Develop VOC Port as transshipment hub: Stakeholders

MADURAI: The EXIM community relying much on the Thoothukudi based VO Chidambaranar Port, has sought the Union government to consider developing the port as an international transshipment hub at the earliest.

As of now, Colombo Port, which’s largely relied upon by this Thoothukudi seaport, is in a critical stage of not being able to operate their terminal due to shortage of fuel oil and supply of electricity due to foreign exchange drain in Sri Lanka. The current situation directly hits cargo movement to and from India. Hence, it’s time for the Centre to consider development of VOC Port in Thoothukudi to overcome such situation and to strengthen the hands of the Indian exporters and importers by providing the required port infrastructure at Thoothukudi. It will help support the ongoing and future trade for achieving the export target set by the government, JP Joe Villavarayar, president, Tuticorin Port Transport and Equipment Owners Association said on Sunday.

The Colombo Port located closer to the East West international sea route, was equipped with facilities for handling of deep draft container vessels in early 1980s. Consequently, mainline vessels call Colombo Port. Due to lack of deep draft, the VOC Port serves Colombo Port as a feeder port. As such, the Indian Exim cargo became costlier because of transferring from the feeder vessels to mainline vessels at the neighbouring Colombo Port.

Most of the south Indian Ports and Ports on the east coast have become feeder ports to Colombo. Almost 60 per cent of the Indian cargo in containers is transshipped through the hub ports such as Colombo, Singapore, Salala and Jebel Ali, Villavarayar, a representative of Association for Tuticorin Hub Port Development explained.

About Rs 700 crore per annum is incurred as transshipment cost on Indian cargo at Colombo Port, Villavarayar told DT Next.

With the development of Chennai-Kanniyakumari and Madurai-Tuticorin Industrial Corridor and the setting up of various industrial units in the SIPCOT area initiated by the state government, the volume of trade through VOC Port is expected to increase manifold in the coming years. To cope with these developments and to serve the EXIM trade at less cost, suitable infrastructure facilities are needed at the VOC Port.

Outer harbour development

Development of an outer harbour with state-of-the art infrastructure in terms of deep draught, efficiency and capacity is the solution to sustain the present momentum of growth. The much-awaited developments would also help enhance opportunities for further industrialisation, trade and commerce and attract major shipping lines both for gateway and transshipment traffic in containers, Villavarayar added.

According to Michael Motha, former chairman, CII, Thoothukudi, the much awaited outer–harbour development, which could be a boon to the EXIM community, of VOC Port is going to take off at Rs 7,500 crore under the Centre’s ‘Gati Shakti’ programme in the first phase aimed at ensuring hassle free movement of larger cargo vessels. Once the facility is operational, cargo shipping will be cost effective and also end shipping delays. Shipping cost per tonne of cargo would be reduced by 100 USD.

Considering the potential of the Thoothukudi seaport, the Port city has paved avenues for creating an international ‘Furniture Park’ on 1,500 acres in SIPCOT industrial complex and thirty investors have so far shown their expressions of interest. Moreover, Thoothukudi in coming days will host a new ‘Mini Tidel Park’ and ‘Marine Processing unit’ as envisaged by the government. Once these progressive projects are completed, it could be a significant contribution toward Chief Minister MK Stalin’s ambitious target for Tamil Nadu to become a USD one trillion economy by 2030.

T Velsankar, president, Tuticorin Stevedores Association, said the much-awaited facility at VOC Port, which’s one of the thirteen major Indian Ports, would attract cargo shipments from the entire South India.

Reliable sources from VOC Port said several stakeholders had shown expressions of interest for taking up the outer harbour development project and currently, the Port’s entrance channel is being widened.