Prime Minister Manmohan Singh today inaugurated the first phase of the Rs 6,200-crore International Container Transhipment Terminal (ICTT) in Kochi.
The terminal, built as a public-private partnership between the government and Dubai Port World (DP World), the developer, will allow mainline vessels to dock directly on the Indian shore. Container Corporation of India, Transworld and Kochi-based Chakiate group are strategic partners in the project.
“Our exporters can now access mainline container vessels calling at one of the most well located ports of India. ICTT is thus a long-awaited milestone in the development of our country’s logistics infrastructure,” the Prime Minister said after inaugurating the terminal.
The transshipment hub has seen investments of over Rs 3,000 crore through public-private partnership in the first phase. The figure will go up to Rs 6,200 crore by the end of the third phase in 2016.
On the eve of the inauguration, DP World ran into fresh troubles with the Kerala High Court passing an order against the shifting of the Rajiv Gandhi Terminal from Kochi Port to Vallarpadam for the next three months. The court order came after workers at the Rajiv Gandhi Terminal expressed apprehensions over their relocation.
DP World Chairman Sultan Ahmed Bin Sulayem said, “We respect the court order. If we are aggrieved, we will also go to the court.”
Indian exporters presently go to Singapore and Colombo for international transshipment which involves an additional expenditure of $300 per container. With its own transshipment hub, Indian traders are likely to save not just that money but also 7 to 10 days of transit time.
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Another hurdle for ICTT is the cabotage relaxation which will allow mainline vessels with foreign flag to compete with the Indian flag vessels in the coastal trade.
“Several companies have shown interest in using the ICTT, however due to no clarity on cabotage relaxation customers are yet to sign up,” said Anil Singh, managing director (subcontinent), DP World.
The overall capacity of the terminal now is over 1 million twenty equivalent unit (TEUs), which is expected to go up to 4 million TEUs by 2016. “Till DP World reaches a capacity of 2.5 million, they cannot operate any other terminal in Kochi,” said Kochi Port Trust Chairman N Ramachandran.
The project area has been declared as an SEZ with a road link to connect Vallarpadam with two national highways, besides a 8.5-km rail link connecting the terminal to the railway network.
ICTT currently has a draft of 13.5 metres which will increased to 14.5 metres by March 2011. The dredging work at the terminal for the first phase is likely to go on for the next two months. On completion of the project by 2016, the draft is expected to be 16 metres.
DP World also operates terminals in Mundra, Nhava Sheva, Chennai, Visakhapatnam, It is also developing a new terminal facility in West Bengal.