Dependance on foreign ports for transshipment of containers destined for India will cease once the D. P. World’s Container Terminal in Cochin, South India being designed as a transshipment hub gets commissioned by June this year.
Once the D. P. World’s International Transshipment Container Terminal (ICTT) at Vallarpadam, Cochin gets commissioned by June 2010 the container trade in South Asia is expected to experience a paradigm shift. The D. P. World’s transshipment hub is expected to reduce India’s dependence on foreign ports where the containers are presently get transshiped.
Being built at an estimated cost of US$500 million ICTT becomes the largest single operator container terminal currently planned in India and the first in the country to operate in a special economic zone. The development of this project was taken up by DP World after it was granted a 38-year concession for the exclusive operation and management of the site, a key centre aimed at reducing India’s dependence on foreign ports to handle transshipment.
Senior Vice President & Managing Director of D. P. World Sub Continent, Capt Anil Singh said, “Over two million TEUs containers of Indian cargo destined for Western India gets carried to Jebel Ali, Colombo and Salalah for handling transshipment. All this transshipment will begin to take place at ICTT once the terminal becomes operational in in another three months’ time.”
How will the shift take place once the new facility is in place? Capt Singh points out that D. P. World is trying to promote commerce by cost effective connectivity at Vallarpadam. There will be better road and sea connectivity, flexibility of network to attract international customers. “We are trying to facilitate and attract mega international shipping lines such as Maersk, MSC, CMA CGM, etc by providing an international accepted regulatory framework, a flexible shipping network and a hub & spoke system,” informed Capt Singh.
When asked if the container handling and demurrage charges will be less than what is prevailing in other transshipment ports, Capt Singh informed that ‘D. P. World is competing both in an international market and domestic market. We will provide all facilities necessary to attract customers. We can provide better handling rates which is under our control but it may not be so for vessel related charges which is beyond our scope.’
The initial capacity of 1 million TEUs is expected to be complete in the first phase after which ICTT will be expanded to have a 1.8 km of quay and at least 16 Quay Cranes capable of handling the largest vessels afloat, with associated yard-handling equipment and a capacity of 3 million TEUs.