KOCHI: Though India has been expecting a gradual shift in container transhipment from Colombo port to the Vallarpadam International Container Transhipment Terminal (ICTT), in view of the economic crisis in Sri Lanka, the annual results of Cochin Port tell a different story. The volume of container handling at ICTT dropped from 7.35 lakh Twenty Equivalent Units TEU) in 2021-22 to 6.95 lakh TEU in 2022-23 which has caused concern among the port authorities.
The container traffic at ICTT had been growing at the rate of 8-10% for the past few years and Kochi port had performed better compared to other South Indian ports during the pandemic.
However, sources at Cochin Port Authority claimed that the port registered an overall growth of 2.04% in the last financial year and handled 35.255 million tonnes of shipments during the period.
“The ICTT has failed to utilise the infrastructure facilities provided through huge investment from the public exchequer. The Cochin Port is spending Rs 140 crore annually to maintain the required draft of 14.5 m. Besides Rs 60 crore is being granted as concessions on Vessel Related Charges (VRC) free of cost to shipping companies by the port for making the terminal competitive and attracting ships.
Replying to Elamaram Karim MP, the Union shipping minister had informed the Rajya Sabha in February that Rs 577.23 crore loss was incurred by Cochin Port Authority on account of VRC during the last 10 years,” said Cochin Port Joint Trade Union Forum general convener C D Nandakumar.