The Hindu Business Line : Transcare India suggests creation of distribution park at Kochi

Action plan
To create a detailed lay out planning.
Apply for relevant subsidies/grants to increase the profitability of the park. Develop an operational concept for train hinterland connection.
Set up co-operation with inter model operations and logistics providers.

V. Sajeev Kumar

Kochi, March 10

Transcare India Logistics Pvt Ltd, which had submitted a business plan for the Cochin Port Trust, has recommended creation of a distribution park at the proposed port-based SEZ for consolidation and distribution of cargo.

According to the consultants, the project, aimed at developing modern food processing units, would help the port to become the main hub and gateway function for South and Western India and integration of port handling and logistic services.

The consultants suggested the setting up of the Park at Vallarpadam beside the upcoming international container transhipment terminal, where sea transport and land distribution meet. The park can also be used as a storage facility and the main target customers are warehousing/distribution companies and freight forwarders.

Inter-modal transport

The attraction of the park will be the economy of scale that can be achieved in combination with inter-modal transport and its vicinity to the major container terminal. The park is proposed to be constructed on 53 hectares of land leased from the port with an estimated investment of Rs 35.66 crore. The project will be developed as a PPP model with a debt equity ratio of 70:30, the consultants said.

The action steps for implementation are to create a detailed lay out planning; apply for relevant subsidies/grants to increase the profitability of the operations of the park; develop an operational concept for train hinterland connection; set up co-operation with inter model operations and logistics providers.

To raise cargo traffic

The consultants pointed out that Kochi port has a great opportunity to develop a distribution park which did not only cater for goods transports by road or rail, but indeed also by coastal or inland waterway vessels. This would make the port even more attractive to cargo users, potentially generating the opportunity to increase cargo traffic.

The inter-modal terminal is an important part of the distribution park, as it functions as the interface between the port and the park. The interaction between the port and the inter-modal terminal can take place either by shuttle trains, road trains or in some instances even straddle carriers.

The park provides reduction of required process time, areas, and costs. Further, it enables concentration on core business and strength for all parties and promotes competition among players too.