Kochi needs 4-5 warehouses/CFSs for upcoming CT at Vallarpadam

WITH the Vallarpadam Trans-shipment Container Terminal scheduled to be in use by April 2010, several private players and government agencies plan to establish warehousing facilities in and around the Indian port city of Kochi amid expectations it will become an international maritime hub.

Leading the pack is a joint venture initiative by two public sector undertakings, Central Warehousing Corporation (CWC) and FACT, to set up a container freight station on land owned by FACT close to the Vallarpadam terminal in the state of Kerala, reports The Hindu Business Line.

It said that based on estimates by sources in the warehousing industry Kochi would need at least four to five warehouses and container freight stations with the box terminal at Vallarpadam nearing completion.

"The investment potential of such a venture is estimated at INR150-200 crore (US$3-4 million). Even though there was a good potential for developing more such facilities in and around Kochi, the non-availability of large tracts of land in a single holding is hindering the involvement of the private sector," the report said.

It noted that a container freight station requires at least 15 acres in the first phase, which some private companies may find difficult to provide, however, several public sector companies in and around Kochi are said to hold surplus land which would be suitable for the development of container freight stations and warehouses.

State-owned Travancore Cochin Chemicals (TCC) is also reported to be in the process of setting up a project through a joint venture. Managing director of the Central Warehousing Corporation (CWC) BB Pattanaik said that the first phase of the facility will be developed on 15 acres of land with a monthly handling capacity of 2,000 TEU.

The facility will have 1,024 square metres for imported cargo and 1,024 square metres for export cargo. Furthermore, it will have 3,048 square metres of open area for storage. Total investment in the project to be built over two phases will be INR80 crore, the report said.

It added that there are also plans to build a multi-storey warehouse-cum-office complex in Ernakualam and a facility at Kannur with a capacity of 5,000 tonnes to cater for textile exports in that region.
 

Source: SchedNet