Chairman, Kerala Maritime Board
The author is a boutique Maritime Lawyer in India , specialised in Maritime Law, Admiralty, International Law, Corporate & Commercial litigations , Arbitration having offices of VJ Mathew & Co., International Law Firm at all Indian Port cities and other metros and attend all Courts, Customs, Tribunals and legal matters in India, and abroad, and regularly attend foreign and Indian Arbitrations.
The Kerala Maritime Board has been spearheading the coastal shipping in Kerala since 2017. However, Kerala has had an active coastal shipping business in its major and minor ports since time immemorial. The Cochin port being the only major port in Kerala and one among the largest commercial Ports in India, is remarked as a hub for maritime commerce in this country. This port dealt with the cargo throughput of more than 31 million tonnes in the previous few years.
The four main active non-major ports out of seventeen Ports in Kerala are Azhikal, Vizhinjam, Kollam and Beypore. In order to have a smooth coastal shipping service connecting these active ports, green freight corridor service operated by Round The Coast Pvt. Ltd. commenced with its coastal shipping service connecting Kochi Port to Beypore port and Azhikkal port. As each ship had the capacity to accommodate 100 containers, within a period of eight months, 3066 plus containers were handled connecting ports Kochi , Beypore, Azhikal and Kollam in 40 voyages of coastal ships, thereby easing the traffic congestion on highways and city roads.
The Vizhinjam port being the closest to the international shipping routes and having a natural draft of 20 to 30 metres, offers large scale automation for quick turnaround of vessels and has the capacity to handle megamax containerships/ tanker vessels. This port has gained fame by the significant number of crew change for various vessels including container ships, tanker vessels and gas tankers. Despite multiple oppositions, “Evergreen Globe” which is one of the largest container vessel in the world with a capacity to hold 24,500 containers weighing in total about 2,75,000 tones had come to the Vizinjam port for crew change. It’s carrying capacity is 20160 TEU and her current draught is reported to be 15.8 meters. Her length overall (LOA) is 399.98 meters and her width is 58 meters. With this, Vizhinjam Port in Kerala and Kerala Maritime Board got a place in the world maritime map. As a result of the arrival of EVERGREEN, since July till date with 655 plus ships have come to Vizinjam for crew change and other essential services. This has generated crores of revenue for the Board ( the government) Additionally, thousands of people, directly and indirectly, were employed due to this in the Covid Period.
We have taken steps to facilitate Customs and Immigration Offices to be housed into a modern building. Duty free shop will be opened in Vizhinjam Port . Floating jetties will be set up at Vizhinjam, Valiyathura, Kollam, Neendakara, Alappuzha, Kodungallur, Ponnani, Beypore, Thalassery, Azheekal, Kannur and Kasaragod ports in Kerala. This will allow smaller vessels and barges to approach and operate at these jetties for a variety of purposes.
The Kerala Maritime Board is keen to implement High level security at all ports as part of the implementation of the ISPS Code and the same is nearing completion. The concept of ‘Clean and Green Port’ is being implemented within the stipulated time. The Coastal Cargo Passenger Shipping Service which will connect Vizhinjam, Kollam, Kochi, Mali and Thoothukudi will be implemented. New berths will be constructed at all ports which will be long enough to accommodate larger ships. Tender proceedings already floated to dredge all the Ports Berth and Channel to deepen 7 meters in the first phase and 11 meters in the 2nd phase.
Beypore handles around 50,000 tonnes and Azhikkal about 5000 tones of cargo annually. The Kollam port is noteworthy for its ability to accommodate ships with a draft of 7.5 meters and length up to 180 meters. It would be advisable to have facilities for re-fuelling and warehousing, which the port doesn’t have currently.
The Kerala Government’s establishment KSINC excels in barge operations and owns two yards for the construction, maintenance and operation of vessels, catering to a wide range of customer requirements. The Ports of Kerala are also well equipped with tugs, reach stackers and shore cranes to cater to the needs of coastal shipping lines and for their smooth loading and unloading.
