Cochin Port Authority urged to take steps to increase revenue

Cochin Port Employees’ Organisation (CPEO) has appealed to the Cochin Port Authority (CPA) to end “inactiveness and take prompt steps to maximise port revenue’‘ from assets created on port land with public investments at Puthuvype and Vallarpadam port-based special economic zone.

In a resolution, the union alleged that the port management had not taken efforts for exploring the possibilities of extracting revenue from key projects such as Petronet LNG regasification terminal, LPG import terminal, multi-user liquid terminal and the International Container Transshipment Terminal, Vallarpadam, with a total investment of approximately ₹10,000 crore.

All mega projects have been established on land leased by the port on a long-term basis with nominal rent. It is important that these projects yield the maximum revenue for the port authority. Although the ICTT has completed 13 years of operations on Vallarpadam island, it does not fully utilise the infrastructure facilities provided by the port.

Accounts of the CPA reveal that the revenue shared by the terminal operator is not adequate even to meet the expenditure for maintenance dredging. “The growth rate of the terminal is disappointing” and has not touched eight million TEUs,” the employees said.

Adding to the concern is the upcoming Vizhinjam international deep-sea port diverting cargo and vessels being handled now at the ICTT. Though not a sudden development, DP World has not evolved a strategy to tackle the situation. The trade union also blamed the port authority for negligence in foreseeing the competition and putting pressure on the terminal operator to evolve new strategies.

The Petronet LNG terminal Puthuvype was commissioned in 2013, and if the mega project is fully operational, it can bring substantial revenue to the port. Similarly, the multi-user liquid terminal established at Puthuvype by Indian Oil Corporation is also not delivering expected results, the union said.

The union has decided to form an action plan to ensure the revival of port activities, said C.D. Nandakumar, general secretary of CPEO.