KOCHI: If all goes well, the ambitious outer harbour project of Cochin Port Trust (CPT) worth Rs 3,050 crore will be ready by June 2020, says A V Ramana, chairman (in-charge), CPT.
According to him, the Indian Navy will give Rs 1,050 crore for the project. Ramana says that the central government may provide funding under Sagar Mala project for outer harbour.
Once outer harbour is in place, the dredging cost of Cochin Port – Rs 120 crore a year now – will drop to Rs 60 crore.
Sagar Mala project is a strategic and customer-oriented initiative of the central government to modernise India’s Ports so that port-led development can be augmented and coastlines developed to contribute towards India’s growth.
“Funding outer harbour project under Sagar Mala is just a proposal. If this is through, we will not have to worry about the financial side of the project,” says Ramana.
Indian Institute of Technology-Madras will submit the sedimentation status of the sea report for the outer harbour project by June 2017. Then, a committee will be appointed to study the financial viability of the project. Cochin Port will, then, approach both state and the central governments for licence. It will take about one year.
“The viability report is expected by December 2017. We expect to get clearance by the Ministry of Environment and Forests by June 2018. Then, the project will be awarded by an open tender. The port expects to complete the project by June 2020,” says Ramana.
Cochin Port was formed naturally due to the great floods of Periyar in 1341 AD, which choked the Muziris port , one of the greatest ports in ancient world. The port was officially established in 1936 and is a major port since 1964.
Over the years, however, the burden of pension and other liabilities and dredging costs have choked the port and it started reporting losses.“Cochin Port Trust has 1918 employees and 7,349 pensioners. The salaries and wages come to Rs 11.64 crore a month, pension is Rs 14.69 crore and gratuity is Rs 1.43 crore. The dredging cost is Rs 120 crore a year. In 2016-17 (till February), the operating income was Rs 448.46 crore and expenses were Rs 329.96 crore. We have made an operating surplus of Rs 118.50 crore till now,” says Ramana.
The port has many positives such as completion of expansion of BPCL Kochi Refinery and increased off-take from Petronet LNG terminal.