Why Kolkata port’s direct service to China is a hit

Syama Prasad Mookerjee Port, Kolkata, (SMP Kolkata) says it has received an overwhelming response for the direct weekly shipping service to China, which has reduced cost and transit time.

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SMP Kolkata’s China-Calcutta service was inaugurated in July in alliance with container shipping line Pacific International Lines.

“All direct call vessels from China have arrived fully loaded. Every week there is one vessel calling to Kolkata from China. The import from China and the Far East markets has been robust and we expect this to continue,” SMP Kolkata Chairman Rathendra Raman said.

“The direct calling from China or the Far East has significantly reduced the cost to customers and cut down the transit time from 45 to 15 days (load port in China to discharge at Kolkata),” Raman said.

The maiden voyage under the China-Calcutta service culminated at the Kolkata Dock System on July 18. 

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SMP Kolkata, formerly known as Kolkata Port Trust, comprises two dock systems — Kolkata Dock System and Haldia Dock Complex (HDC).

The China-Calcutta service has three dedicated vessels — Kota Ria, Kota Rukun, and Kota Rakyat — each with an average parcel load of 622 TEUs, specially tailored to navigate lower draft conditions. The weekly service aims to aid the burgeoning trade across West Bengal, Odisha, Chhattisgarh, Bihar, and the North-East, as well as Nepal and Bhutan.

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Raman said the cargo is largely composed of plastics, machinery and finished goods. “On an average about 750 containers in a vessel are inbound, of which about 20 per cent is Nepal-bound imports. Kolkata is the gateway port to Nepal and Bhutan, and we expect our friends in Nepal will benefit immensely from the reduced logistics cost and speedy transit,” he said.

SMP is offering a 40 per cent rebate on vessel-related charges, which is around ₹5 lakh per vessel call for the direct service, and priority berthing.

The port authorities expect the China-Calcutta service to substantially increase container traffic. 

“Given the four vessel calls each month, we expect to handle about 35,000 containers a year through direct service from China and the Far East. Other operators are also looking to start similar services. In that case, the expected volume may exceed 50,000 containers,” Raman added.

The Haldia Dock Complex, meanwhile, inaugurated a direct weekly service linking Malaysia’s Port Klang and Yangon of Myanmar in June, aimed at facilitating efficient and cost-effective cargo movement in the region.