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 measurers for the revival of the Vallarpadam International Transhipment Container Terminal.

According the association, ICTT was a dream project of the country when it was launched in 2005. However, it could not grow into a true international transshipment hub due to various reasons, both domestic and foreign, even after Cabotage laws were relaxed in December 2012.

Stumbling blocks

CPOA cited reasons such as lower 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.

In a statement issued here, the union pointed out that the rationale behind the project was to have a world-class transshipment terminal in India, augmenting the Indian exim trade, both in terms of cost as well as time and efficiency, as in ports such as Colombo, Singapore and Salalah.

However, the project has not taken off as envisaged and is still functioning in its 35 per cent capacity even after completing three years of operation. The Centre had spent over ₹1,700 crore on the project and the terminal operator about ₹1,100 crore.

Dismal performance

The project was commissioned with a capacity of 1 million TEUs a year in the first phase, predominantly for catering to transshipment cargo. But the maximum throughput achieved is only 3.46 lakh TEUs a year and the transshipment volume was less than 27,000 TEUS.

If this situation continues, CPOA said, the very purpose of ICTT will be defeated and thereby, Kochi Port will be thrown into huge irrevocable debt. Moreover, the huge investment in the supporting infrastructure like road and rail connectivity will also go in vain.

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