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Vallarpadam International Container Transhipment Terminal (ICTT) at Kochi port will struggle to attract cargo unless it becomes cost-competitive vis-à-vis Colombo port, Indian shipping industry sources say.
A comparison shows that a container vessel of GRT 11,998 capacity will attract port charge of $16,936.63 at Vallarpadam, against $3,517.20 at Colombo.
Breakups show port dues and pilotage at Vallarpadam at $4,295.30 and $9,346.44 respectively, as compared to $546 each at Colombo.
Several other cost components too place the ICTT at a disadvantageous position.
Dismissing suggestions that there was dearth of coastal shipping tonnage for feedering transhipped cargo between Vallarpadam ICTT and other Indian ports, the industry sources contend that “Ships will always rush to a port where there is cargo”.
There is no pendency at Vallarpadam, they point out.
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While there is no dearth of coastal cargo from ports such as Kandla, Mundra, Pipavav, JNPT, Mormugao and New Mangalore to Vallarpadam, cargo inducement in the opposite direction is virtually non-existent.
The sources say that the problems facing Vallarpadam ICTT are far more complex than they appear to be, and mere relaxation of Cabotage restriction will not help attract traffic.
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