hindu Business Line : NMPT set to unlock ‘box’ full of potential

New Mangalore Port Trust (NMPT), the only major port in Karnataka, is all set to unlock the potential in the box cargo segment. The port is betting on the growth of container cargo over the years, better connectivity with hinterland areas and the facilities available at the port to increase its share in container traffic.

To be set up under the BOT (build, operate and transfer) basis, the NMPT has issued a global invitation for request for qualification (RFQ) for the establishment of a container terminal.

The proposed berth will have a dredged depth of 15.1 metres and the available quay length would be 300 metres. The extent of area available for storage yard would be in the range of 80,000 sq metre to 1.20 lakh sq metre.

The project, which is estimated to cost around Rs 260 crore, is likely to be completed within 24 months of the award to the successful bidder. It is learnt that the NMPT has received responses from 14 firms for the RFQ documents.

GROWTH STORY

The share of container cargo in total traffic was almost nil till 2000. In 2000-01, the port handled 1,891 TEUs (twenty-foot equivalent units) of containers, making a beginning in the container handling segment.

However, the pace gained momentum in the last five years. The number of containers handled at the port has increased three-fold in just five years. The port handled 28,555 TEUs of container cargo in 2008-09 as against 8,943 TEUs in 2004-05. The number may appear small when compared to other major ports that handle containers in a big way. But the increase in container cargo in the past five years highlights the need for a proper container terminal at the port.

Mr P. Tamilvanan, Chairman of NMPT, told Business Line that the marketing efforts by NMPT in various hinterland locations such as Hassan, Chikmagalur, Mysore and Bangalore have been yielding good results. He is of the opinion that the terminal will help attract more container cargo to the port.

People in the shipping sector feel that Mangalore has the advantage of location in attracting container cargo.

The port (which is 22 km away from the international maritime route) is located between Jawaharlal Nehru Port Trust and Kochi Port Trust — two major ports that handle containers.

Sources in the shipping sector said that a proper container terminal at New Mangalore could help attract more container cargo as one of the container ports in West coast is getting congested and another neighbouring port is facing frequent labour problems. In such a situation, the NMPT could gain by unlocking the potential of box cargo, they said.

CONNECTIVITY

Connectivity is another factor that strengthens the need for a container terminal. Three national highways and three railway networks connect the port with the hinterland. While National Highway No. 17 provides north-south connectivity to the port, National Highway no. 48 connects Mangalore with Bangalore, the State capital. The National Highway no. 13 runs north-east from Mangalore to Sholapur. All these three national highways pass through the port’s primary hinterland.

Added to this, the NMPT is well connected with the railway network. The railway marshalling yard in New Mangalore Port is a part of the Southern Railway. This is connected to the Konkan Railway network at the nearby Thokur village, providing access to Mumbai via coastal Karnataka and Goa.

The South-Western Railway at Kankanady in Mangalore provides access to the Karnataka heartland and Bangalore and Mysore via Hassan.

It is said that Karnataka has potential for more than 75,000 TEUs of containers. Of this, the NMPT handled around 28,555 TEUs last fiscal.

Cargoes such as raw cashew and coffee contribute a major share to the port’s total container cargo. In fact, cashew played a key role in attracting mainline container vessels to the port two years ago. The port handled 3,727 TEUs of raw cashew cargo in the first four months of the current fiscal, against 2,366 TEUs in the corresponding previous period. Coffee-growing areas such as Kodagu, Chikmagalur and Hassan, which fall under the port’s captive hinterland, have potential to increase container traffic at the port. The port handled 1,069 TEUs of coffee containers from April-July in 2009-10 as against 925 TEUs in the previous fiscal.

Other cargoes such as reefer and wax candles are contributing a significant share to the NMPT’s container cargo movement. There is scope for exploring the potential that lies in textile and gherkin cargoes from the hinterland. The port authorities have received positive feedback for handling textile and gherkin cargoes at a trade meet in Hassan recently.

The location of the inland container depot at Hassan and the Hassan-Mangalore rail link need to be better used for exploring the container cargo potential in that region. The Container Corporation of India has recently announced rail freight rates for the movement of loaded containers from Hassan to Mangalore Port.

The new industrial policy of the Karnataka Government proposes to develop several industrial corridors in the State. These proposed corridors are likely to contribute a high volume of container cargo in future, as most of them are either situated in the captive hinterland or in the secondary hinterland of the port.

It remains to be seen how effectively stakeholders in the shipping sector unlock the potential of the proposed container terminal in the years to come.

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