Dubai Ports World has expressed concern over potential delays in the construction of its new 3-million-TEU capacity transshipment terminal in the Port of Cochin in South India, as well as operations at its existing Cochin terminal, according to a report in the Economic Times over the weekend.
The report said Ganesh Raj, DP World's managing director for the Subcontinent, wrote a letter to Cochin Port Trust Chairman N. Ramachandran over the number of worker strikes taking place in the port. The story said there have been 14 strikes since work began 20 months ago, including a recent one where workers failed to show up for two consecutive days.
In a meeting last week with American Shipper in Cochin, Suresh Joseph, DP World's general manager for its Cochin terminal, said construction of the new container terminal is progressing and it will open in the second half of 2009.
The terminal, called the International Container Transshipment Terminal, is designed to serve two purposes:
Shift container activities away from Cochin's current terminal.
Lure transshipment cargo away from the Port of Colombo in Sri Lanka.
Colombo is a key transshipment hub for the Indian market simply because the cost and availability of services between Indian ports is substantially higher than routing it through Sri Lanka.
DP World officials in Cochin said they are lobbying Indian government officials to relax cabotage rules that make feeder services from other Indian ports so expensive, including a provision that would allow foreign vessel operators to provide a service if no Indian-flagged vessel is filling a particular market need. Like the U.S. Jones Act, India's maritime administration only allows Indian-flagged vessels to run domestic services between ports.
Cochin, located some 70 nautical miles off the main sea route linking the Far East and the Middle East, could be a key alternative once the transshipment port is open for business.
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Source: American Shipper
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