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Kochi port is likely to call an expression of interest for its outer harbour project soon, to move all future port related activities to a new area.
Conceptual studies by IIT, Madras, and modelling by Central Water and Power Research Station, Pune, show that the intensity of sea erosion in Kochi’s western coast can be reduced significantly if two break waters, each extending 6 km into the sea, are put up at the port’s mouth.
The break waters can also be leveraged to develop the outer harbour in approximately 2,600 acres west of Puthuvypeen and 650 acres off Fort Kochi.
Senior port officials told Business Line that the site is a natural fit for a 20 MMTPA export-oriented oil refinery or a liquid trading hub, subject to environmental clearance. The site has several advantages for projects that depend on import and export flows.
Geographical location
Kochi’s geographical location, close to the international shipping route, also brings in significant cost advantage in the import of crude and export of products, the officials said, adding that the same factors were in favour of setting up the container transhipment terminal at Vallarpadam.
A major factor that acts in favour of such projects here is that the port is capable of handling crude and petroleum products as it services 9.5 MMTPA of BPCL-Kochi Refinery which is undergoing an expansion to 15.5 MMTPA.
The area offered is adjacent to the Puthuvypeen SEZ which is home to several oil industry installations. Being primarily an export-oriented venture, the officials said the new refinery and liquid trading hub can also be structured as an SEZ, which will bring it huge savings in duty exemptions and income tax benefits.
The officials put the tentative estimate cost for the outer harbour project at Rs 8,000 crore.
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