The Hindu Business Line : Sagarmala Project: Kochi port charts major plans

THE Kochi port is taking initiatives under the Sagarmala Project to emerge as "a global hub port of India" offering single-window services for diverse requirements of the maritime trade.

The port stands to benefit substantially in the long run if the ambitious Sagarmala project materialises as the port authorities have worked out an integrated development plan to consolidate its position as the country's major port, according to Mr A. Janardhana Rao, Deputy Chairman of the port.

In addition to an international container transhipment terminal project, the multi-faceted development plan includes an international bunkering terminal, a ship repair complex, an international cruise terminal and a port-based Special Economic Zone (SEZ ).

The development of these projects also requires the creation of a host of supporting infrastructure facilities such as road and rail connectivity, deepening and widening of the navigation channel, construction of breakwaters, etc.

The total investment in all these, Mr Rao estimated, would be around Rs 6,000 crore, the bulk of which, about Rs 5,000 crore, must be generated by private investors and the balance in the form of viability gap funding from the government.

"The implementation of the proposed projects will totally change the port's complexion and I am quite sure the port will be comparable to Singapore or any other major international port," he said.

The traffic was expected to grow from the present 13 million tonnes to 82 million tonnes and the container traffic from 0.165 milion TEUs to 3 million TEUs. The average turnaround time would drop to 16 hours from 48 hours and the port aims to achieve a productivity of 30 moves/crane/hour from 10 moves/crane/hour now.

The Shipping Ministry has indicated that the projects identified by the Kochi and Jawaharlal Nehru ports would receive priority under the Sagarmala Project. Whereas at the JNPT, the focus is on consolidating its position as India's major container port, in the case of Kochi, the accent is on setting up several projects.

The Sagarmala Project is estimated to cost about Rs 1,000 billion and a major chunk of it (about Rs 250 billion) is for the development of ports on the westcoast. "Under the ambit of Sagarmala, the initiatives taken by Kochi will transform into tangible reality and prove to be a benchmark of public-private partnership," the Deputy Chairman said.

The proposed port-based SEZ was a case in point. To be spread over an area of 448 hectares covering both Vallarpadam and Puthuvypeen islands — 178 hectares at Vallarpadam and 270 hectares at Puthuvypeen — the proposed SEZ would have the port as the principal developer and private entrepreneurs as promoters for setting up units dealing in textiles, gems and jewellery, petroleum products, chemical engineering goods, agriculture products, marine products, electronic goods, etc.

The port is expected to invest Rs 50 crore in the SEZ and private investors about Rs 7,000 crore. Most of the units would be set up either on BOT basis or on lease of land basis.

A detailed project report forwarded by the State Government to the Union Commerce Ministry last October had been accepted `in principle', he said

The bunkering terminal of international standards, proposed to be set up at Puthuvypeen, would be taken up on licence basis in tune with international practice and an investment of Rs 195 crore was envisaged.

The terminal, when commissioned, was expected to generate an additional one million tonnes of traffic for the port

To encash on the growing international tourist influx into Kerala, the port is gearing up its facilities meet the requirements of increased cruise traffic. It has proposed an exclusive passenger terminal of international standards at an investment of Rs 55-60 crore. The port is also in touch with leading cruise liners in this matter.

As many as 17 parties of international repute including Dubai Cruise Terminal, British Maritime Technology, Hill Associates, etc., have responded to the port's call for Expression of Interest for consultancy in setting up the terminal.

Although the project would be funded through financial assistance from the Ministry of Tourism and the Kerala Tourism Department, the port was also sourcing for financial assistance from the Japan International Co-operation Agency (JICA), Mr Rao added.