The International Container Transshipment Terminal at Vallarpadam will reduce operational costs and time for shipping lines and logistics operators transshipping containers via international ports such Colombo, Salalah etc  An International Container Transshipment Terminal (ICTT) in Cochin has been on the ‘planning’ radar of the Government of India (GoI) for over two decades. Several studies have clearly demonstrated the geographic advantage that Cochin enjoys over other Indian ports, being advantageously located in close proximity to the global east-west trade routes. Modern international trade has not been able to capitalise on the potential of the booming Indian economy, due to limited infrastructure development in India.Road and rail facilities are not adequate to meet the growing demand and the port infrastructure is unable to service the large container ships afloat at present. This resulted in the emergence of transshipment hubs such as Colombo and Salalah, resulting in higher costs of transportation, which made Indian goods less competitive overseas when compared to China, Vietnam and South East Asian countries. Shipping sector to benefit from ICTT
Presently, 45% of India’s trade is transshipped via hub ports such as Colombo, Salalah and Jebel Ali. Container trade in India has been growing at over 15% year-on-year and therefore, the development of a transshipment hub within the country will serve to catalyse this growth further. The commissioning of ICTT and the consequent calls of vessels will make the markets closer and cheaper for Indian importers and exporters by avoiding a foreign transshipment location. Moreover, inventory carrying costs will also be positively impacted by the commissioning of ICTT.
Another advantage of the Cochin port is that it is an all weather port, which is not affected even by weather change. This offers a great advantage to vessel operators who are able to work on their berthing windows without fail. Moreover, the ICTT will have a draft of 14.5 metres, which with the latest generations of ship-to-shore (STS) cranes in support will facilitate handling of large container vessels afloat on date. Deployment of these cranes will ensure that productivity at ICTT is at par with the international standards.
The ICTT is unique in its position as it is the only global transshipment hub supported by a hinterland that extends across India, which gives it a captive volume of more than 8 million TEUs (twenty foot equivalent). Creating a transshipment hub within the country will now give importers and exporters alternative solutions to moving their cargo at lower costs. The traders will now have a wider range to choose from such as road, rail, coastal and inland waterways – an inter-modal transport mix best-suited to their requirement of cost and time.
Other benefits
The development of the ICTT will provide several business opportunities for entrepreneurship related to development of water transportation, road transportation, warehousing/logistics centres and container freight stations (CFS). ICTT is one of the largest, and arguably the most significant, integrated project in the Indian port sector since independence.
Apart from construction of the greenfield container terminal, Cochin port is ensuring its connectivity via 18 km four lane National Highway link, an exclusive 8 km electrified railway line etc, at an investment of close to Rs 3,000 crore.
The investment climate in Kerala has been sullied by the experience of the past. The development of the ICTT as well as associated infrastructure will help the state to showcase the ‘image makeover’. In turn, an improved image of Kerala as an investment destination will attract additional investments into the state and generate employment opportunities to meet the aspirations of the educated and attitudinally well-aligned youth.
Suresh Joseph, general manager, DP World Cochin |
