KOCHI: The Vallarpadam International Container Transshipment Terminal is fast turning out to be a liability for the Cochin Port Trust. The terminal has registered a negative growth of 5 per cent in the first ten days of January, compared to the same period in the financial year 2010-11.During the first ten days of January 2012, 8,400 Twenty-foot Equivalent Container Units (TEUs) were handled at the terminal, against 7, 965 TEUs during the same period in January 2011. The total growth rate is just 7 per cent during the period between April 2011 to January 2012, whereas, the average annual growth between 2005 and 2010 was 10 per cent. The ICTT, which has a capacity to handle 1 million TEUs annually, handled only 2,71,582 TEUs during April 2011 and January 2012, while the volume of containers during same period in the last financial year was 2,53,646 TEUs.The `3,200-crore transshipment terminal which was expected to alter the development map of Kerala and to give Kochi a prominent place in the global maritime map, was commissioned by Prime Minister Manmohan Singh in February 2011. The terminal is developed and operated by the Dubai Port World. The shipping companies are not showing any interest in Vallarpadam terminal, which has affected the Cochin Port Trust. In addition to the lack of expected income from the ICTT, the port trust has to spend an additional amount of `80 crore annually for maintaining the 14.5-metre depth of its channel. The channel was constructed at a cost of `400 crore with the assistance from the Union Government.Considering the expense for dredging, the port management is in a fix. Since a huge amount have been spent for capital dredging, the port has to maintain the channel to retain the depth. If maintenance is stopped, the amount spent will be a waste as the channel would be blocked because of siltation.However, according to the terminal operators, the growth rate is just the opposite. They claim positive growth of 5 per cent and around 3,40,000 TEUs were handled at the terminal during January 1 to December 31, last year. “The reason for fall in the volume of cargo through ICTT is not the Cabotage law alone, as claimed by the Dubai Port World. Exorbitant and hidden charges for handling containers is also a reason. While the Port Trust is offering concession for vessels despite severe financial crisis the terminal operators should also enhance their efforts for marketing,” said P M Mohammed Hanifa, president of the Cochin Port Staff Association (CPSA).
Comments
0 comment