The Syama Prasad Mookerjee Port, Kolkata (SMPK), and the Haldia Dock Complex have experienced a notable downturn in cargo handling during the first half of the fiscal year 2024, reporting an 8.7% decline in combined cargo volumes. In stark contrast, 12 major ports across India collectively achieved a 5% increase in cargo handling during the same period.
Key to this decline is the substantial drop in coking coal volumes, which constitutes a major portion of the cargo for these ports. In the April-September 2024 period, coking coal handling plummeted by 33% compared to the previous fiscal year. SMPK handled 28.54 million tonnes (MT) of cargo in this timeframe, a decrease from 31.26 MT last year. The Kolkata Dock System (KDS) was hit particularly hard, with a significant 15.18% drop in tonnage, falling from 8.38 MT to 7.11 MT. Meanwhile, the Haldia Dock Complex recorded a 6.34% decline, with volumes dropping from 22.88 MT to 21.42 MT.
Notably, apart from SMPK, only Mormugao port in Goa recorded a cargo handling decrease of 5.67%. Conversely, the 12 major ports together processed 413.74 MT of cargo in the first half of FY24, up from 393.9 MT during the same period last year.
The primary factor contributing to SMPK’s cargo decline is the diversion of coking coal shipments to nearby ports such as Paradip and the Adani-owned Dhamra, which offer deeper drafts. For instance, coking coal handling at SMPK dropped to 6.86 MT in H1FY24 from 10.22 MT in H1FY23, while Paradip’s volumes increased by 1 MT to 8.4 MT.
The ongoing spike in seaborne bulk cargo rates, driven by geopolitical tensions in the Red Sea, has further exacerbated the situation. Importers have increasingly avoided anchorages like Sandheads, leading to decreased traffic. The limited draft at Haldia restricts larger vessels, significantly increasing logistics costs and limiting economies of scale for importers. SMPK officials remain hopeful that coking coal volumes will rebound with the onset of fair weather in October, potentially stabilizing operations.
Source: The Statesman
