Vallarpadam gets underway

 The container hub at Vallarpadam, which will be inaugurated today by Prime Minister Manmohan Singh, is being heralded as a money-saver for India’s businesses.


Cochin Port Trust (CPT) chairman N Ramachandran explained to reporters that the region’s previous alternatives had been expensive, as Indian containers had, up till now, to rely on transhipment via Colombo, Salalah or Singapore.


The US$710m facility, "would bring down the cost of freight of a container by US$300" and further reduce transhipment time by almost 10 days said Mr Ramachandran, according to the Hindustan Times.


Constructed on a BOT basis by DP World, the cargo income will go to the operator, while CPT will gain from the vessel related dues and has been guaranteed around one third of the gross revenue.


However, it seems at least one extra may be creeping in as the move to put an external body in charge of security, short-circuiting the arrangement with DP World, looks like adding a further levy.


Despite this, some processes have been smoothed, as the launch has been preceded by the relaxation of cabotage law for container ships by the Indian government. Under India’s protective cabotage regulations, movement of coastal trade has up till now been reserved for Indian flag-bearing vessels.
(Source:http://www.portstrategy.com)