KOCHI PORT - A PROFILE

3.1 HISTORY OF THE PORT

Kochi port is a natural port. The modern port of Cochin was developed

during the period 1920 – 1940 due to the untiring efforts of Sir Robert Bristow.

Earlier the ships were berthed offshore with cargo handling and unloading being

done using lighters. The ships were exposed to all violent forces of the open sea.

Sir Robert Bristow was a visionary who foresaw the port, which would take the

ships alongside the berths. By 1940 he had transformed Kochi Port as safest

harbour in the peninsula.

By 1930 -31 the port was formally opened for vessels up to 30` draught.

Kochi was given the status of major port in the year 1936. The administration of

the port got vested in a Board of Trustees on 29th February 1964 under the Major

Port Trust Act, 1963. The members of the Trust comprises of Chairman, Deputy

Chairman and 17 Trustees.

LOCATION OF KOCHI PORT

LOCATION MAP OF KOCHI PORT

The port of Cochin is located on the Willingdon Island at latitude 9 58`

North and longitude 76 14` East on the South West coast of India about 930 km

south of Bombay and 320 km north of Kanyakumari.

The entrance of port is through the Cochin Gut between the peninsular

headland Vypeen and Fort Cochin. The port limits extend up to the entire

backwaters and the connecting creeks and channels.

The approach channel up to the Cochin Gut is about 10 km long with a

designed width of 200M and maintained dredged depth of 13.8M from the Gut the

channel divides into Mattancherry channel and Ernakulam Channel, leading to

west and east of willing don Island.

FEATURES OF KOCHI PORT

Kochi port is a natural all weather port

It has deep drafter alongside berth with modern cargo handling equipment

The port has adequate warehousing capacity

It is well linked to the main centers of the country by road, rail and air

It offers attractive tariff structure

It is awarded ISO 9001 - 2000

It is free from pilferage

It is a free port from congestion

It has high labour productivity and cost effectiveness

ISPS complaint with effect form 30/06/2004

SERVICES OFFERED TO CUSTOMERS BY KOCHI PORT

It provides personalized service to customers

It provides faster documentation and administration of services backed up by a

fully computerized network

Single window clearance for exports

Perceiving the principles of sustainable development

Constantly upgrading the competence, awareness, skills and motivation of the

port personnel to bring about continuous improvement in the physical

efficiency parameters

Ensuring security and safety of life, equipment and cargo

Conforming to international standards and offering services at competitive rates

It offers attractive tariff structure

FACILITIES AT KOCHI PORT

Well Equipped Container Terminal with Container Freight Station (CFS)

16 berths including 3 oil jetties

1 dry dock

long side draft of 9014 meters to 12 meters

Vast Estate covering 692.29n acres and 1940 acres including land at

Puthuypeen, Vallarpadam and south end reclamation area.

CONTAINER HANDLING FACILITIES:

Rajiv Gandhi container terminal (RGCT) has a length of 414 meters and has

a draft of 10.70 meters.

Table 3.1

CONTAINER HANDLING FACILITIES AT KOCHI PORT

Equipment available for container

handling

No. of Equipments

Transfer Cranes (35.5 tons capacity) 4+1 on lease

Gantry Cranes (40 tons capacity) 4

Heavy Duty Top Lift Trucks (25 to 35 tons

capacity for lifting loaded containers)

4

Light Duty Top Lift Trucks (5 tons capacity

for lifting empty containers)

2

Heavy Duty Mobile Cranes 3

Reach Stackers 4

Source: Kochi port trust report

STORAGE FACILITIES:

Storage facilities consist of 59,000 sq. meters of covered area and 10,000 sq.

meters of open area.

Table 3.2

STORAGE FACILITIES AT KOCHI PORT

STORAGE FACILITIES TOTAL SHEDS AREA AVAILABLE (sq

meters)Mattanchery Wharf 13 36690Ernakulam Wharf 12 23032Container Freight station 1 10000

Source: Kochi port trust report

BERTHING FACILITIES:

Breathing facilities consists of 16 berths including 3 oil jetties

Table 3.3

BERTHING FACILITIES AT KOCHI PORT

Fertilizer Berth Accommodates ships of maximum 207- meters. In length drawing a draft of 10.7 meters. And having displacement of maximum 86,000 tons.

Coal Berths Accommodates ships of maximum 170- meters. In length

Boat Train Pier Accommodates ships of maximum. 185- Meters. In length

Cochin Oil Terminal Accommodates ships of length 231- meters. With a displacement tonnage of 115000loaded to 11.7 meters. Draft.

