Dubai Ports International (DPI), one of the world's leading port operators, announced that it has formally signed an agreement with The Kochi Port Trust (KoPT) to construct, develop and operate an International Container Transhipment Terminal (ICTT) - An India Gateway Terminal - at Vallarpadam.
The project was formally launched with the laying of the foundation stone by Prime Minister Manmohan Singh. The ceremony was attended by Thomas Jacob, Chairman, KoPT and Sultan Ahmed Bin Sulayem, Executive Chairman Dubai Ports. The proceedings were overseen by Minister of Shipping T.R. Baalu, Chief Minister for Kerala, Oommen Chandy and Governor of Kerala R.L. Bhatia.
Vallarpadam is the largest single-operator container terminal currently planned in India and the first in the country to operate in a Special Economic Zone(SEZ). The new terminal will make Kochi a key centre in the shipping world reducing India's dependence on foreign ports to handle transhipment. The agreement, approved by the Cabinet Committee of Economic Affairs allows DPI to manage and subsequently transfer its operations at the Rajiv Gandhi Container Terminal (RGCT) in Kochi Port to the new terminal. DPI has been granted a 38-year concession for the exclusive operation and management of the site and will share 33.33 per cent of the revenue with KoPT.
Construction is expected to be completed in four years and commercial operations to begin within a year of completion. The first phase of the new terminal will have a capacity of one million Twenty foot Equivalents (TEU) and cost approximately US$135 million. It will consist of 600 metres of quay, six Super Post Panamax Quay Cranes and an on-dock railhead serviced by rail-mounted gantry cranes. Construction of a new four-lane bridge and highway access to the 'golden quadrilateral' road network is already underway. Vallarpadam will be expanded ahead of demand to a total 1.8km of quay eventually and at least 16 Quay Cranes capable of handling the largest vessels afloat, with associated yard-handling equipment and a capacity of three million TEU.
The total cost of the project is estimated at US$500 million and will be funded by DPI through non-recourse debt funding. The debt is provided by a consortium of banks led by the Infrastructure Development Fund Company (IDFC), set up to provide growth capital for infrastructure projects in India.
