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| Container terminal set to sail |
| BS Reporter / Chennai Oct 12, 2009, 00:02 IST |
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The Cochin Port Trust has scheduled the soft launch of Vallarpadam International Container Transshipment Terminal (VICTT) at Vallarpadam in Kerala during January 2010. The $500 million terminal is likely to go full steam by March 2010 and will handle 42 million tonnes of cargo.
Speaking on the sidelines of Connect 2009, a two-day seminar on logistics organised by the CII Institute of Logistics, N Ramachandran, chairman, Cochin Port Trust said the project was being built for $500 million by Dubai Port World in two phases. Phase I development, with an investment of $250 million, is ready to commence. Phase II development would commence immediately after the launch of the terminal.
He noted that the Cochin Port Trust invested Rs 890 crore and Rs 300 crore to create road and rail connectivity respectively. Another Rs 349 crore was spent on deepening the draft to 14.5 metre which will help the trade reduce the need to trans-ship their containers through ports like Colombo, Singapore or Salalah. At present, by going through the trans-shipment ports, there is a delay of nearly 10 days, he said.
The new terminal is coming up on 115 hectares of unencumbered land. The first phase of the project for which construction began in December 2007, is designed to handle over 1 million 20-foot containers. The terminal, designed to accept and service the largest container ships afloat today, will have two rail-handling sidings capable of servicing 12 trains a day.
Bunkering terminal
Cochin Port Trust has said its six companies, both domestic and foreign, have shown interest to set up bunkering terminal, which would cater to international ships which are passing through Indian waters. The terminal, according to port trust official, would be first of its kind and would cater to international vessels from the Indian waters.
Speaking to Business Standard N Ramachandran said that currently international ships are not using Indian ports for refuelling since it is costly in India due to various tax and duties, “due to which international ships are shying away from the country”.
Recently, the state government has reduced value added tax (VAT) on bunker products to 0.5 per cent in mid-August from 12.5 per cent previously which would give further boost to the project.
Moreover, the port has strategically located to cater to international ships. From Gulf route its 11 nautical miles and 70 nautical miles from Suez Canal route.
According to Ramachandran every day on an average around 1,000 ships are passing through India waters to and from South East Asia, Far East Asia and Far East from Suez Canal.
“These ships don’t have to come to Indian waters or to the port. We will supply the fuel in barges wherever the ship is anchored”. Currently they are buying fuel from Singapore, he noted.
“This is one of the largest and promising business for the port and for the country”.
The proposed terminal would come at Puthuvype Island, one of the two special economic zones (SEZs) which was promoted by Cochin Port Trust.
Cochin Port Trust recently completed a feasibility study on constructing a bunkering terminal in Kochi port and is on course to meet the 2011 project completion date.
The port has called for tenders and request for qualification. Six companies have shown interest, both domestic and international players. He declined to reveal the company names. It may be noted India’s three biggest oil refiners - Indian Oil Corporation Ltd, Hindustan Petroleum Corporation Ltd and Bharat Petroleum Corporation Ltd - are having their presence in Kochi port as bunker suppliers. Initial capacity would be one million tonnes which can be increased to three million. The port would like to award this project to multiple operators, said Ramachandran.
“This is not a capital intensive project, any company can start business with Rs 50-100 crore capital”. The project will be awarded on a design, build, finance, operate and transfer (DBFOT) basis for a concession period of 30 years.
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