North Tanker Berths Accommodates ships of length 213- meters. With a displacement tonnage of 30000 loaded to 9.14 meters. Draft

Source: Kochi port trust report

3.6 IMPORTANCE OF THE KOCHI PORT

As said earlier, the location advantage puts Kochi Port in a very

commanding position to service the massive East West Ocean trade. The port lies

in a strategic position in the international Shipping Highway. Cochin lies near to

the main waterway to Singapore and West Asia. Cochin is the nearest port in the

shipping highway to Europe, Australia and Japan.

Certain infrastructure up gradation as per strategic plans if envisaged the

Kochi Port would be able to compete efficiently with the Colombo ort and

Singapore port.

The port plays an undeniable role in the overall development of the economy

of the State of Kerala. For Kerala, the port and its international Container

Transshipment Terminal is the central point of many important project envisaged.

The Cochin Refineries Development The Goshree Bridges Project The Petronet’s Lng Project The Siasil Electricity Project

All these projects are dependent on the central point of the international

Container Transshipment Terminal.

At present, all the goods from the Indian ports like Mumbai, Goa, Paradip,

Tuticorin to Colombo and Singapore are first sent to Colombo and from there it is

transshipped to its respective destinations. And the goods, which are to be brought

into these ports, are also unloaded at ports, are also unloaded at the Colombo or

Singapore Port by Mother Vessels. Once the VTT is ready all the transshipment

from West coast of India will be diverted to Kochi Port.

3.7 RECENT EFFICIENCY RECORDS OF KOCHI PORT

Kochi port achieved higher levels of productivity on the bulk and break-bulk

cargo handling front during the second fortnight of August 2004 when it achieved

operational levels of 9,527 MT steel plates and scrap iron carried by the vessels

M.V. STAR FUJI and M.V BROTHERS respectively.

On the vessel M.V STAR FUJI, productivity levels of 1,738 MT in a shift

and 3,835 MT in a day were achieved, thus setting new records. On an average a

discharge rate of 1,903 MT per day was achieved which is an all time record.

Similarly, the vessel M.V BROTHERS discharged 1,868 MT of scrap iron

per shift and 4,860 MT in a day, which is a new record in productivity. A total of

26,083 MT of scrap iron was discharged in seven (7) days, achieving a record

average of 3,726 MT per day.

The port has been striving to provide better level of services to its customers

and is constantly improving its systems for enhancing customer satisfaction.

Improved methods and systems for handling cargo like steel plates, fertilizer, copra

cake, raw cashew nuts, soda ash etc., are being contemplated.

Due to concerted efforts of Port Management and Port Users, Kochi Port

Trust (KOPT) has been able to handle an all-time record quantum of cargo of

135.72 lakh MT in 2003-04, which included a record of 1.70lakhs TEUs of

container cargo. Volumes have touched a new high during the last week of August

2004. During the period April-August of 2004-2005, KOPT gas handled 58.80

lakh MT achieving a growth of over 6 lakh MT or 11% as compared to the

corresponding period during 2003-2004.

3.8 PORT MODERNIZATION PROGRAMMERS UNDERTAKEN

The most important schemes included in the 10th plan at an outlay of Rs. 300

crores are as follows

Replacement/ Revamping of 2 Nos. RTG cranes for container handling

Revamping of fire fighting facilities at Puthuvypeen

Procurement of additional container handling facilities

Installation of 1 No. low profile 10 ton cargo handling gantry cranes

Installation of Vessel Traffic Management System

Inshore oil terminal / crude handling facilities

Setting up on special economic zone

Development of south end reclamation area as commercial area at Southern

tip

Replacement of Mattanchery wharf

3.9 PORT EXPANSION PROJECTS ENVISAGED

The expansion proposals under the tenth plan are 5 main projects apart from

the Vallarpadam container transshipment hub as a joint venture, the port has

already grounded as part of its 9th plan expansion plan works concerning

International bunkering terminal at Kochi port

International passenger terminal at Kochi Port

LNG terminal at Puthuvypeen

Floating pock and ship repairs facilities at Kochi port

The capacity of the port is expected to double once these projects are

completed.

INTERNATIONAL BUNKERING TERMINAL AT KOCHI PORT

The Kochi port trust plans to set up an international Bunkering facility off

Cochin, 10-15 km into the sea as a special economic zone. The project is in the

consultation stage and it would not be too long before the private partner for the

project is finalized. The bunkering facility was part of the Port’s to diversify into

new areas.

