The Hindu Business Line : Container transhipment terminal — Kochi Port allays TUs' fears over pvt partnership

THE management of the Kochi port has apprised the trade unions of various aspects of the proposed transhipment terminal project in the wake of the indefinite strike threat from the unions against transferring of the existing container terminal to private bidder.

The port officials led by the Chairman, Dr Jacob Thomas, gave a presentation on the proposed BOT concession agreement to be executed with the successful private bidder.

He explained the necessity for the private-public partnership and the logic behind the incorporation of the various clauses in the proposed agreement for the execution of the project.

A statement issued by the port said that in the meeting it was decided to address the immediate issues and pave the way for establishing the terminal in a time-bound manner.

The unions, though, were not happy about the Government's insistence on public-private partnership as a pre-condition for granting the viability gap fund project, the general consensus was that the support of the Union Government should be availed under conditions not detrimental to the port's future, the welfare of the employees and the interests of the nation.

The union leaders assured that while they have apprehensions on certain terms, they are all for establishment of the terminal without delay.

The Deputy Chairman, Mr A. Janardhana Rao, led the interactive session and answered the queries of the individual trade union representatives.

He also explained the current development in the logistic scenario, which compel the urgent commissioning of the project.

Speaking to Business Line, Mr K.V.A. Iyer, Vice-President of the Cochin Port Labour Union, said that the trade unions had opposed the transfer of the Rajiv Gandhi Container Terminal to private bidder and desired for immediate repairs to equipments and upgrading the terminal.

He pointed out that all demands of the bidders were found accepted in the revised tender conditions. The unions emphasised the desirability of implementing the board's decision to go in for joint venture with other port trusts or foreign public port authority, added.

It was emphasised by the officials that the project has become very attractive for private partners in view of financial gap funding of Rs 932 crore by the Government for deepening the channel, rail/road connectivity from the project site to Edappally and for construction of breakwater.

The clarification of the management that the viability gap funding would be available only if private sector partner is inducted does not augur well, he said.