The Hindu Business Line : `Kochi port development vital for economic growth'

THE wide spectrum of developmental activities proposed to be taken up by the Kochi port will substantially benefit the overall economic benefit of the State in the years to come, experts said at a seminar.

The development of Kochi port is highly integrated with the regional economy and it is intrinsically linked with the future of Kerala. The port will be instrumental to the continued economic growth of the State, Mr C. Unnikrishnan Nair, Deputy Secretary of the port, said at a seminar.

Conventionally, the port is perceived as an efficient gateway for trade and commerce. It could provide the interface between commerce and regional development issues and focus on employment generation and enhancement in the quality of life, he added.

According to him, the setting up of the Vallarpadam Transhipment Terminal project will accelerate terminal related employment opportunities such as yard operation, crane operation and IT back-up.

The jobs related to terminal are loading, general warehousing, conditioned warehousing, distribution, quality control, trailer lending and leasing etc. The new activities vary from container security to fumigation, ballast water management to container commerce.

The transhipment terminal projects creates a set of ancillary projects such as cruise terminal, LNG re-gassification terminal, bunkering terminal, ship repair complex and port-based special economic zone. The economic impact from the allied projects are very significant and spatially influences regions in the State away from Kochi, he said.

The LNG terminal, he said provides cost-effective eco-friendly substitute for the naphtha used as industrial fuel now. It facilitates availability of low-cost fuel for thermal power plants. Consequently, the cost of electric power in the State would decrease to be supportive to competitive manufacturing by over 20,000 small-scale industries.

Likewise, the setting up of a cruise terminal with international standards could accelerate the performance of the fast developing tourism sector in the State.

At present, cruise vessels spent only one day in Kochi. A cruise terminal at Kochi could ensure arrival of more such ships in the port thereby enhancing tourist spending.

According to Mr Nair, the SEZ will ensure that exporters in the State get low rates of logistics, lower domestic tax rate and concessions which should help them to increase the turnover and manage the risks and ultimately afford process upgradation.

It will also ensure that Kerala's exporters are placed at the same competitive level that his foreign competitor enjoys. A very high degree of employment could be generated by this sector alone, he added.

The phenomenon of moving of labour intensive part of manufacturing to developing countries is widely catching up. With its rich human resources, Kerala could qualify to be an excellent centre to take up outsourced manufacturing of computer hardware and electronic goods making use of port-based SEZ. The Kochi port could also render cost-effective and reliable logistics to support the venture, he said.

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