Cochin Port unions fear another spell of financial trouble as dredging cost looks set to spiral
Cochin Port Authority employees have expressed fear over another possible bout of financial trouble for the port as it looks to deepen the shipping channel to 16 metres from the present 14.5 metres despite the licence agreement with DP World stipulating that the port needs to maintain only 14.5-metre depth until the expiry of the licence period.
The Joint Forum of Trade Unions at the port, representing all trade unions cutting across political affiliations, said, “Cochin Port Authority at the directive of the Ministry of Ports, Shipping and Waterways is actively proceeding with a proposal for further deepening of the channel to 16 metres” under “the pretext” of transforming the Vallarpadam ICTT into a successful container transhipment terminal.
A deeper channel would involve more maintenance dredging, adding to the port’s financial burden as there was no response from the government on sharing the cost of maintaining the channel, which was a national asset, used also by the Indian Navy, the Coast Guard and Cochin Shipyard Limited, said P.M. Mohammad Haneef, chairperson of the forum.
Together with the additional burden, the Union Budget 2024-25 has not made any financial provision for the recurring cost of dredging. The Budget was also silent on the request to write off a ₹400-crore outstanding against an “obsolete” loan from the Government of India, said the forum. The port requires government support for maintenance dredging to keep its operations financially competitive.
The transfer of container handling to the Vallarpadam ICTT is meant to end India’s dependence on foreign ports for transshipment. Hence it was a part of the ‘Atmanirbhar’ programme and the government must fund capital dredging and also financially support maintenance of the channel, said C.D. Nandakumar, general convenor of the forum.
Government support would be essential for the Kochi port to survive the competition posed by the commissioning of the Vizhinjam port. Measures to support the port would help Kochi survive in the competitive environment to provide cost effective, prompt and user-friendly service to the port fraternity, added Mr. Nandakumar.
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