India's transshipment terminal remains a dream

Thiruvananthapuram, Jul 13: The fate of Indian's first deep sea transshipment container terminal at Vizhinjam, near here, hangs in balance as the Centre is yet to give security clearance to the project even as the bid validity of the consortium of three companies chosen for implementing the project ends on July 15.

The bid validity which expired in April this year, was extended till July 15. It could be extended again as the consortium comprising two Chinese firms and an Indian compnay were willing to proceed with the project, a highly-placed official told sources.

It was not a matter of extending the bid validity but making the first transshipment terminal a reality, the official said.

''There is much dragging about in implementing the proposed Rs 4,200 crore Vizhinjam Project which was conceived in 1996. If the bid validity is again extended, it means more delays and disruption in project schedule,'' he said.

However, once the green signal was given, work would begin in six months.

The delay in securing clearance was reportedly due to the presence of two Chinese firms, Kaidi Electric Company and the state-owned China Harbour Engineering Company. The two companies along with the Mumbai-based Zoom Developers had won the bid.

Though a proposal for the terminal was submitted to the Centre in January, the state government had not received any information on the reasons for the delay in clearance.

The official said if the government felt the security issue was a matter of great concern, then all aspects should be looked into and decision taken.

''Either we should be asked to cancel the bid or call for new ones. But the Centre is silent,'' he said.

If new bids were called for, there was a possibility of getting more players in the wake of the consolidation taking place in the container trade, he said.

''The container trade is growing and new players are coming up.

The chances of getting new players cannot be ruled out. Moreover, Vizhinjam has its own advantages than other ports in the country,'' he added.

However, he pointed out Indian companies alone would not be able to take up the project as they did not have the expertise and experience in handling port trade, especially along transshipment terminals.

Moreover, the container business involved major trade liners, shipping lines and shipping companies and opening a transshipment terminal alone would not bring in business.

The project could become successful only if there was a tie-up with some foreign company which had the requsite expertise and experience in bringing trade to the port.

The Kerala Government had time and again stressed its priority on setting up the deep sea transshipment container terminal. The Left Democratic Front Government, in its maiden budget, had initially set apart Rs ten crore for the project. Meanwhile, doubts had also been raised on viability of Vizhinjam project with the neighbouring Tamil Nadu going ahead with developing Colachel Port, about 100 km from Vizhinjam, into a transshipment port.

However, the official maintained there was no need for any apprehension.The development of a port would only expand the business of other ports. Besides there was enough transshipment work for all the ports in the country.

Vizhinjam with all its advantages should be given top priority as it could save valuable foreign exchange to the tune of Rs 1,000 crore every year as currently containers coming to the country were being offloaded at either at Dubai or Colombo and the consignment taken in small tankers to India, he said.

Though Mundra Port in Gujarat had a deeper draft, Vizhinjam enjoyed the added advantage of being closer to the international shipping route.

One of the features of Vizhinjam was it was a bay with a natural depth of about 23 metre within one nautical mile from the shore and could accommodate any super tanker in the world.

Besides, the international shipping route connecting the Persian Gulf and the Far East was only ten nautical miles away from the port. Another advantage of Vizhinjam was its location which was free from any off-shore dangers and cyclonic disturbances. Also, the deep waters at the site enhanced its suitability as it would require no dredging for deepening.

Compared to Vizhinjam, developing Colachel Port would be more expensive as it did not have the added features of Vizhinjam.

Though Colachel was also situated near the international shipping route, it did not have the natural berth depth as in Vizhinjam.

It should have to be built far off in the seas to get the required berth depth. Moreover, as the sea bed was rocky, blasting was needed burdening the exchequer further.

Even if the berth was developed, continuous dredging was needed unlike Vizhinjam where minimal dredging would do.

Vizhinjam also enjoyed proximity to Thiruvananthapuram, the state capital. While Colachel was far away from Chennai, the Tamil Nadu capital.

''We are not against developing other ports. It can only add to the business of other ports. But the importance of Vizhinjam cannot be ignored,'' the official said.

UNI