India’s first trans-shipment hub, the Kochi International Container Trans-shipment Terminal (ICTT), also known as the Vallarpadam Terminal, has recently been under review by the Ministry of Shipping. The evaluation is geared towards understanding the development and potential benefits of this major advancement in India’s shipping industry.
Understanding the Role of Trans-shipment Hub
In essence, a trans-shipment hub operates as an intermediary terminal at a port. Its primary function revolves around handling containers, storing them temporarily before transferring them to other ships which then proceed to their onward destination. This process makes the hub a pivotal switching point for cargo transported by deep-sea vessels along trans-continental trade routes.
Insight into Vallarpadam Terminal
Located on Vallarpadam Island in Kochi, Kerala, the Vallarpadam Terminal is an integral part of the Cochin Port. The construction of this terminal, with a hefty investment of around Rs 3,200 crore, was financed collectively by the government and Dubai Ports World, a Dubai-government-owned entity.
Since its inauguration in February 2011, the terminal has capacitated itself to handle cargo up to one million TEUs (Twenty-foot equivalent units) annually. It boasts of several impressive attributes: proximity to International sea routes, strategic location concerning all Indian feeder ports, nearness to key hinterland markets of India, and sizeable infrastructure designed to manage large ships with potential scaling up as required.
Intentions to Be South Asia’s Leading Trans-shipment Hub
The Vallarpadam Terminal is envisioned to become a leading trans-shipment hub of South Asia. This ambitious goal is achievable thanks to its strategic location and infrastructure capacity.
Expected Benefits From the Trans-shipment Hub
Several significant benefits are anticipated from the successful operation of this trans-shipment hub. Notably, it would reduce India’s current dependency on neighboring hub ports located in Sri Lanka, Dubai, and Malaysia for sending and receiving container cargo. By doing this, it would save both time and cost for exporters and importers, a welcome change for the Indian shipping industry.
Aligned with the Prime Minister’s vision of Atmanirbhar Bharat, the establishment of this hub will ensure Indian cargo trans-ship through an Indian port. This is significant, given the Indian ocean’s importance as one of the most critical maritime transportation links globally.
Boost to Employment Opportunities
Another expected advantage of this hub would be its contribution to generating additional employment opportunities. It’s projected to facilitate the establishment of certain port-based industries along with their allied facilities such as Container Freight Station and Island Container Depots. These developments would undeniably boost Kerala’s local economy.
Source: PIB