Photo Feature

With cargo vessel Prime Value V.021 that submerged under water in Hughli river a few kilometers from Calcutta Diamond Harbour, Calcutta on 19th July 2000, Nepali importers lost 130 containers of cargo. The importers were not so much in worry as the goods were insured, but almost every Nepali insurance company suffered a loss from the mishap. Their combined loss is estimated at about Rs. 250 million that they now have to pay as compensation to the importers, though major portion of the value was reinsured with reinsurers.

Problems that the Nepali insurers face in providing marine coverage to the clients for cargo that has to pass through Calcutta Port are illustrated by the photos carried on the adjacent page.

Nepali importers and exporters have always been complaining of the dilapidated docking yard of Calcutta Port. The medieval cargo-handling machines, and frequently striking dock workers have been the usual problems together with the lack of coordination among the Central Indian government authorities, Calcutta port authorities and West Bengal state government authorities that have various controls on the affairs within and outside the port. The recent accident has also exposed the poor state of security there. The loss that the Nepali insurers suffered is not so much from a natural calamity or from sea pirates that operate on high seas, as from the lax security arrangement in Indian waters making the Calcutta Port and dock "a looters’ paradise". Looters were given enough time by authorities to loot the cargo. They were well supported by the salvagers who declared the ‘general average’ first and then declared the total loss after all the goods were evacuated by looters in the manner as seen in the photographs.

The tacit connivance of the port authorities in the looting is clearly indicated by the fact that though the ship had started taking in water on 19th July, it rested on the river bed two days later. Though they were alerted about the incident immediately after the ship started to take in water, the port authorities neither provided proper security to the ship nor undertook a rescue attempt, allege Nepali insurance companies. As the ship was in Indian waters, its security and rescue was the responsibility of the Indian authorities, they maintain.

However, Nepali importers and exporters cannot boycott Calcutta Port as Indian Airlines did with Tribhuvan International Airport last year alleging similarly lax security at the Nepali airport.

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Submerging ship and sleeping port authoritties	Helping to raise the ship by looting!	Heavy ship made light by emptying the containers
"Loot as much as you can. Nobody is coming to stop you. Port authority is waiting for the ship to dock"	Empty containers left behind to be duty inspected by the authorities	"Why are you cutting the pieces so small? Get larger pieces"

Looters' Paradise

How safe are the Nepali consignments passing through India?