‘We strive to improve connectivity to the US, Far East, Europe’

The International Container Transhipment Terminal (ICTT) at Vallarpadam has been operating below its capacity since it was commissioned in 2011. The terminal, developed mainly to attract the Indian containers trans-shipped through Colombo port, appears to be nowhere near achieving its objective.

However, DP World, which runs the terminal, seems to be quite bullish on its prospectus with a visible improvement in cargo volumes.

According to Anil Singh, Senior Vice-President and Managing Director, Vallarpadam ICTT has been growing steadily, registering a quarter-on-quarter growth of 9 per cent in Q2 and Q3, and 11 per cent on the number of ships. He said that Indian exim trade has to bear an additional cost in transhipping containers through neighbouring ports. “Why should we incur additional cost for transhipment business in a foreign port, when there is a similar facility available here?” Singh asks.

“We hope to attract more shipping lines and improve the connectivity to the US East Coast, Far East and Europe. The Galex service that was launched earlier this year is a step towards this,” he says. Excerpts:

The under-performance of Vallarpadam terminal is a major concern. How do you plan to improve that?

We have organised trade meets jointly with the Cochin Port Trust and have able to create awareness of the benefits of doing business through ICTT to the trade.

We have also taken various marketing initiatives, including deploying an executive marketing team in the hinterland for cargo owners to speak about the competitive advantages of doing business through Vallarpadam ICTT.

In addition, we have excelled operationally with a crane productivity of 30 moves per hour per crane, and together with the VRC discount schemes, we are an attractive option.

Currently, there are three mainline services per week connecting Kochi to the East, one of which is from Australia. There are also four weekly services to West Asia. There are two direct services to Europe, and a service connecting US East Coast.

During the last three months, several new services started calling at ICTT including Galex mother service to Jebel Ali, which ensures a direct connectivity from China to Kochi on import leg and to West Asia on export leg.

How far can we rely on new services to US East Coast, when slowdown in Europe has affected lines?

When the shipping lines are going through a difficult period, we shouldn’t be burdening them with additional costs.

The market slowdown is certainly a big challenge, but from a trade perspective we should look at the benefits it has for the shipping lines and the cargo owner by having a port of call in Kochi.

Will you be able to capitalise on the gesture offered by Kochi Port, with 100 per cent discount on VRC for a US East Coast service?

We are happy that for the East Coast there is a discount. But as a port, it is imperative that there is no discrimination between services; be it the US East Coast or Far East, the charges including discounts should be similar.

The gesture offered by the Port is conducive for attracting mainline calls. But for calls to achieve the threshold volumes and make it an attractive proposition for shipping lines, there is a need for the entire supply chain leading to Kochi to become more cost-efficient.

Currently, most of our cargo is getting diverted to Colombo. We are keen to attract the business that we have lost to Colombo. For that, it is critical that we give state-of-the-art facility, with a deep draft, price competitiveness and relaxation in Cabotage.  

Of late, the cashew trade in Kollam has raised complaints on high handling charges, forcing diversion of cashew shipments to Tuticorin. What are your plans to get back this cargo?

Cashew is an important commodity and significant in terms of numbers. During the ‘Kaju conclave’ in Kochi this year, we had the opportunity to interact with some cashew exporters/importers.

What we have heard from the customers is that Tuticorin is getting volumes becausse of the shift in factories to that area, due to climatic conditions, cost of labour, etc. 

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