Government announces concessions to promote container transhipment and coastal shipping

The government is set to allow concession in royalty or revenue share payable by private firms handling transhipment and coastal containers at their facilities in Centre-owned major ports, in a policy boost to promote container transhipment and coastal shipping in the country.
The relaxation in payment of royalty or revenue share by public-private-partnership (PPP) operators at major ports on transhipment and coastal containers will be made applicable to existing terminals and upcoming projects, an official briefed on the plan said.
The move will benefit the international container transhipment terminal run by Dubai’s DP World at Vallarpadam in Cochin Port Trust, the only such exclusive facility built at a major port to handle Indian cargo containers that are routed through Colombo or Singapore. It was developed to cut India’s dependence on regional hubs and help save extra time and costs, but has failed to live up to expectations due to water depth constraints and higher rates on vessel related charges, compared to Colombo.