KOCHI, MAR 3: The proposed Sethusamudram ship canal project, which reduces the distance between the eastern and western ports of the country, has come into focus again with Finance Minister Yashwant Sinha announcing provision of funds for its techno-economic feasibility study in the Union Budget.A section of the exporters and shipping circles feel the project may lead to the decreasing prominence of the Kochi port unless the Cochin Port Trust (CPT) and the users of Kochi port step up the activities for setting up the container transhipment terminal at Vallarpadam island near here.
The Sethusamudram canal project envisages construction of a canal between the Palk Strait and the Gulf of Mannar leading to shortening of the distance between the east and west coast of India. The vessels coming from the eastern side of the country will be able to approach ports on the western side abandoning the circuitous route via Colombo. The ships going from the western coast to the eastern side will also get similaradvantage.
When the canal comes up, over 800 km distance will be saved between the Chennai and the Tuticorin port and over 400 km will be saved between Chennai and Kochi. The Tuticorin port will benefit a lot as the vessels coming from South East Asian countries is expected to reach this port faster. The Tuticorin port is in the process of expansion in collaboration with the Singapore port.
A large part of the cargo going from Kochi port is not generated from Kerala. Quite a lot of it comes from other states. There is a fear among the local shipping circles that a part of the cargo may get diverted to Tuticorin.
At the same time, a section of steamer agents feel that the project will not affect the prospects of the Kochi port. They say that the project, besides shortening the distance, will have no ill-effects on Kochi port. On the other hand, it will help in bringing down the cost. Moreover, the proximity to the international sea route is another advantage for Kochi port.
Meanwhile, the CPT has gotthe approval of the Surface Transport Ministry on the documents for inviting tenders for Vallarpadam container transshipment terminal. About 16 companies have expressed interest in the project and have been informed about the tender. They have been given a week for submitting the quotations. The Tuticorin port is also vying for the container transshipment terminal.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.