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DP World, the Dubai-based international port operator which runs the Vallarpadam container terminal, is quite optimistic about is prospects despite poor performance ever since it’s commissioning four years ago.
“We are bullish on Vallarpadam ICTT even though its under utilisation has affected our investment plans in India”, Anil Singh, Managing Director, DP World Subcontinent told Business Line, responding to a specific question in this regard.
The success of a port, he said, is measured over a long gestation period of 30-50 years. The sector has high investments and it needs lot of patience to manage expectations. The port investments could be viewed only with a long term vision.
The ₹3,500 crore terminal has been working below 40 per cent of its capacity and despite granting concessions like Cabotage exemption, the port failed to attract transhipment cargo.
According to Singh, there are some regulatory issues hindering the prospects of ports in India and they need to be rectified. “There is a need to ensure low cost logistics service for India to be compete in the world market”, he added.
He was in Kochi to mark the launch of the new shipping service Galex by Emirates Shipping, connecting Kochi to Far East. The service has been operated by a consortium of four vessel operators.
Speaking on the occasion, Noel Rattan, Vice President (Operations) Emirates Shipping Lines called upon the port authorities to reduce the port handling charges, which is 6-7 times higher compared to Colombo Port. The port handling charges per call in Kochi is $80,000 while in Colombo, it is $16,000.
However, the terminal handling charges in Kochi are still competitive, he said, adding that the authorities should introduce matching rates in port related charges, as 70 per cent of Indian transhipment cargo was handled at Colombo.
The new Kochi direct weekly call will benefit business and traders for the long term and the company is looking forward to the cooperation of the government on this move, he said.
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