CHALLENGES:

• Price and quality of service are two major determinants of superior performance in container
transportation. A vessel pays USD 80,000 at ICTT as vessel-related charges, similar service at
Colombo (Sri Lanka) costs not more than USD 15,000.

• Draft Depth: Though ICTT has attained 14.5 meter Draft in 2015, the fact remains that its
competitor has 17 meters Draft.
• Higher Terminal Handling Charges (THC) and other charges at ICTT:
The existing Terminal Handling Charge (THC) is quite high at Cochin compared to other major
ports of India.
• Another problem faced by exporters at ICTT is the delays in getting various documents relating to
incentives.

• Transportation: There is about 15 km distance between ICTT and container yard. It will take more
time to transport containers to reach ICTT from the yard. At present the exporters have to use the
Ro-Ro service etc. for this purpose and this will incur more time and expense.

• Problems associated with the services provided by the Steamer Agents, C& F (Clearing &
Forwarding) Agents, etc. as well as the procedural and other delays Customs clearance.

• The existing Cabotage Law is often a discouragement, though some relaxations were allowed by
the Government in 2012. This situation diverts many mother vessels from ICTT.

• Commissioning of another transhipment terminal at Vizhinjam (popularly called as Vizhinjam Port

or Vizhinjam Terminal) is expected to be a big threat to ICTT. As Vizhinjam Terminal is in Kerala
itself and is located at the southern part of the state. The unique status of ICTT as the only
transhipment terminal is going to be lost in the near future as Vizhinjam Terminal becomes
operational.
FINANCING FOR THE PROJECT
• The total cost of the project is estimated at 3200 crore.

• The Dubai Port World India invested about 1600 crore rupees for the first phase of Vallarpadam
Container Transshipment Terminal project. An equal amount was invested by central government
to develop road and rail transportation facilities to Vallarpadam Container Transshipment
Terminal.

• As per BOT(built-operate-transfer) policy the Vallarpadam Container Transshipment Terminal will

be operated by Dubai Port World India for 30 years.

• After which the control will come back to the Cochin Port Trust. One third of total revenue will be
given to Kochi Port Trust.

• All the expenses of Vallarpadam Container Transshipment Terminal is to be met by Dubai Port
World India from the remaining revenue