The Syama Prasad Mookerjee Port Authority (SMPK) has taken a significant step towards alleviating Kolkata’s road traffic congestion and enhancing its cargo handling capacity with the approval for a new barge terminal at Balagarh Island.
This move comes as part of the broader strategy to modernise Kolkata’s cargo infrastructure and improve logistics efficiency in the region. With the project set to handle millions of tonnes of goods annually, the terminal at Balagarh promises to shift a substantial portion of cargo traffic currently handled at the Kolkata Dock System (KDS), reducing pressure on Kolkata city roads and improving overall cargo flow in the region. The new terminal will be strategically located 85 km upstream from the bustling city of Kolkata, along National Waterway 1 (NW1). This positioning is set to offer a more efficient and sustainable alternative for cargo movement, which has long faced challenges due to the city’s congested roads. With an estimated capacity to handle 2.7 million tonnes of cargo annually, the Balagarh terminal will facilitate the movement of 150,000 twenty-foot equivalent units (TEUs) of containerised goods and 0.8 million tonnes of dry bulk cargo, including vital commodities such as coal, pulses, peas, and fertilisers.
Currently, the KDS, which includes the Netaji Subhas Dock, Khidderpore Dock, and Budge Budge liquid jetties, is under pressure to accommodate increasing traffic. Balagarh’s barge terminal is expected to function as an extended gateway for the port, handling a considerable share of the container and bulk cargo destined for the northern hinterland. The shift of cargo handling operations to this new terminal could significantly reduce the logistical challenges, especially those posed by long truck turnaround times in Kolkata, where waiting times can stretch to up to three days. The terminal is being developed on a 100-acre plot, part of a larger 900-acre land area at Balagarh, with the port authority holding around 308.75 acres. With a draft of 3 metres in the navigational channel, the terminal is equipped to accommodate flat-bottomed barges with a capacity of up to 3,000 deadweight tonnes (dwt). It will also provide around 300 acres of additional storage space, further strengthening the operational capacity of SMPK.
The project, estimated to cost ₹499.80 crore, will be executed in phases. The port authority will manage basic infrastructure development, including road connectivity, a road overbridge across a railway line, dredging of approach channels, and ground improvements. The terminal construction will be carried out through a public-private partnership (PPP) model, where private sector investors will be responsible for constructing berths, installing cargo handling equipment, and building onshore infrastructure. In line with the national government’s vision for improved inland waterway transport, SMPK has secured environmental clearances to proceed with the project. According to government sources, the tender for the project is expected to be floated in May, with the winning bidder selected based on the highest royalty offered per tonne for handling both container and bulk cargo. The project is expected to be a game-changer for logistics in the region, addressing the growing demand for efficient and cost-effective cargo handling solutions. By reducing the dependency on road transport for cargo movement, the Balagarh terminal aligns with India’s long-term vision for a more sustainable and eco-friendly logistics sector.
The development is not only expected to ease the pressure on Kolkata’s road networks but also provide a significant economic boost to regions across North Bengal, East Bihar, the northeastern states, and even Nepal. With improved connectivity to the hinterland, industries in these areas stand to benefit from reduced logistics costs, faster turnaround times, and enhanced competitiveness. For instance, a large portion of the cargo, such as coal and steel products, will be transported to steel plants in Durgapur, Bokaro, and Burnpur, streamlining their supply chains. SMPK’s vision for the Balagarh terminal fits into the larger framework of enhancing India’s inland waterway infrastructure. It complements ongoing initiatives to modernise the logistics ecosystem and support the growth of regional trade. The terminal will also contribute to the national goal of fostering an efficient and green maritime transport system by promoting the use of barges, which have a lower carbon footprint compared to road transport.
This development signals the port authority’s commitment to optimising the capacity of the Kolkata Dock System and expanding its cargo handling footprint to meet the growing demand in the region. By offering a solution that combines sustainability with economic efficiency, the Balagarh barge terminal stands as a critical part of Kolkata’s future logistics strategy, providing a model for the evolution of India’s transport infrastructure.
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New Barge Terminal at Balagarh to Ease Kolkata Port Congestion