Transshipment Troubles: India'S Quest for Efficient Port Hubs

Abstract

India should hold a privileged position in maritime transportation due to its extensive coastline and advantageous location. However, the country heavily relies on other maritimenations like Singapore andColombo for transshipment due to insufficient infrastructure and policy framework, and this has created disadvantage to Indian goods in the international market. The government has launched a significant drive to promote three transshipment ports in southern India with top-notch amenities in response to this worrying circumstance. It is anticipated that these ports would compete with the existing transshipment ports, particularly with Colombo, and divert the transshipped goods back to India. The move is expected to make Indian exports more competitive besides making India less prone to geopolitical and economic disturbances in the region. However, these initiatives have beenmet withmany challenges. In fact, the first attempt of the Indian government to set up an International Container Transshipment Terminal (ICTT) at Vallarpadam in Cochin Port has met with failure despite its best infrastructure and connectivity. High-cost structure seems to deter the competitiveness of this port. Furthermore, the development of Vizhinjam into a transshipment hub in the same region has put additional pressure on Vallarpadam. This chapter draws attention to certain factors that might be considered to enhance the competitiveness of Cochin Port. Also, the study highlights the snags that could have well been avoided while implementing the project and might as well be avoided while implementing other projects in line. © 2024 The authors. All rights reserved.