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Kochi port sees cargo diversion from Tuticorin
POSTED: 9:01 a.m. EDT, July 27,2007

Kochi port is likely to be benefited by cargo diversion from Tuticorin following the decision of PSA Terminal to restrict its operation in the container terminal there.

There is every possibility of a cargo diversion from Tuticorin to Kochi and we are preparing ourselves to grab the opportunity arising out of it,” a senior official at the DP World, which operates the container terminal in Kochi told Business Line.

To exploit the situation, he said the DP World has initiated measures to woo cargo by organizing trade meets at the hinterland centers of Karur, Coimbatore and Tirupur of late. “We are all aware of the situation at Tuticorin and have taken steps to enhance our visibility in the market,” he said.

Restricting operations

It may be recalled that the PSA Terminal had taken a decision to restrict its operations to handle only three lakh teus per annum with effect from July 1 in protest against the TAMP order on reducing handling rates.

The DP World official said that they had already started discussion with the shipping lines with regard to spill over cargo from Tuticorin to Kochi. Already there is a movement of cargo diversion to Kochi and a clear picture will emerge within a couple of weeks. Many of the leading shipping lines have started accepting bookings to West African ports either through Chennai or Kochi and they have started enquiring about the facilities offered at Kochi, he added. The company has taken steps to enhance market coverage, shipping line discussions etc. in its efforts to attract cargo. Moreover, the introduction of 24x7 work hours with hot seat exchange system in Kochi will be an added advantage to get a sizeable portion of cargo from Tuticorin, he said.

Benefits

However, sources in the shipping fraternity said that as the shippers in Tuticorin had enjoyed various benefits while carrying out their operations, the terminal operator here should also extend the same benefits for the diverted cargo. Citing an instance, the sources pointed out that there is no cut off for export containers at PSA Terminal and they are not even collecting any additional charges for the late arrival containers.

Besides, the vessel operators should also take steps to increase the tonnage to accommodate the diverted cargo from Tuticorin. Currently, Kochi is facing heavy congestion due to raw cashew imports and the transportation of nuts from the port to processing centers is in a slow pace due to monsoon.

From: businessline
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