SMPK gets approval for Balagarh barge terminal

The Syama Prasad Mookerjee Port Authority (SMPK), formerly known as the Kolkata Port Authority, has received the green light from the government to develop a significant barge terminal at Balagarh island, approximately 85 kilometers upstream from Kolkata. This strategic move aims to alleviate traffic congestion on Kolkata city roads by shifting a portion of the cargo currently handled at the Kolkata Dock System (KDS).

The upcoming barge terminal at Balagarh is designed to handle a substantial 2.7 million tonnes of cargo annually, comprising 150,000 twenty-foot equivalent units (TEUs) of containerized goods (1.9 million tonnes) and 0.8 million tonnes of dry bulk cargo, including essential commodities like coal, pulses, peas, and fertilizers. The navigational channel connecting KDS to Balagarh boasts a 3-meter draft, enabling the docking of flat-bottomed, wide barges with a capacity of up to 3,000 dead weight tonnes (dwt).

Government sources indicate that SMPK is likely to float the tender for this ambitious project in May. The Balagarh Island offers a considerable land area of around 900 acres, with the port authority possessing approximately 308.75 acres. The terminal itself will be developed on a 100-acre plot.

The Kolkata Dock System (KDS), consisting of the Netaji Subhas dock, Khidderpore dock, and Budge Budge liquid jetties, will see Balagarh function as an extended gateway, providing an additional 300 acres of storage space to cater to the cargo destined for the northern hinterland.

Strategically located on National Waterway 1 (NW1), which connects Haldia and Allahabad, the project will be implemented through a two-pronged approach. The basic infrastructure, including road connectivity, the construction of a road overbridge across a railway line, ground improvement, and the dredging of the approach channel and turning circle, will be undertaken by the port authority using the engineering, procurement, and construction (EPC) mode. The terminal itself will be constructed in two phases with private sector investment through a public-private partnership (PPP) model.

The total estimated cost of the project is ₹499.80 crore (or ₹538.20 crore including the road overbridge). Of this, SMPK’s EPC component, amounting to ₹92.60 crore (or ₹131 crore with the RoB), will be partially funded by the Jal Marg Vikas Project of the Inland Waterways Authority of India (IWAI). The private investor will be responsible for an investment of ₹407.20 crore to construct the berths, install cargo handling equipment, develop the cargo storage area, build onshore infrastructure, and dredge the berth pocket. The project has already secured the necessary environmental clearances.

According to government sources, SMPK intends to shift a portion of its operations to Balagarh to cater to the projected increase in container and general cargo traffic and to overcome the logistical challenges posed by restricted cargo movement within Kolkata city, where truck turnaround times can be as long as three days.

The development of the Balagarh terminal is expected to significantly benefit regions in North Bengal, Asansol, Durgapur, Birat Nagar – Jogbani (Nepal), East Bihar, and the northeastern states by offering shorter distances and improved service levels, leading to reduced logistics costs and enhanced competitiveness for industries in these areas. Furthermore, the terminal can potentially serve as an extended gateway for other ports in the region, including Haldia and future developments, facilitating better connections to IWAI terminals on NW-I.

Estimates suggest that out of the 5.4 lakh TEUs currently handled at the Kolkata Dock System, approximately 4.9 lakh TEUs (90 percent) originate from the four eastern states, and a significant portion of this traffic is expected to shift to Balagarh. Similarly, a considerable percentage of SMPK’s West Bengal and northeastern states-bound peas and pulses cargo, Nepal-bound fertilizer cargo, and coal and coke cargo destined for steel plants in Bokaro, Durgapur, and Burnpur have the potential to be handled at the more proximate Balagarh terminal.

The tender for the project will be awarded to the bidder quoting the highest aggregate royalty per tonne for handling both container and bulk cargo. This initiative marks a significant step towards modernizing and optimizing cargo handling infrastructure in the region.