India funds Cochin transshipment hub amidst Sri Lankan crisis

12 May 2022 CW Team

The Indian Ministry of Ports, Shipping and Waterways (MoPSW) has decided to fund a Rs 300 crore ($38.8 million) project to deepen Cochin Port's channel, improving the port's economic position by capitalising on Sri Lanka's traffic congestion.

The MoPSW expects an increase in transshipment operations at Cochin Port, India's only international container transhipment terminal, after economic and political turbulence and reports of congestion at Colombo Port (ICTT).

The decision to deepen the channel from 14.5 to 18 metres is part of an effort to reduce India's reliance on Colombo for container freight shipping and receiving.

Due to the protracted crisis, the transshipment volume at the ICTT has already climbed to 13,609 TEU in March 2022, up from 8,394 TEU the previous year, according to Cochin Port statistics.

According to the port administration, deepening the canal can be done swiftly to take advantage of the opportunity, but an overall capacity expansion may take longer.

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