Cochin port extends rebate on vessel-related charges

The Cochin Port Trust (CPT) has decided to extend concessional tariff in vessel-related charges (VRC) to container ships for one year till September 2013 at the International Container Transshipment Terminal (ICTT).

The move is aimed at boosting container handling, which has remained stagnant in the current year while registering a marginal decline of 0.9 per cent in the April-August period over last year.

Port sources said India Gateway Terminals Private Limited, which operates ICTT, has targeted to handle 385,000 TEUs (twenty foot equivalent units) this year and 800,000 TEUs in 2013. However, it could handle 222,049 TEUs during January-August. The terminal had handled 333,000 TEUs in 2011.

On par with Colombo port
A special tariff in VRC matching Colombo port will be charged for mainline vessels with international ports of call in continents of America, Europe, Africa, Australia and in China. Up to 86 per cent concession will be allowed for a mainline vessel of 60,000 gross register tonnage with 12 hours of stay at the port. Also 30 per cent concession will be allowed for foreign feeder vessels.

C Unnikrishnan Nair, traffic manager, CPT, said charges on a par with Colombo port would attract more mainline vessels to Cochin. Moreover, the government had granted relaxation of the cabotage policy to allow transshipment of export-import containers from ICTT at Vallarpadam, Kochi, and this too would help attract traffic.

According to the Port Trust Board, a vibrant feeder vessel network is vital for ICTT to emerge as a major transshipment hub in Southeast Asia.

50% rebate to container vessels
CPT will also grant a 50 per cent rebate to container vessels with minimum two sailings from Cochin to West Asia or Southeast Asia within 30 days, subject to the condition that only 20 per cent of the cargo loaded from ICTT is for Colombo.

The port said concessional tariff had helped enhance cargo handling and vessel calls at the port during 2011-12. Mainline vessel traffic increased to 72 vessels calling in 2011-12, accounting for 48,706 TEUs as against 60 with 41,532 TEUs in 2010-11.

In the April-August period of the current fiscal there were 61 mainline vessels call with 40,859 TEUs. Feeder vessel traffic was also vibrant as 8 per cent increase in container throughput was recorded in 2011-12.

Though there was an increase in cargo handling and vessel calls, over 50 per cent of the cargo from India is being transshipped at overseas ports like Colombo, Singapore, Salala and Jebel Ali.

Port sources said uniform draft of 14.5 metre at the 600-metre-long berth would be achieved this month itself. “The terminal can now berth vessels up to a capacity of 4,000 TEUs. A 13-metre draft has already been achieved and dredging is in progress,” he said. By getting 14.5 metre draft, mother vessels can berth at ICTT.

Though the terminal has a bunch of natural advantages, it faces serious threat on the operation side from ports like Colombo and Singapore. The main competitor is Colombo as it also has the same natural advantages.

The Sri Lankan government is developing a major port at Hambanthotta, on the southern side of the country. The new port, which very close to the international sea route between Europe and South East Asia, is being developed on 40 acres. The government wants to develop this as a major transshipment hub in Southeast.