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Cochin Port Officers’ Association has urged Union Shipping Minister Nitin Gadkari and Kerala Chief Minister Oommen Chandy to constitute a high-level committee to recommend remedial measurers for the revival of the Vallarpadam International Transhipment Container Terminal.
The ICTT, according the association, was the country’s dream project when it was launched in 2005. However, it could not grow into a true International transhipment hub due to various reasons, both domestic and foreign, even after Cabotage laws were relaxed in December 2012.
The association cited reasons such low cargo related charges at Colombo, higher capacity at neighbouring ports, lack of interest shown by shipping lines, non-availability of sufficient base cargo (Origin Destination) in the immediate hinterland etc for the terminal’s dismal performance.
A press statement issued here pointed out that the rationale behind the project was to have a modern world class transhipment terminal in India, thereby augmenting the Indian exim trade, both in terms of cost as well as time and efficiency, which at present are happening in foreign ports like, Colombo, Singapore and Salalah.
The Union Government had already spent over ₹1,700 crore for the project and the terminal operator about ₹1,100 crore. However, this project has not taken off as envisaged and was still functioning in its 35 per cent capacity even after completing three years of operation.
The project was commissioned with a capacity of 1 million TEUs per annum in the first phase, predominantly for catering to transhipment cargo. But, even after three years of commissioning of ICTT, the maximum throughput achieved is only 3.46 lakh TEUs per annum and the transhipment volume was only less than 27,000 TEUS.
If this situation continues, the association said that the very purpose of ICTT will be defeated and thereby, Kochi Port will be thrown into huge irrevocable debt. Moreover the huge investment on the supporting infrastructure like road and rail connectivity will also go in vain.
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