NST, January 29th, 2002 - The delegation hopes to find investors and operators to build, own and manage the port for a 30-year contractual period.

AN INDIAN delegation is currently approaching Malaysian port operators to initiate building a transhipment hub in Vallarpadam, India.

The delegation, which includes the Indian Minister of Shipping, Vedprakash Goyal, yesterday met up with officials from Kelang Multi Terminal Sdn Bhd, the operators of Westport. It is to meet officials from the Port of Tanjung Pelepas (PTP) today.

The delegation hopes to find investors and operators to build, own and manage the port for a 3O-yearcontractual period.

During the ,30 year period, the Indian Government and the operator will share the revenue, Goyal said.

The new port which will be near Cochin in South India expected to attract the transhipment containers which are currently being handled by the Port of Colombo.

"There is a lot of unexplored potential in Vallarpadam, we hope to increase efficiency and tranship the two million boxes or so currently in Sri Lanka," the Indian Minister said.

The Vallarpadam transhipment hub is to have a capacity of three million container box a year.

The capital expenditure required is in the region of RMl.9 billion for the two 300-year berths.

"We hope to initiate the construction works within the next six months, and have the entire project completed within the next two years," Goyal added.

India currently handles only some 2.5 million TEUs(20-foot equivalent units) per annum- sources , however, believed that the true potential of the port remains untapped.

"India has more than 600km of coastline, and with a very large hinterland, the prospect are great," the Indian minister said.

The Indian ports only handle in the region of 2.5 million container boxes annually partly due to the difficulties in modernising and upgrading the ports. Even the Indian Transhipment cargo is handled at neighbouring Sri Lanka's Port of Colombo.

The large ports in Chennai and Mumbai are run by P&O while that in Tuticorin is handled by the PSA.

The reason for the Indian delegation showing interest in both Westport and PTP may be due to the tremendous growth patterns at the two new ports. Last year, Westport handled 1.45million container boxes, increasing its throughput by 45 per cent from the one million containers handled in 2000.

PTP on the converse only managed to handle 2 million TEUs in the second year of operations.

The delegation will also be visiting Singapore and Hong Kong in the hope of finding the appropriate partner.