Container throughput in the port of ICTT Cochin is declining

For the first time in 10 years, the International Container Transhipment Terminal (ICTT) has recorded a decline in container throughput here. From 7.35 lakh 20-foot equivalent units (TEU) in 2021-22, it has dropped to 6.95 lakh TEU in 2022-23.

The ICTT was developed with a vision to boost India’s container throughput and control the increasing outflow of transshipment containers to Colombo. ICTT recorded the decline despite efforts by the Union government to develop it into a successful international hub in the region. Incidentally, given the economic and political uncertainties in Sri Lanka, the Cochin Port Authority (CPA) had planned last year to attract transhipment business from Colombo Port. It appears that CPA ICTT’s moves have not helped it achieve growth.

Responding to the ICTT’s poor performance, a senior CPA official said the port had seen growth over the past fiscal year.

“We cannot comment on the reasons for the decrease in the number of containers handled by ICTT as it is managed by DP World,” the official said.

CD Nandakumar of the Cochin Port Employees’ Organization has pointed out that the drop came at a time when all other terminals in India were increasing throughput. “It is surprising that 85% of the cargo handled by the terminal is domestic. This emergency comes at a time when DP World is making big claims about the terminal’s growth,” he said.

“The team that manages ICTT has consistently failed to attract ships to dock here. The port spends Rs 140 crore to maintain the current depth of 14.5m. Also, the port grants Rs 60 crore per year to shipping companies as Vessel Related Charges (VRC) concessions to make the terminal competitive,” he said.

In the meantime, a statement by the ICTT states that the requirements for a transshipment point have changed drastically with larger ships.

“Deeper draft, infrastructure and competitive sea rates offered by competing transshipment ports are required. Increasing the draft by the Port Authority will result in India’s cargo being loaded onto direct mainline ships destined for global destinations, which in turn will enable better transits and efficient costs for our beneficial cargo owners, thereby making India’s exports and imports more competitive. ICTT has grown by over 5% CAGR (Compound Annual Growth Rate) over the past 5 years, which is higher than the average South Indian growth,” the statement said.