KPT to mandate Dubai Port for Vallarpadam

Kochi Port Trust (KPT) will issue a letter of intent (LoI) to Dubai Port International (DPI) for the Vallarpadam Transhipment Container Terminal Project by the second week of September, said Jacob Thomas, chairman, Kochi Port Trust.

The Union cabinet sub-committee on Economic affairs has cleared the project on Wednesday. According to him, the work will commence as early as possible and the port officials will have discussion with DPI by next week itself.

As per the tender condition, DPI has to start the work within 70 days of getting the LoI. Rajiv Gandhi Container Terminal which is handling the container traffic at the port, will be taken over by DPI and will be operated by them.

The project was long awaited for getting different clearances. The project was originally proposed in 1991 and global tender was invited twice.

But the clearance took long in coming. The DPI sources informed that within a period of five years, the new terminal will be operational and the Rajiv Gandhi terminal will be fully shifted to Vallarpadam in that period.

Thomas said that infrastructure development which include rail, road connectivity to the terminal will be completed within 4 years. The total project cost is estimated at Rs 932 crore. Dredging work will also be undertaken and a minimum depth of 15 metres at the berths is planned.

The port trust will get 33.3 per cent of the revenue as per the tender and the project will be implemented on build, operate and transfer basis. After 30 years, the terminal shall be the sole property of the port trust.

According to various studies, Kochi will be a very important transhipment hub in future on the international sea route as it is based at the mid-point between West and the North and the Far East.

The project will attract more container traffic to Kochi, affecting fortunes of both Colombo and Singapore ports. According to different studies, the minimum viability requirement for the project will be 4,00,000 TEU per annum.

The project also envisages a bunch of other important development projects such as special economic zone, LNG terminal, international bunkering terminal and a lot of tourism related projects. There will be a total investment of Rs 7,500 crore in the vicinity of Vallarpadam terminal. Kerala's future development is depend on the timely execution of these projects.