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New master sets friendly course -- Interview with Dr. Jacob Thomas, Chairman, Cochin Port Trust

Sajeev Kumar V.

Dr. Jacob Thomas, who has taken over as Chairman of the Cochin Port Trust, has launched an aggressive marketing drive to step up the port's traffic. He has set up a business development cell to prepare a complete cargo profile for the last three ye ars for Kochi and adjoining ports. He has also initiated a method to identify the core traffic. Dr. Thomas' objective, as he explains, is to turn the Kochi port into a `consumer-friendly marketing organisation'.

Excerpts from the interview.

What will be your priorities in the next five years?

My priority is to have a diversified portfolio of cargoes for the port. The plan is to increase the cargo throughput from the existing 12.8 million tonnes to 15 million tonnes within two years and to 20 million tonnes by 2005. Today, crude and POL produc ts account for 75-80 per cent of the port's total traffic. Again, the crude throughput depends on the requirement of the Kochi Refineries Ltd (KRL).

We must target to raise the share of other items, particularly non-crude liquid bulk such as edible oils. The palmolein traffic has registered a 20 per cent increase this year. We have already succeeded, by persuasion and interaction, in bringing a chemi cal tanker. The first benzene vessel called at the port with a consignment of 4,500 tonnes. We understand that Reliance Industries Ltd is keen to bring benzene in future and the throughput is projected at 30,000 tonnes.

Another priority item is cement. Major manufacturers such as Gujarat Ambuja, L&T and Saurashtra Cements have expressed desire to set up units in the port area. We have modern facilities to handle cement and will strictly maintain ecological standards whi le handling the cargo. We are also in touch with the Tamil Nadu Electricity Board for handling coal for its stations at Salem and Mettur.

We propose to convert 50 acres of land in the south-end reclamation area into a Special Economic Zone with private participation to provide infrastructural facilities. Around 250 acres adjacent to the area will also be developed within a period of five y ears.

Neighbouring ports, too, are equally aggressive in their marketing efforts. How do you propose to take on the competition from them?

The Kochi port's hinterland is rich with diversified agricultural products, which, through proper processing, can be exported. Kerala's agro-based products have considerable potential for exports to the US and Europe. What is crucial is to provide suppor t facilities such as storage space, grading and transportation. These issues will have to be sorted out with the Kerala Government.Another way to increase revenues is by attracting passenger vessels. Last year, 22 foreign cruise vessels called at Kochi p ort. The port will take up with the State Tourism Department the issue of attracting tourists. The recent decision of the Tariff Authority for Major Ports granting a rebate on vessel-related charges to foreign cruise vessels calling at Kochi should attra ct more passenger vessels.

The port also proposes to handle in a big way new cargoes such as cars and wooden logs. Mumbai-based Shahi Shipping Ltd has shown interest in transportation of cars by ship through the Kochi port. The vehicles, manufactured in Chennai and Mumbai, are to be sold in Kerala. The coastal movement will reduce considerably the damage to the vehicles and ensure less congestion on the roads.

What is the status of Vallarpadam Transshipment Project? How do you propose to handle the trade unions opposed to the project?

We have opened the financial bid submitted by the lone bidder -- P&O Ports. We are analysing it. We have to accept that not many reputed terminal operators are keen to take up the project of this magnitude. P&O is familiar with the Indian situation as it is the licencee for the container terminal at JNPT. We hope to place P&O Port's proposal before the Board of Trustees for approval by next month.

The workers are not opposed to the project; they have only expressed concern over the proposed joint venture plan. Their views will be considered before a decision is taken. We have already held one round of discussion with trade unions and the response has been positive. We are not privatising the operations of the existing terminal; we will only team up with a private partner to have a joint venture to attract more container traffic.

The high-cost dredging has been a matter of concern to the port authorities for the past few years. Is there any scope for cutting down on the expenditure?

The high cost of dredging has really been a matter of concern to port authorities. Last year, the port spent around Rs. 40 crores on this. We have initiated discussion with the Chennai-based National Institute of Ocean Technology to explore ways and mean s to cut down the dredging cost to reasonable levels. This is essential for the overall development of the port. If we can reduce this cost, we will be able to spend more on development.

Will KRL's plan to instal a single buoy mooring (SBM) outside the port waters affect the port's viability?

Most certainly. We have lodged a strong protest with KRL as well as the Ministry of Petroleum and Natural Gas. The huge infrastructure created by the port for KRL at an investment of Rs. 100 crores will become infructuous. Crude and POL products account for the bulk of the port's total traffic -- as much as 80 per cent. Once these products are shifted to SBM, the port will have to contend with a meagre 3 million tonnes of traffic -- its survival could be jeopardised.

The port is prepared to create additional infrastructure, deepening the channel or any other proposal which KRL might deem necessary to facilitate its operations. There is a proposal to deepen the channel to a depth of 17.3 metres by 2005 to coincide wit h the expansion of KRL. Once the channel is deepened, KRL will be able to bring Suezmax vessels, thus saving substantially on the per tonne cost of crude transportation. As an alternative, the port has also suggested to provide tank farms in the port are a so that deep water tanking is possible.

When the port is ready to serve its important customer, such as KRL with so many alternative schemes, there is no reason why the proposal for an SBM outside the port waters should be considered at all.