Delay in Cabotage relaxation, dredging hits arrival of large vessels at Vallarpadam

The delay on the part of the Shipping Ministry in relaxing the Cabotage Law, in addition to the absence of assured 14.5 metre draught, is putting hurdles in realising the transshipment potential of the ICTT at Vallarpadam.

Raising apprehension over these issues, highly placed sources in the shipping circles pointed out that the terminal operator DP World is not in a position to provide the required services to the trade even after three months of the commissioning of Vallarpadam terminal by the Prime Minister.

Mainline vessels

The main objective of the transshipment business, the sources said, is to bring in more mainline vessels for the benefit of the trade and the recent issues connected with the dredging works in the port's channel is hampering the arrival of large mainline vessels.

The lack of focus and timeliness from the concerned authorities on issues such as Cabotage relaxation and dredging delay is jeopardising the very promise on which ICTT was set up. The Port had assured a 14.5-metre draught which was a prerequisite for the terminal operator before shifting its operations to the Vallarpadam terminal.

At present, the Vallarpadam terminal is operating like other normal container terminal in India without providing any specialties to the shipping trade. Though various issues like Customs clearance, problems related with SEZ functioning etc have been resolved to a reasonable level following the intervention of authorities, the sources said the delay in achieving the required draught and relaxation of Cabotage Law has now become a matter of concern especially in offering the trade with mainline connectivity and reduction in cost and transit time.

The ICTT can be developed as a transshipment terminal for the subcontinent only if foreign flag vessels are permitted to carry export/import transshipment containers from any of the Indian ports to the ICTT or vice versa. If ICTT is not in a position to compete with transshipment hubs in the region, it would be relegated to the status of any other container terminal in India without fulfilling its dreams of becoming a transshipment terminal, the sources said.

It was also pointed out that lack of sufficient number of container freight stations and availability of covered warehouse space have come as a road block for customers from the hinterland to use Kochi as a hub.

‘Wait and see approach'

More than 10 companies engaged in electronics, lubricants, machinery, automobile parts have already approached DP World for bringing their cargo. However, lack of warehouse space and absence of mainline vessels has prompted them to adopt a ‘wait and see approach', the sources said.

The concerned authorities need to put an impetus on the issues being faced by the terminal in order to attract mainline vessels thereby fulfilling the purpose on which the ICTT was developed, the sources added.

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