THOOTHUKUDI: VO Chidambaranar port handled cargo traffic of 34.12 million tonnes during the 2021-22 financial year registering a growth of 7.33 per cent compared to the previous year’s traffic of 31.79 million tonnes. Though there is an increase in traffic, the volume of cargo has been declining for the past five years.
The custom clearing agents attributed the declining trend to the inadequacy of mother vessels' callings for quick shipment, increased freight charges by the liners post Covid-19, and dependency on the Colombo port in Sri Lanka.
A customs agent told TNIE that the increased freight charges have been a major constraint to woo the exporters through the VOC port. Triggered by the pandemic, the freight charges per Twenty-foot equivalent unit (TEU) have been multiplied severalfold. The freight charges for European Union countries had shot up to 8,000 USD which was about 900 USD to 1500 USD before the pandemic. The freight charge of 3000 USD to 3500 USD for the United States had increased to three folds now, whereas the freight had been increased to 800 USD which was 80 USD before the pandemic, he added.
Due to skyrocketing freight charges, the exporters prefer Cochin, Chennai, and Mumbai ports, the custom clearing agents said, adding that the garment manufacturers from Coimbatore and Tiruppur are exporting through Mumbai and Cochin ports.
A Karur-based home textile exporter Stiffen Babu said the hike in freight charges and unavailability of mother vessels has been an issue in the Thoothukudi port.
The Thoothukudi VOC port had direct mother vessels to Jebel Ali port once a week, but nowadays, the vessel calls once in 15 days as cargo volume is reduced, the exporters said. However, Cochin and Mumbai — which have weekly services — have become their favourable destination, they pointed out.
One of the major commodities handled at VOC port is coal with the presence of a number of thermal power plants. The volume of coal imported from other states and countries has drastically declined allegedly due to poor allocation of coal.
Also, another sizable quantity of Copper Ore and copper finished goods which accounted for over 2.5 million tonnes through the VOC port has been nullified since 2018 due to the closure of Sterlite Copper resulting in the reduction in the gross volume of cargo handled at the Thoothukudi port, said sources.
When contacted, a leading Container Freight Station (CFS) operator told TNIE that the volume of cargo handling at the Thoothukudi port had declined compared to previous years. “The freight charges fixed by the liners are based on the international market. However, the stakeholders need to review the ongoing issues seriously in order to improve the performance of the port,” he said.
Break up of traffic (2021-2022)
Imports: 24.19 million tonnes
Exports: 9.45 million tonnes
Transshipment: 0.48 million tonnes
Annual performance of VOC port
2016-17: 38.46 million tonnes
2017-18: 36.58 million tonnes
2018-19: 34.34 million tonnes
2019-20: 36.08 million tonnes.
Coal management at VOC port
2016-17: 1.08 crore tonnes
2017-18: 9.8 lakh tonnes
2018-19: 8.6 lakh tonnes
2019-20: 7.19 lakh tonnes
2020-21: 6.59 lakh tonnes
2021-January 2022: 6.27 lakh tonnes