Comments
Kochi Port’s decision to discontinue the Ro-Ro service seems to be proving detrimental to its own interests in the backdrop of declining productivity at its container freight station (CFS).
Stuffing and de-stuffing operations at the CFS in Willingdon Island declined by 100-150 TEUs in June 2017 after the port management terminated the Ro-Ro service contract with the Kochi-based Lots Shipping in May.
Cargo diversionAccording to informed sources in the shipping fraternity, the figure is likely to go up further as the discontinuation of the Ro-Ro operations impacted en block movement of import containers to the CFS for ramp examination from ICTT at Vallarpadam. This cargo is now being diverted to various private CFS in the proximity of ICTT, causing a revenue loss to the port CFS that had reportedly garnered approximately ₹7 crore in 2016-17.
The Ro-Ro service was introduced in 2011 as a joint initiative of the Inland Waterways Authority of India and Kochi Port at an investment of ₹17 crore to decongest the city roads. This had enabled easy movement of cargo laden container trailers reaching Willingdon to ICTT.
Fall in volumeIt is also pointed out that cargoes from ICTT meant for the southern region always preferred the port CFS for ramp examination as it was convenient for logistics providers to move the consignments. Quoting figures, the sources pointed out the stuffing and de-stuffing in port CFS in May was 358 TEUs while the figure in the corresponding month in 2016 was 373 TEUs. However, during April 2017 when the Ro-Ro service was in full swing, the CFS carried out 677 TEUs of stuffing and de-stuffing.
The cancellation of the service has forced many of the logistics providers to depend on road for transporting cargo to port CFS, covering almost an extra 40 km.
The port CFS is one of the biggest in Kerala with an area of 10,000 sq metres and customs bonded facilities for personal effects and unaccompanied baggage of multiple consignees.
When contacted, IWAI officials pointed out that they are in the process of re-tendering the service and floated enquiries simultaneously to find out the availability of Ro-Ro vessels for the job.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.