The Hindu Business Line : `Vallarpadam delay may affect Kochi port growth'

IF the Vallarpadam transhipment terminal does not come up within the next five years, Kochi port will lose its case since additional capacities planned at Colombo and Salalah would make it an unattractive destination.

The cause would be better served if experienced international terminal operators/shipping lines are roped in for implementing a calibrated growth and development strategy, says Dr Jose Paul, formerly acting chairman, JN Port, and Chairman, Mormugao Port Trust.

The proposed project appears to have run into difficulties over the issues of (1) management transfer of existing Rajiv Gandhi Container Terminal (RGCT) to the successful bidder (2) development of an alternative site in Puthu Vypeen (3) borrowing developmental funds from Rs 4,000-crore reserves of the Mumbai Port Trust (4) transferring existing public terminals to international monopolies and (5) fixing up a time limit for the transfer of RGCT to Vallarpadam.

There is indeed merit in the view that an alternative site at Puthu Vypeen would be more suitable for the proposed terminal. The expert view the world over is to build new terminals along the seacoast to avoid huge expenditure on dredging and this holds true for Puthu Vypeen. Availability of about 250 acres of land in Vallarpadam may appear to be large for the present but given that the life of a container terminal is 70 to 100 years, the 800-acre site in Puthu Vypeen does seem to be an attractive proposition.

Also, since Vallarpadam is now connected to Vypeen on the west and Bolghatty on the east by bridges, further additions of berthing capacity beyond six along the waterfront might pose problems in the long run. The best solution would be to provide both options to the bidders. Amended tender conditions should hopefully provide for such flexibility.

Dr Paul doubted if the Mumbai Port Trust (MBPT) would make available loan to the Cochin Port Trust (CPT) and enter into a joint venture, judging from the MBPT trustees objecting a Central directive to loan Rs 500 crore for developing the JN Port in close vicinity. When money was required to be spent for development of a neighbouring port could meet with such strong opposition, it would be futile to expect Kochi would be treated any better. Moreover, MBPT has unveiled a plan for construction of a modern container terminal within its own jurisdiction.

There appears to be merit in the suggestion that a time limit should be fixed for shifting the RGCT operations to the new terminal at Vallarpadam or Puthu Vypeen. The successful bidder is required to build a new transhipment terminal - where he is required to attract mainly transhipment cargo, and not domestic container traffic. A five-year period should be sufficient for the successful bidder to build a new terminal either at Vallarpadam or at Puthu Vypeen and transfer the operations from the RGCT to the new terminal.