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V. Sajeev Kumar

Kochi , June 15

THE Water Transport Workers Federation of India has demanded that the Rajiv Gandhi Container Terminal of the Kochi port, which generates an annual operating surplus of Rs 25 crore, should not be privatised at any cost.

In a memorandum submitted to the Union Shipping Minister, the Federation President, Mr M.M. Lawrence, pointed out that all that is needed is an investment of Rs 150 crore to enhance the level of performance and profit of RGCT to Rs 100 crore per annum.

With the additional investments, the port would be able to handle medium size mainline container vessels that would substantially increase the levels of profitability, he added. Mr Lawrence alleged that there are many flaws in the proposed concession agreement under which RGCT is to be transferred for operation for the period of 8-10 years to the licensee, Dubai Port International.

While the licensee did not give any guarantee with regard to investment, the port commits an investment of Rs 932 crore for improving supporting infrastructure such as deepening of the channel and for providing rail and road connectivity.

The agreement provides an escape route for the licensee to abandon its commitment to build a transhipment terminal at Vallarpadom or at Puthuvypeen and to prolong the period of concession beyond 10 years.

The proposed concession agreement, awaiting clearance from the Ministry, gives monopoly rights to DPI and renouncement of statutory right vested in the port trust to provide container port service, he said.

The recent experience in the Chennai port and another in the Shanghai port a few years ago clearly demonstrate misuse of monopoly right by private container terminal operators in the port sector.

Demanding the Ministry to reject the proposal of the Kochi port to hand over RGCT to Dubai Port, the Federation urged the Minister to take urgent steps for building an international container transhipment terminal in the port through public or private investment.

The feasibility for such a major terminal had already been demonstrated through studies by various private agencies.

The workers federation, he said is not against private investment to set up the terminal in the port. The opposition is only restricted to privatisation of profitable areas of port operations that have been built up through public funding.

More Stories on : Shipping | Trade & Labour Unions

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