The Hindu Business Line : Container transhipment terminal — `Vizhinjam has edge, fits the bill better'

THE debate over which site, Vizhinjam or Vallarpadam, is better suited for development into an international container transhipment terminal, appears to be heading nowhere with the proponents of the respective projects staking claim armed with an array of "favourable factors".

The debate, however, has reached a crucial stage with the Department of Ports, Kerala Government, putting out an advertisement inviting expressions of interest for the development of the Vizhinjam port in the third week of December last year, followed within a few days by a similar advertisement from the Cochin Port Trust for Vallarpadam project.

Ports Department officials insist that both the projects are different and should be viewed independently. They feel both projects can succeed if Vizhinjam is developed as a new deepwater international container transhipment terminal and Vallarpadam as a hinterland feeder port.

They say that this is also in the spirit of the "Sagarmala" project where the prime concern is the growth of business in the sector and establishment of multiple facilities along the coast.

The officials point out that a transhipment terminal would require deep draft and proximity to international shipping routes. Vizhinjam fits the bill on both counts, especially in the matter of draft with hardly any maintenance dredging required. The natural depth available close to the shore is more than 18 metres and going up to 21 metres at one nautical from the coast.

The availability of such a deep draft will ensure passage of the largest of the container liners and those of the future also. These natural advantages will contribute to the success of the Vizhinjam project more than any financial support or project structuring, contend the officials.

They also point out that in terms of operations, a transhipment terminal will handle trade from mainline/mother vessels to feeder vessels. Thus, the hinterland connectivity is of less significance to it than to a container terminal serving the hinterland.

In any case, the lack of an international transhipment terminal has been resulting in a revenue loss of Rs. 1,000 crore for the country a year as per the Tenth Plan document. Almost 70 per cent of the transhipment business meant for India is being handled by ports such as Colombo and Dubai and a deepwater terminal can change the situation, say the officials.

And, in today's context of private sector participation, those who respond to the project proposals will do so based on their perception of the success of the venture. So, the outcome of the bids will largely depend on how the market responds, they add.

Meanwhile, the Capital City Development Forum, spearheading the campaign for Vizhinjam project, has urged the State Government to ensure laying of road and railway lines to the proposed site. The project is seen as vital for the industrial and economic development of the capital city.