Title - Kerala unveils plans for multimodal system

Skeptics may call it a political stunt. But some of the initiatives unveiled by the Kerala Government at the ‘Emerging Kerala’ event held in Kochi last week reflect the right approach to sector-wise development. It is visible at least in the case of transport and logistics sector.The State plans to develop an integrated multimodal transport system by linking various modes of transport, such as roads, railways, seaports and airports, both for cargo and passengers.As a first step, the Government wants to set up a commercially-viable water transport system to ease the pressure on the road.It is estimated that more than 40,000 cargo trucks from outside the state runs through Kerala roads daily, not only creating road congestion but also polluting the surrounding green environment.

DIVERSION OF CARGO
The State has set a target to divert 20 per cent of the cargo now being moved by road, to coastal shipping in the next three years and 40 per cent by 2010.To achieve this, the government has drawn up a detailed plan, which includes setting up of new port terminals and other infrastructure facilities, creation of a coastal shipping fund to provide financial support to shippers and service providers and establishing a State Maritime Board.

The idea is that the State Government will provide all basic facilities but the projects will be set up by private investors on the public-private-partnership model.

NEW PROJECTS

The Government has identified as many as 20 projects in the maritime sector for private investments. The cost of these projects, which were show-cased in the three-day meet in Kochi, ranges from Rs 2 crore to Rs 2,000 crore.

They include three non-major ports at Kollam, Azikkal and Beypore and two LPG terminals at Azhikal and Kollam; a passenger terminal, a Marina and a dry-docking and repair facilities for house boats at Alappuza. In addition to these, there are other proposals, such as an Oceanorium at Kochi at a cost of Rs 480 crore, a Rs 300-crore container manufacturing unit, a maritime training institute and several other small projects.

Another major project in the state is the Vizinjam container terminal near Thiruvanathapuram.

SUBSIDY SCHEME

To develop costal shipping, the State Government has announced financial assistance and incentives for shippers and ship-owners. Goods moved by coastal vessels will get a direct subsidy of Rs 1 per tonne per km. Coastal service providers will get soft loans up to 40 per cent of the cost of the ship at a low interest of two per cent and up to 80 per cent at 10 per cent interest. In addition to these, costal vessels will get a discount in berth higher and other port charges.

TRAFFIC POTENTIAL

It is estimated that costal traffic can go up to 4.6 million tonnes in the next two years and seven million tonnes by 2019-20.

Currently, the volumes handled by the non-major ports in the State are very low compared to other maritime states. Kerala has a coast line of 590 km dotted with 17 non-major ports and one major port, which is now being developed into an international transhipment terminal — Vallarpadam.

The Government has granted Cabotage relaxation to the terminal enabling it to attract large mother ships. This could also give a new fillip to coastal shipping as the mother-ships need feeder services to deliver and fetch cargo from and to the transhipment terminal.

The Cabotge relaxation will allow foreign flag vessels to operate feeder services from to Vallarapdam terminal.

Coastal shipping is not only the low-cost mode of transport compared to road but also the most environment-friendly. Kerala has all the potential to develop this mode of transport.

This could help develop the integrated multimodal system, as envisaged, making movement of goods and passenger smoother, faster and safer.

So, the Government is on the right track as far as the policy direction is concerned. But the task now is to take these policy initiatives to the next stage at the earliest. Past examples are not reassuring on this count.

Kerala has just announced setting up of a state maritime board, while others like Gujarat and Maharshtra have had one functioning for years. Better late than never!