Vallarpadam not to get cabotage relief for less business

Kochi: The Union Shipping Ministry has indicated that the International Container Transshipment Terminal at Vallarpadam in Kochi will not be given any special consideration in the relaxation of cabotage rules. Union Shipping secretary Rajeev Kumar on Saturday said in Mumbai that Vallarpadam Terminal will not get another relaxation unless it attains 50 per cent transshipments.

As per the latest data only 42 per cent of the containers handled by the terminal qualify for transshipment status. A new order issued by the shipping ministry on March 7 has made it mandatory that a container port seeking cabotage relaxation for transshipment would have to achieve transshipment of 50 per cent or more of the EXIM and empty cargo handled in one year.

The Cochin Chamber of Commerce and Industry (CCCI) said it will be tough for the Port to achieve 50 percent transshipment. CCCI president C. S. Kartha pointed out that if the Port is unable to transship at least 50 per cent of the containers handled in a year, it would result in revocation of the said relaxation. The Port whose relaxation is revoked shall not be considered for cabotage relaxation for next three years. "This makes the Chamber even more concerned as we feel that attaining the 50 percent transshipment target is quite impractical under the present circumstances. Hence, we urge the Centre to revisit this clause at the earliest," Mr Kartha said.

Mr Kartha pointed out that the container handling by Vallarpadam has shown significant improvement in the past six months. He has also urged the India Gateway Terminal Ltd, the operator of Vallarpadam Terminal, to lower its terminal handling charges (THC) particularly for transshipment containers. "This would help the terminal stay competitive with its neighbouring ports and will also attract more transshipment business which presently is being handled by Colombo," Mr Kartha said.