DP World optimistic, but stakeholders oppose more public spending on Vallarpadam

Debate over public spending at Kochi's ICTT as industry players question terminal's ability to attract cargo.

After the first mother vessel called at the Vizhinjam seaport on July 12, industry players have questioned the wisdom of more public spending to improve infrastructure at the International Container Transshipment Terminal (ICTT) at Vallarpadam in Kochi.

There was no meaning in spending more public money to deepen the shipping channel if there was no guarantee from the terminal operator that it would be able to attract more cargo, said C.D. Nandakumar, general convenor, Cochin Port Joint Trade Union Forum. The forum has been a vociferous critic of the failure of the terminal to achieve the one million-TEU mark. It represents the entire spectrum of trade unions at the port.

Mr. Nandakumar said on Saturday that during the last financial year, the terminal had a container throughput of 7.56 lakh TEUs. He also claimed that the Cochin Port Authority was preparing to provide 16-metre depth in the shipping channel for the ICTT’s expansion in the second phase.

However, DP World, the Vallarpadam terminal operator, is optimistic and buoyant about the future. A spokesperson of DP World said that in the financial year 2023-24, the ICTT recorded its highest ever volume of 7,54,237 TEUs. In the current year, the month of June 2024 recorded the highest ever monthly volume of 79,044 TEUs and the highest ever monthly transhipment volume of 24,678 TEUs.

Over the years, the ICTT has developed connectivity to key ports on India’s eastern and western coasts, enhancing both coastal and EXIM trade. The ICTT offers market access to Kochi with direct connections to West Asia, Far East, Europe, and the Mediterranean. For the 2024 calendar year, it stands at number one in volume handled among south and east Indian terminals.

The ICTT is the only terminal to have a Free Trade Warehousing Zone (FTWZ) on its premises, further enhancing trade efficiency for EXIM trade from the region. In 2024, the ICTT completed part of its second phase of expansion, adding new ship-to-shore cranes, e-RTGs, and yard space, increasing the total capacity by around 40% to close to 1.4 million TEUs.

Meanwhile, Cochin Port Users’ Forum chairperson Prakash Iyer said the Kochi port could act in cooperation with Vizhinjam. “There should be no fresh investment here as the port can grow even without it if it cooperates with the Vizhinjam facility. Bringing cargo from Bengaluru using the dedicated rail connectivity from Kalamassery to Vallarpadam, cutting charges, and being more competitive and productive can still bring sufficient cargo to Kochi to make it flourish,” he said, adding that the port should not sustain losses to improve the depth of the shipping channel.