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The Kochi Port’s bid to get private investors to develop a bulk cargo terminal has failed as the regulator-determined tariff is said to be uneconomical.
The port had proposed to develop the terminal exclusively to handle coal and fertiliser at the existing berths at Ernakulam wharf, which were underutilised following the shifting of container terminal operations to Vallarpadam.
Though five firms had responded initially, none of them finally put in their bids as the rates fixed by TAMP for coal handling was said to be too low.
Officials associated with the project said that the rates fixed by TAMP at Kochi are at Rs 106.24 a tonne while in Vizag, the rate was Rs 158.98. The rate at Mormugao Port is Rs 183 and the rates in the two terminals of Tuticorin were at Rs 135. 32 per tonne and Rs 113.72, respectively.
The rates fixed for Kochi are too low and it would be difficult to attract potential bidders for the project, the officials said.
The port management now proposes to increase the draft at these berths to 14.5 metres so that the port can attract larger vessels, which would make the port more economical for users.
The development of a deep berth to handle coal and fertiliser with proper rail connectivity will help units not only in Kerala but also in western Tamil Nadu.
The port is already doing dredging at Vallarpadam to create a draft of 14.5 metres. This work can be extended to Ernakulam Wharf and additional investment would be only about Rs 25 crore.
“Once it is developed, Kochi will certainly emerge as the only major port with deep drafted berths to handle coal”, said the officials.
BOT basis
The consultants, who prepared the feasibility report, suggested taking up the project on a BOT basis at an estimated cost of Rs 250 crore.
It recommended developing a mechanised general cargo terminal with a total optimal capacity of 8.72 MTPA comprising a coal handling facility of 8.3 MTPA capacity and a finished fertiliser handling facility of 0.42 MTPA capacity.
> sajeevkumar.v@thehindu.co.in
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