DP World seeks breakthrough in Kulpi port project

Dubai-based DP World is not giving up hope of developing a port at Kulpi on the Hooghly estuary, though it is already six years since the company has entered into an agreement with the West Bengal government, reported The Financial Express.

Anil Singh, managing director, DP World, Indian subcontinent, said the company was ready with money but that nothing had moved after the contract agreement was signed in 2004.

"The delay is frustrating but we still hope to move ahead with the project," Singh said. "It is not time as yet to pull out of the project but if finally we find no signs of a breakthrough then may be we have to pull out."

The port at Kulpi with 6.5 million TEUs per annum capacity was planned in 2004 with an estimated investment of US$350 million. DP World, Kolkata-based Keventer Group andWest Bengal Industrial Development Corporation formed a company, Bengal Ports Ltd, to set up a container port, 74 km downstream of Kolkata, on 700 acres with 2,500 acres of special economic zone (SEZ) and a ship-breaking yard appended to it.

The project was originally conceived by the US-based P&O but Dubai-based DP World, currently operating 49 terminals across the world, took over the Kulpi project as part of its P&O acquisition.

The bone of contention is sharing the dredging cost with the Kolkata Port Trust (KoPT). While Singh argued that it would be wrong if KoPT burdened them with the dredging costs of Kolkata and Haldia ports, KoPT officials said there should be no reason why Bengal Ports should not share cost of dredging since it would also be the user of the same navigational system.

KoPT officials said there was no initiative from the promoters of Kulpi port to talk on the issue but Singh said since "the person to officiate at the authority level of KoPT is still undecided and arrangements as of now are temporary, the company did not come up for discussions".

According to Singh, the port would require to be connected with a four-lane expressway and a railway link. Although railway minister Mamata Banerjee has made some budgetary allocation in this direction, there has been no government initiative in creating a four-lane expressway, he said.

Source: Cargo News Asia