Central Government approves transshipment hub at Cochin Port

12 May 2022 CW Team

The Ministry of Ports, Shipping and Waterways (MoPSW) has announced to fund an Rs 300 crore programme to deepen the channel of Cochin Port. The move to deepen the channel from 14.5 to 18 meters is part of intentions to cut India’s dependence on Colombo to send and receive container cargo.

Following the economic and political turmoil and reports of congestion at Colombo Port, the MoPSW has anticipated an increase in transshipment operations at Cochin Port which is India’s only international container transhipment terminal (ICTT).

As per reports, the Cochin Port Authority has shifted to a cargo-based discount scheme in vessel-related charges for ships calling at ICTT. Deepening the channel can be implemented quickly to further capitalise on the opportunity, while an overall capacity expansion might take longer.

The new discount scheme is aimed at supporting ad-hoc calls made by mainline ship operators at ICTT by skipping Colombo, which were not eligible for the rebate under the earlier scheme.

The transshipment volume at the ICTT has already increased to 13,609 TEU in March 2022 compared to 8,394 TEU the previous year due to the ongoing crisis, according to statistics made available by Cochin Port. Last year, the Port of Cochin was added as call in a Maersk’s weekly service allowing customers to reach global markets directly without transshipping at the Port of Colombo.

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