The intention is to set up the terminal initially at one of the existing wharves

of the port on West Island, and to shift the facilities to an exclusive bunkering

terminal at Puthuvypeen, as the requirement picks up. The expected investment by

the Operator for the initial and final phases of development is about Rs. 20 Crores

and Rs. 150 crores respectively.

The prospects of an international class bunkering service off Cochin have

brightened with most of the shippers losing interest in the facilities offered at

Colombo Port. A variety of factors, including the ethnic disturbances in the island

country, are discouraging ships to turn away from the bunkering facilities at

Colombo. It is this trend, which Kochi port intends to capitalize.

INTERNATIONAL PASSENGER TERMINAL AT KOCHI PORT

Recently, there has been an increasing trend in the passenger traffic through

Kochi port. There is no dedicated passenger berth at the port and the passenger

vessels now calling at the port are berthed in the vacant quay/jetty with only

temporary facilities for meeting the passenger’s requirements. Considering the

increase in number of passenger vessels calling at the port and with a view to boost

up tourism building in one of the existing transit sheds at the Ernakulam wharf by

suitably modifying it and providing the

Required amenities. The berthing facilities will have to continue as such for the

time being.

PORT FACILITIES AT PUTHUVYPEEN

Kochi port has about 250 hectares of accreted virgin land at the northern side

of entrance channel called Puthuvypeen. This was seen to be the ideal location for

establishing LNG and LPG facilities on account of safety requirement.

PETRONET LNG Ltd. A joint Venture Company promoted by GAIL has already

been formed for setting up an LNG terminal at this location to meet the

requirement of natural gas for consumers in and around Cochin. Port Trust has

allotted 50 hectares of land on lease for 30 years for this purpose. The Terminal

and other facilities with a capacity of 205 MMT are expected to be ready for

operation by the year 2005 as per the indications of PETRONET LNG Ltd.

FLOATING DOCK AND SHIP REPAIR FACILITIES AT KOCHI PORT

Kochi port has the potential to develop to develop a floating dock for ship

repair facilities in the Cochin backwaters. The port trust has about 0.3 hectares of

land area with 75M long water frontages in Fort Cochin side. This area has been

considered suitable for establishing a floating dock and the allied facilities for ship

repair.

INTERNATIONAL CONTAINER TRANSSHIPMENT TERMINAL AT

VALLARPADAM

The international transshipment terminal at Vallarpadam is an ambitious

project, proposed to be started by the Kochi port at a cost of Rs. 2118 Crores. The

Kochi port trust proposed the first feasibility report for developing a Greenfield

port at Vallarpadam on an island opposite Kochi way back in 1991. In 2002 when

Kochi port trust managed to get a request for bids. The idea was to develop the

international container transshipment terminal as a private partnership; the private

operator would first modernize the existing Rajiv Gandhi Container Terminal at

the Kochi port in the first phase. In the Rs. 2118 Crores second phase, the operator

would develop the ICTT, maintain it for a concession period of 30 year and then

transfer it to the government. Dubai port international (DPI) won the contract.

It has to pay Rs.40 Crores for the equipment an annual licensing fee of

Rs.9.6 crores and one third of the gross revenues form the operation.

Conceptual planning of the facility has been carried keeping in mind the

requirements of a modern container terminal cum load centre. The design criteria

adopted, stipulated the\at the facility should not only be able to accommodate

current mainline vessels, but also future larger mainline vessels as well.

Vallarpadam island, located to the north of the main shipping channel to Kochi

port’s facilities of approximately 1500 meters facing the shipping channel.

Additionally, feeder berths can be accommodated along the eastern or western

waterfront. The first stage of development would include two mainline and two

feeder berths, with four and two quay cranes respectively. Within the current

planning horizon, the ultimate stage of development would take place in 2015, and

would comprise of four mainline and three feeder berths, equipped with seven and

five quay cranes respectively.

3.9.1 Importance of Vallarpadam Transshipment Terminal

The importance of this major project lies in the fact that, the Kochi Port will

handle more than 80% of India’s transshipment traffic in the future, which is

presently handled by the Colombo port. At present, all the goods from the Indian

ports like Mumbai, Goa, Paradip, Tuticorin etc., are first sent to Colombo and from

there it is transshipped to its respective destinations. And the goods, which are to

be brought in to these ports, are also unloaded at the Colombo port by mother

vessels. In short, the port of Colombo can be said as our main collection point that

translated into a business of Rs. 270 crores. Once the VTT becomes operational,

Colombo as a hub port will lose its attraction as large volumes of imports and

exports, currently transshipped at Colombo, would get diverted to Kochi.

