The Cochin Port union has requested the Government to ask the Navy, Cochin Shipyard and Coast Guard to share in the port dredging maintenance costs.
The union pointed out that the average maintenance expenditure for dredging has gone up to $19.97 million from $4.87 million per annum before the commissioning of the Vallarpadam terminal, reported The Hindu.
The figure is expected to touch $24.36 million in 2013-14 and will go up to $36.05 million in 2014-15.
The rise in dredging cost is the major reason for the present financial crisis of the port, they added.
The unions also suggested that the Port Trust be granted permission and financial assistance to procure dredgers. Being a major port, it requires 365 days dredging to maintain the channel; if the port has its own dredgers, it will be placed in a comfortable position even during the competitive bidding for contract dredging.
The international container transhipment terminal at Vallarpadam continues to underperform even after being granted Cabotage relaxation in December 2012.
The capacity utilisation of the terminal is around 25 percent and draft utilisation is below 20 percent.
Considering this, the unions demanded a "need-based dredging" by reducing the draft in the ICTT berth basin from the present 14.5m to reduce dredging expenses.
-
Company DirectoryFreight RateExport RateAgency PartnershipCargo Leads