The Hindu Business Line : `Despite initial shortfall, we hope to maintain last year's throughput level'

Mr N. Ramachandran, IPS, the new Chairman of the Cochin Port Trust, has initiated steps that will attract bulk cargo after the container operation is shifted to Vallarpadam. He spoke to Business Line about his vision to transform Kochi as a transhipment port for the west bound cargo originating in the peninsula.

Excerpts from the interview:

What are your priorities?

My first priority is to make the Vallarpadam container terminal ready for operation within the scheduled time. We have a contractual obligation to DP World to complete the work on the road and rail connectivity by April 1, 2007.

The initial plan to go for an SPV (special purpose vehicle) between the port and the various entities for the construction of rail and road links has been abandoned in view of the government decision to meet the entire project cost by way of budgetary support.

The cost will be Rs 246 crore for constructing an 8.8-km railway line and Rs 376 crore for the road project.

The next step is to get the environment clearance. The Environment Ministry has given conditional clearance but the Empowered Committee has raised some objections and we are trying to address the issues raised.

Then the priority will be is to complete the projects initiated by my predecessors. All these projects are in different stages of implementation.

At what stage is the bunkering terminal?

The Kerala Government is reluctant to grant sales tax exemption for the bunkering services. But the project, to be part of an SEZ, will not be viable unless some tax concessions are available.

Since the proposed terminal is supposed to handle large volumes, to meet both onshore and offshore bunkering requirements, huge revenues will be generated not only for the port but also for the State Government.

The spin-offs will ultimately benefit the State. We have again taken up the matter with the State Government and I am hopeful.

What is the situation on the traffic front?

Unlike most other ports, the CPT does not handle dry bulk items such as iron ore and coal. The bulk of our traffic, almost 50 per cent, is generated on account of Kochi Refineries Ltd. Due to the shutdown of a plant at KRL, we had a shortage of about 2 million tonnes initially and we were apprehensive.

However, we have made up the initial shortfall and we hope to maintain the last year's throughput level.

The traffic last year was 14 million tonnes and we crossed 13.5 million tonnes early this month.

The collapse of Mattanchery Wharf...

The Committee looking into it is yet to submit its report. However, there are plans to revamp the wharf by extending the berths on various sides.

The construction will be taken up in two stages and the work on Q-3 and Q-4 berths will start soon.

The work on widening the BTP Jetty is about to begin to make it fully operational for bulk cargo. As the silting level in the channel is high, we are deepening the channel to 12.5 metres initially and subsequently to 14.5 metres to handle more bulk cargo vessels.

Once the container operations shift to Vallarpadam, we have to concentrate on bulk cargo.

What about the ICD traffic?

We have requested Container Corporation of India for more frequent services. The Railways has already started construction of a new full rake facility in the Harbour Terminus.

When all this comes through, there will be a good support for ICD movement from southern states.

Moreover, we have taken steps to ensure transparency in operation so that the port users feel comfortable and assured. I want to see exporters from the peninsula using our port in preference to others in the region, particularly those on the east coast, to route their west-bound cargo.

Are you happy with the performance of DP World?

Yes, I am satisfied with the performance of DP World and for right reasons. More and more container operators are now using the port. The congestion has dropped and the operations of the terminal have been streamlined.

However, the port wants some rationalisation of charges introduced on the grounds of launching new facilities. Even the TAMP has taken note of it. As it is, outside the purview of the agreement, we cannot direct them to withdraw such charges.

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`Despite initial shortfall, we hope to maintain last year's throughput level'