The Cochin Port Trust (CPT), which is exploring new avenues to augment business, is looking at the possibility of setting up a Free Trade Warehousing Zone (FTWZ) on 102 acres of land located south of the Willingdon Island.
Still at a tentative stage, the FTWZ is among several propositions in a report by a consultant appointed by the CPT to draw up a master plan for the development of the port area after container operations were shifted to the Vallarpadam Island.
CPT sources told The Hindu on Thursday that the FTWZ was planned to be developed in a Special Economic Zone format and that it would be one of the ingredients in a comprehensive plan to create in Kochi a maritime business hub, offering the entire range of services.
A logistics hub, multi-purpose liquid terminal, bunkering, and ship repair are among the other activities being explored by the Port authority here. The port's consultant pointed out that the Foreign Trade Policy 2004-09 had highlighted the need to set up FTWZs to “create trade-related infrastructure.” They are conceived as international trade hubs and links in global logistics and supply chains serving both India and the world.
“The key differentiator between an FTWZ and a standard warehouse is the unique product offering wherein the benefits of a free zone are integrated with professionally handled, high quality physical infrastructure,” said the report.
Duty deferment, local and service tax exemption, 100 per cent income-tax exemption for developers and users of the zone, and re-export without duty implication are some of the key advantages of setting up an FTWZ.
The well-established seafood, cashew, and spices export businesses; emerging areas like import of furniture into Kerala from centres in Malaysia, Taiwan, Sri Lanka, and Brazil; and growing ties with African countries involving businesses in tea, timber, crude, etc. are other encouraging aspects as far as the FTWZ concept is concerned.
Another encouraging feature is that small and mid-sized enterprises are now turning more and more to ocean logistics as a cheaper alternative.
In setting up such a facility, Kochi will leverage its location advantage, lying on the Europe-Australia-Far East sea route. The availability of land (102 acres) and an industrial cluster being served by the Kochi port and India's first international container transshipment terminal are the other advantages Kochi enjoys in setting up an FTWZ.