3.9.2 Opportunities for Vallarpadam Transshipment Terminal

It will act as a central point for various projects. The Cochin refineries

projects, the Goshree Bridges project, Petronet’s LNG project at Puthuvypeen,

Siasil Electricity project - all these projects are dependent on the central point of

the international container transshipment terminal. All these show the need for

speedy implementation of the VTT project. Besides, it will be the first major port

project to be developed through the recently approved joint venture route where

the Kochi Port Trust will hold 26% equity, thereby partaking in the management

control of the project operating company.

It will turn out as a logistic hub for the entire south west Asia. The ratio

between container traffic handled at port located on the west coast of India, and

those located on the east coast, is currently 2:1 in favor of ports located on the west

coast, which implies that these ports handle nearly two – thirds of all India

container traffic. Hence, Cochin possesses a competitive advantage in terms of

location on the west cost of India. Furthermore, the advent of the Konkan Railway,

which runs along the western coastline from Mumbai to Trivandrum market

capture and attracting west coast traffic, purely of its geographical connecting

Cochin, will provided better overland connections and access to a wider hinterland.

Hence, a container transshipment terminal at Vallarpadam will not only be able to

serve as a shipping load centre, but as a continental one as well. The ability to

access the market overland, as well as by sea routs, is a distinct advantage,

particularly given the time and cost for traditional movement which involves

multiple handling at various stages. A direct overland rain to port to mainland

vessel move would constitute significant savings in both time and coasts.

There will be reduction in transshipment cost. The Vallarpadam

Transshipment Terminal, implemented at the earliest, would be able to take on the

competition form Colombo as a Hub Port. The project involves the creation of

India’s first transshipment centre at Vallarpadam Island, planned to reduce

countries dependence on overseas ports like Singapore, Dubai, Colombom, Salalah

for transshipment of cargo, which robs Indian goods of its competitive edge. These

shippers will benefit most, as their transshipment cost will drop substantially.

Other reasons are also cited for an early clearance of the VTT project. It feared that

the Kochi port might start losing even its present volume of container traffic,

unless handling facilities are stepped up through the only implementation of the

VTT project. Second, the Kochi post is facing utmost competition form several

ports in the region. In tuticorin, the port of Singapore authority, in partnership with

the port authorities, is active in container operations, while in Collachel port, a

Malaysian firm has just started contracting containers by offering big waivers in

port changes.

It will attain competitive advantage Colombo Port. 4% of the total container

traffic currently handled by the Colombo port is transshipment traffic from India.

Last year about 750, 000 TEUs of cargo were loaded on feeder vessels headed for

transshipment port of Colombo, where they were reloaded. For Colombo, this is

translated into business of about Rs.270 Crores, when the hub port at vallarpadam

comes up to the international liner routs that Colombo itself feeds, VTT can tack

away more then its share of business from the Sri Lanka port.

It will attract exporters of the nearby states. A hub in the country will save

exporters up 3-4 days. It will not only help in saving time for all, but also will

especially benefit exporters from Tirupur, Madurai, Karur and Bangalore. For

India bound cargo too traders would save a lot by eliminating one whole step in the

transportation process will posses increased capacity and efficiency that of

unloading at Colombo, reloading on feeder vessels and then carting the cargo to an

Indian port.

3.9.3 Threats for Vallarpadam Transshipment Terminal

The biggest threat come from home while Vallarpadam IS being planned,

the State Govt. of Kerala is working on another hub port just 30 km south of

Kochi, at Vizhinjam. There just isn’t enough scope for 2 hub ports in the area.

Port authorities feels the mainline vessels will continue to call at other ports

like Colombo and Salalah, since the RGCT Has a draught (depth) of only 12.5

meter. Hence its imperative that ICTT be developed before traffic goes up at

RGCT.

DPI would benefit from the license if he artificially keeps his volume below

400000 TEUs for the next eight years. DPI will be able to reap hand some profits

from operating the existing terminal. He can get away without developing the

expensive terminal at all.

3.10 PROBLEM FACED BY KOCHI PORT

Kerala is the largest consumer market in the country by having the

maximum number of middle class people in the country. It is the first and only

state in the country to have a 100% literacy rate. It is also only state in the country

to ban ‘Bandh’ and is also one of the few states in the country where there is a ban

on smoking in public places. The state is a role model for many other states in the

country to copy the developments made. In many a case, the state average is very

much better than the national average and even than that in some other developed

countries of the world, like in the cases of progress in the medical field, literacy

rate, social security, highlife expectancy etc. All this has forced even many of the

critics of the state to admire of the ‘Kerala Model Development’, as it is popularly

known.

