V. Sajeev Kumar

THE Kochi Port Chairman, Dr Jacob Thomas, has been playing a dynamic role in helping the International Container Transhipment Terminal project at Vallarpadam take off from the design boards. He is pivoting path-breaking development initiatives to make Kochi a global hub port of India in view of its locational advantages on the world maritime map. He has conceived a multi-faceted development proposal under the integrated development plan to meet diverse requirements of the maritime trade. The following are excerpts from an interview.

How soon will the port provide the infrastructure required for the ICTT?

The infrastructure to be provided by the port included deepening and widening of the navigational channel by capital dredging, national highway connectivity and rail connectivity. As per the agreement conditions, the port has to provide these infrastructure facilities to match with the commissioning of the ICTT at Vallarpadam.

By the time the licensee, India Gateway Terminal Pvt Ltd (a subsidiary established by Dubai Ports), shifts operations to Vallarpadam, the infrastructure facilities have to be put in place. The NHAI and the Railways have also assured that the connectivity will be completed before commissioning of the ICTT.

What is the ICTT's cargo potential?

The project envisages the handing over of the existing Rajiv Gandhi Container Terminal (RGCT) to the licensee for the initial four years to facilitate traffic build-up. Meanwhile, the ICTT has to be constructed and commissioned at Vallarpadam by the licensee. The cargo potential of the RGCT and the ICTT, as assessed by our consultants, is around 2,996 million TEUs per annum by the year 2036.

When will you start capital dredging?

As per the bid conditions, the existing RGCT has to be handed to the private operator during the initial period of operation to generate traffic. Further, the draft at the RGCT has to be increased to 12.5 metres within one year. For the establishment and operation of the ICTT, the port has to provide approach channel and harbour basin capable of catering to 8,000-plus-TEU capacity container vessel with 14.5-metre draft.

This involves capital dredging at various stages of implementation of the ICTT project. It is proposed to execute the capital dredging in four phases. The RGCT will be deepened by March 15 in the first stage (2005-06). The second phase (2007-08) involves deepening and widening for phase-I of ICTT. The third phase (2018-19) is the second-stage development of the ICTT and the fourth phase (2021-22) will be the third-stage development of the ICTT.

There is a misconception that the dredging work in the port's mouth will have serious problems in Mattanchery and Puthuvypeen areas. Did the port make any study in this regard?

The port, through the National Institute of Oceanography (NIO), Kochi, carried out a detailed environmental impact study as it is mandatory to obtain the clearance from the Ministry for taking up any major developmental projects, including deepening of channels.

The identified anticipated impacts due to channel deepening are likely to be the changes in the morphology of the Cochin estuary and the resultant changes in tidal flow, flushing rate, salinity variation/intrusion, sedimentation, etc.

However, the NIO's considered view is that these effects are localised, confined to the harbour basin. Because of the special nature of the tidal regime of the port area, the deepening and widening of the channel is not likely to increase the discharge through the harbour entrance. Therefore, there will not be an increase in the strength of the current for increasing sea erosion. As such, the misconception is unfounded.

Will the port give any back-up area for container shack and wharf length?

At the RGCT, which is to be handed over initially to the operator, an additional length of existing berth up to a maximum of 158.5 metres contiguous to the RGCT with back-up area for a width up to 50 metres from the water frontage line will be made available. Further, additional area up to 14 hectares will also be made available for expansion of container stacking area so as to meet traffic requirements.

For the ICTT at Vallarpadam, an area of up to 60 hectares for terminal development and an area up to 10 hectares for berth construction will be provided by the port. An additional area of 10 hectares each will also be made available for the terminal development and for providing railway sidings and associated requirements.

Labour issues, especially private labour, at the RGCT?

The licensee will take over the existing 352 employees of the licensor currently engaged at the RGCT as licensors' employees with employment conditions of each being: a) no less favourable than those applicable to them immediately before the takeover b) that in the event of retrenchment, compensation to such employees will be on the basis that the services have been continuous and have not been interrupted by the takeover. The licensee shall be obliged to engage such employees only for the period that it operates and maintains the RGCT.

Future development plans of the port...

Apart from the ICTT, several projects were proposed under the Integrated Development Plan envisaged under the National Maritime Development Programme. This included LNG terminal, international bunkering terminal, international ship-repair complex, crude oil handling for KRL (Kochi Refineries Ltd), cruise terminal, port-based SEZ, etc., with an investment of Rs 4,800 crore. All these development projects require supporting infrastructure to the tune of Rs 932 crore.

On cruise terminal status...

The port proposes to set up an exclusive cruise terminal with public-private participation at an investment of Rs 55 crore. As many as five firms have submitted the bids on the due date, and three firms have been pre-qualified. The financial bid was opened on January 19 and is under scrutiny.

The number of port calls by cruise vessels at Kochi has been on the rise, and it is necessary that the infrastructure be upgraded to meet the increasing demand. We intend to avail ourselves of financial assistance from the Ministry of Tourism in the venture.

Golf course status...

The port has requested in-principle approval from the Shipping Ministry for a joint venture with The Tourist Resorts Kerala Ltd, a subsidiary of Kerala Tourism Development Corporation, for developing a golf course, PGA standard with 18 holes, at Vallarpadam Island on 86 acres set apart as green belt. The estimated cost of the project is Rs 23 crore.

As the agreement is with the Dubai Ports for the ICTT, the port has requested the Union Government to keep the proposal of the golf course pending till a decision on the allotment of land at the ICTT is finalised.

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