The Hindu Business Line : International container transhipment terminal

Kochi port's Rajiv Gandhi Container Terminal where Dubai Port International is to set up an international container transhipment terminal. — K. K. Mustafah

THE Kochi Port is gearing to provide the common infrastructure facilities ahead ofthe start of work on the international container transhipment terminal (ICTT) and allied projects envisaged under the integrated port development plan.

With the award of the ICTT contract to the Dubai Port International, the Kochi port had initiated a speedy action plan.

The letter of intent has been issued to the company and the agreement is expected to be signed by end-November.

The environmental clearance for the development of the Rajiv Gandhi Container Terminal (RGCT) has been received, the Deputy Chairman, Mr A. Janardhana Rao, said.

The common infrastructure facilities that are to be provided by the port include capital dredging for the navigation channels and the rail and highway connectivity.

Referring to capital dredging, Mr Rao said the draught at the RGCT had to be increased to 12.5 metres to achieve the threshold traffic volume.

The channels also had to be widened and deepened to enable them receive container vessels of 8,000 TEU-plus capacity.

A detailed project and feasibility report for the capital dredging at a total cost of Rs 464 crore has been submitted to the Shipping Ministry for processing.

A separate proposal for taking up the first stage work of capital dredging to provide 12.5 m draught at the RGCT has also been submitted to the Ministry. This is to start by January, as per the implementation plan.

On rail connectivity, Mr Rao said the Railway Board has appointed Rail Vikas Nigam Ltd (RVNL) to validate the study report submitted by the Southern Railways.

RVNL had also furnished the bankability report of the project prepared through its consultants — IDFC and BARSYL.

The consultants have recommended implementation of the project through a cost-sharing basis.

The project has also been discussed informally with the Finance Ministry by RVNL, and the Finance Ministry is expected to consider gap-funding up to 26 per cent of the project cost.

The project, submitted to the Railway Board by RVNL for further processing, is to be executed over threeyears co-terminus with the commissioning of the ICTT.

As per the bid conditions of the ICTT, the port is obliged to give rail connectivity to the project site, which is not available now.

According to the preliminary engineering and traffic study of the Southern Railway, the estimated cost for providing the 8.5-km-long double-line from Edappally Railway Station to Vallarpadam is Rs 125 crore.

Though road connectivity to Vallarpadam is now available with the commissioning of Goshree bridges, it gives access only to the city centre.

However, separate road connectivity has to be provided to the National Highway for the smooth flow of the traffic generated from the ICTT.

The port has requested the National Highways Authority of India to look at the possibility of financing projects to improve the connectivity.

The NHAI had, in turn, awarded the work of consultancy services for development of adequate road connectivity to Intercontinental Consultants and Technocrats Pvt Ltd.

In addition to providing connectivity, the proposed road would also ensure connectivity to Puthuvypeen, where other major projects under the integrated port development plan, such as LNG Terminal, Bunkering Terminal, Tankage farms for KRL, are to take shape.

Under the port connectivity schemes, the NHAI had made two proposals: A four-lane 10-km stretch of NH-47 by-pass from Vyttila to Aroor in the first phase at an estimated cost of Rs 105 crore; and a four-lane connectivity from Vallarpadam to NH-47 at Kalamasserry crossing NH-17, at an estimated cost of Rs 263 crore in the second.

It has been decided to create a Special Purpose Vehicle for both phases for which the port has to bear 30 per cent of the total cost of Rs 368 crore. That is, the port's contribution would be Rs 110.4 crore.

The Ministry of Shipping has been approached for financial assistance — as grant or budgetary support — for the equity to be provided by the port in the SPV. The NHAI has already taken action for getting the environmental clearance for this project.

As per the bid conditions of the BOT contract, it is also a pre-requirement that the project area at Vallarapadam be declared a Special Economic Zone (SEZ) and the environmental clearance obtained by the Port Trust for the commencement of construction of the terminal by the operator.

The Government's approval for setting up the SEZ has already been conveyed by the Commerce Ministry.