But even after all this, the state does not get its share of recognition in many

an important area. Kerala is the most neglected state in the country as far as

infrastructure is concerned. The reason behind this is lack of dedication and will

from the state and the negligence of the State by all the successive governments in

the actual development in the state.

The negligence shown to Kerala con is clearly understood from the

following facts. In the case of Tailaways, Kerala is the only state in the country

without a Railway Zone even though it is the state that gives the maximum revenue

to Southern Railway. This has lead to undue delay in the cargo movement to and

from the port.

The former Prime Minister of India Shri Atal Bihari Vajpayee had some

time back announced an ambitious project called ‘North – South, East – West

Coerridor’, linking the Northern port of the country with sough and the Eastern

part with the west. In the initial plan, the North – South Corridor was to pass

through Kerala but due to immense pressures from all the political parties from

Tamil Nadu, the plan was later changed to pass through Tamil Nadu. This was one

of the major losses to the Kochi Port. If this projected would have been

implemented Kochi Port would have emerged as major port of South West India.

All these shows that each and every major project mooted for the state had

been caught up in undue delays and controversies or have been diversified to other

states due to nothing but pure political reasons. Kochi Port is also not free from

such problems. In fact, it was the major loser in the political and bureaucratic

battles. The Port Trust had mooted many major projects in the past, but all were

rejected or delayed by vested interests without keeping in mind the best interests of

the nation. This includes projects like the Super Tanker Berth conceived in the

Early 70’s, Single Buoy Mooring Project has done and presently the

Vallarpadam international Container Transshipment Terminal Project is on

process.

The full name of the Super Tanker Berth Project was the Super Tanker Oil

Terminal Project. The mega project was conceived way back in the early 1970’s

when Mr. P.S Padmanabhan was the Port Trust Chairman and Mr. P.S. Menon, the

Chief Engineer. It the project had taken off as planned and the required

infrastructure was provided from time to time, today Cochin would have been in

the position of Dubai, Singapore and Colombo. The project did not materialize at

the time due to lack of political motivating and will power from Kerala. The

rejection of the project was made easy due to the facts that there was opposition

from with the port itself. The project came to a premature end.

The next important project envisaged but not materialized at the Kochi Port

was the Single Buoy Mooring Facility proposed by the Cochin Refineries Limited.

The Cochin Refineries, which is on a large-scale growth sphere, had plans to build

single buoy mooring in the outer sea and pump oil form huge takers which berths

there. The reason quoted by the Cochin Refineries Limited for constructing the

same was that currently tankers of such huge size couldn’t berth at the present

berths. But this project was also put to premature end.

The next major project mooted by the Kochi Port Trust was the Vallarpadam

international Container Transshipment Project. The prestigious project also did not

cue without its share of delays and problems. The first feasibility report of the

project was prepared by Dr. P.V Chandramohan and Captain Vargheese Kuruvila

way back in 1985 itself when Dr. Babu Paul was the port Trust Chairman. The

importance of the project was recognized in 1990. the National Shipping Board

also agreed to the gains, which can be achieved, from the project but for some

reasons still unknown, it was not taken up for implementation. In 1998, a fresh

feasibility report was prepared when Mr. C. Babu Rajeev become the Chairman of

the Port Trust. Only in 2002 the Kochi Port Trust managed to get a request for bids

Even form the initial stages itself, there were attempts by other ports

including the port of Tuticorin ot snatch away this major project and here it is to be

remembered that all the political parties from Tamil Nadu had strongly supported

Tuticorin Port’s demand for allotting the project to them. Such a political

consensus was never forthcoming from the Kerala counterparts for Kochi Port’s

demands. But thanks to the location advantage study for a container transshipment

terminal in the South undertaken by the Dutch consultant Frederick R Harris,

Cochin was found to be a more suitable location than Tuticorin.

All these points clearly shows that the current delay in implementing the

most prestigious project ever envisaged in the country is due to nothing else but the

fact that there are some people with vested power and necessary influence needed

but do not take initiative to develop Kochi Port, the Kerala Government also

doesn’t seem to provide adequate assistance to Kochi Port.

There were other major problems also at Kochi Port. In the early periods,

Kochi Port had a very bad reputation among the trading community. Lack of

proper vision and policies, political and regional narrow-mindedness, trade union

laws in force in the state, regular strikes, high port tariffs and high turn around time

– all had its negative impact on the image of Kochi Port. But thanks to effective

management control measures and better port facilities coupled with a disciplined

work force nowadays, Kochi Port is slowly regaining most of the clients it had lost

to other ports and the port also had been some what successful in clearing the bad

image it had during the early periods from the minds of people.