Comments
After more than a month-long impasse, the ABG-LDA-run Haldia Bulk Terminals finally announced a walk out from Haldia citing law and order issues. In a media conference call, Gurpreet Malhi, CEO of HBT, explained issues other than law and order that dogged HBT for last two years.
Apart from law and order what were other issues that dogged HBT?
We were pressurised by the unions to have excess workers. We could have continued with them if there were appropriate amount of cargo.
We have suffered losses to the tune of Rs 60 crore from the operations at the Haldia dock complex (HDC) over the past two years. This is against an investment of about Rs 150 crore.
Some quarters suggest your decisions are linked to financial health of HBT. How do you respond to it?
We are quite comfortable in terms of finances. It is evident from the fact that we continued our operations at HDC despite incurring losses.
Given a second chance, what would be the issues that HBT would like to address in order to continue operations at HDC?
I would say we had fulfilled all the obligations and did not make any mistakes. It is our counterpart (KoPT) and the administration that have defaulted.
Given the equipment installed at the two berths at HDC, we had a capacity to handle up to 18 million tonnes of cargo a year. So, we were justified to demand at least 50 per cent (9 million tonnes) of our actual handling capacity. This, in turn, would have helped KoPT earn more revenues as we pay them the highest at Rs 150 for per tonne cargo.
But don’t you think there is a decline in overall cargo availability?
Cargo is there. Due to certain vested interests KoPT was not providing us adequate volumes.
What will you do with the equipment?
We will try to monetise our assets at other ports, where we have operations.
Has there been any clause for exit in the agreement with KoPT? Will you have to compensate the port authorities?
As per the implied provisions in the agreement, anybody can exit. I don’t think we will have to pay any compensation to KoPT. Rather, we will claim for demurrages.
>ayan.pramanik @thehindu.co.in
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.