Emerging Kerala comes around the time Cochin Port Trust has invited tenders for its ship-building repair yard and the centre has announced disinvestment of Cochin Shipyard Ltd as part of supporting its financial requirements for expansion.
According to a recent study by the Associated Chambers of Commerce and Industry of India (Assocham), the country’s ship-building and repair industry is expected to grow to Rsc 9,200 crore from the present level of Rs 7,310 crore. While this is just one per cent of the global industry, any increase in this will be big for the country.
So, there can be no better and brighter opportunity for the port than to go ahead and showcase its expansion plans during the meet, says the top brass of the port.
It has received overwhelming response for the tenders it invited for its proposed ship-building and repair facility, likely to come up at Willingdon Island.
Assocham secretary general D.S. Rawat says: “Lower costs of labour and availability of skilled workforce together with robust demand in the domestic market and a growing steel industry are certain factors that can build up a strong case for the ship-building sector in the country.”
For the Cochin Port, the conceptual plan envisages the leasing out of its underutilised workshop complex, including the dry dock and slipway for development and operation of an international ship-building and repair facility for 30 years.
After the economic recession in 2008, the shipping sector has not succeeded in sailing out of the crisis.
An unprecedented boom in ship-building prior to that had created an issue where the deliveries have started happening now.
But, when this tapers out by 2013, the situation is expected to improve. It would then be ideal to promote ship-building and also port development, say experts.
For CSL, which had earlier looked at setting up a ship-building yard at Vizhinjam alongside the container transshipment terminal there, the Cochin Port proposal should come in handy.
It is also in the race and had bid for the project. The tenders are to be opened soon after clearance from the Centre. The disinvestment plan should fetch CSL funds for expansion.
Vallarpadam terminal completing a year, Cochin Port is improving logistics and a few container freight stations are coming up.
Besides, the port proposes to set up a cargo berth at a cost of Rs 450 crore at the old terminal. It also has plans to set up a free trade warehouse zone on 103 acres.
The LNG terminal on the port premises is set to go on stream later this year. An oil jetty for refineries is expected to come up there.
state ideal for development of maritime sector
JOSE PAUL
Kerala is an ideal state for the development of the maritime sector. The unique feature of a nearly 600-km long coastline dotted by a number of harbours makes it most ideal for ship-building and port-based development.
Kerala needs to take a cue from Korea, which has emerged as a leader in the shipping sector controlling 27 per cent of the global shipping market.
Till some two decades ago, the industry was dominated by Germany, the UK, Japan and East European countries.
But the situation has changed with Korea and China taking over, literally making most European countries leave the business.
When China’s total container trade is around 160 million TEUs, India’s is just 10m TEUs. And India’s share in the global trade is just one per cent. The 12th Plan proposes to raise this to five per cent.
The time is most opportune now. For port development and ship-building can be developed without encroachments and there are instances of successful yards operating on hardly three acres.
There is also the need to shift a good part of transport from road to water, which is environment-friendly and cost-effective too.
Developing countries are looking at shifting a good part of their goods transport to water. As per the transport policy of the European Union, there is a proposal to shift 20 per cent of goods transport to waterways.
The sail ahead is smooth. If efforts are taken to utilise the unique feature of the state that allows water transport from the southern end to the northern one, Kerala can certainly turn greener.
(The author is the ex- chairman of Mormugao Port Trust, Goa)