The one major port and seventeen minor Ports of Kerala have had a notable history of coastal shipping and developments towards the betterment and smooth functioning of coastal shipping are undertaken continuously. After the institution of the Kerala Maritime Board, the coastal shipping scenario in Kerala has seen a great progress and a remarkable upgradation to international standards
Initiatives being taken by the Kerala Maritime Board to promote coastal cargo movement
The Kerala Maritime Board was formed on January 7, 2018, subsequent to the passing of the Kerala Maritime Board Act, 2017 by the Kerala Legislative Assembly to streamline the development activities of seventeen minor ports and allied sectors in Kerala. In furtherance to this, the Kerala Maritime Board undertook measures for the betterment of various maritime sectors in the State, including but not limited to the development of Ports in Kerala, burgeoning of coastal transport and providing quality maritime education. One of the major missions of the Kerala Maritime Board is to increase the share of Kerala in the maritime trade of India by increasing the cargo movement through non-major ports.
An important aim of the Kerala Maritime Board has been the promotion of coastal transport. The foremost initiative taken by the Kerala Maritime Board to promote coastal cargo movement was declaration of incentives through the Government of Kerala for the promotion of coastal cargo movement. By virtue of this, the Government provides an incentive of 50% of road transportation cost after adding 10% cost prescribed by NATPAC, for each container brought by container vessels. Thereafter, the Kerala Maritime Board completed and inaugurated a 101 meter long Passenger cum Cargo Wharf which will bring in passenger ships and cargo ships to Kollam.
Steps were taken to commence coastal cargo movement connecting the Ports of Kollam, Kochi, Beypore and Azheekal through high speed passenger cum cargo ferry vessels on a charter/ PPP basis and to initiate high speed cargo shipping operations connecting cities at the Ports of Vizhinjam, Kollam, Kochi, Calicut and Kannur. Initiatives were taken for connecting Beypore port and other minor port of Kerala with Mangalore port, which will permit the coastal transportation of chemicals, hazardous liquids, petroleum products and LNG gas through barges, minor ships and ro-ro vessels. In furtherance to this, measures are being taken to start tank farms for storage of LNG and petroleum products. This initiative was well backed by investors including public sector companies, by their act of coming forward and expression of interest to start oil tank farms in the Ports of Kerala. Initiatives were taken to set up automatic cement terminal at various Ports in Kerala to grind cement clinkers on the ship carrying cement clinkers and to load it in sacks, enabling direct loading to the transport vehicle.
The Kerala Maritime Board intended to collaborate with Gujarat, Mumbai and other Maritime Boards of the country for businesses, investments and other activities at the Ports of Kerala, so as to effectively promote coastal transport and to explore and implement Kerala Coastal Transport and other Port related business opportunities. Initiatives were also taken to commence ferry services from Gujarat to the Ports of Beypore, Azheekal, Kollam for transportation of break-bulk and bulk cargo. The Kerala Maritime Board also took initiative to work in partnership with the Director of Ports, Lakshadweep to jointly launch passenger cum cargo vessels. This will enable export and import of seafood and construction materials at Ports of Kerala and Lakshadweep.
On discussion with the Kerala Maritime Board, the logistics conglomerate, JM BAXI group launched a company ‘Round the Coast Pvt. Ltd.’ for short sea container shipping service linking Ports of Cochin (Vallarpadam), Beypore, Azhikal and Kollam for moving cargo through it.
The Kerala Maritime Board decided and resolved to implement shift system among the employees, port staffs, tug operators and workers at all active Ports, particularly Beypore, Azhikal, Kollam and Vizhinjam and round the clock pilotage, berthing, sailing and tug operation at all ports, for the smooth and uninterrupted functioning of ports, vessel and cargo operation and crew change.
Inorder to promote Kerala Ports, the Kerala Maritime Board took initiative to permit vessels to do crew change, bunkering, ship chandling, survey, changing registration and incidental activities and within a short span of 1.5 years, 650 plus huge containers / vessels came to Vizhinjam for undergoing the above services.
By virtue of the Kerala Maritime Board’s discussion to increase the depths/drafts of all active ports in Kerala to 7 meters in the first phase and to 11 meters in the second phase, it was decided to scientifically dredge the berths and channels of active Ports like Vizhinjam, Kollam Beypore and Azhikal, on war footing basis, not only to attract more coastal shipping liners, but also for enabling safe berthing of larger vessels, which will thereby increase the volume of coastal cargo movement and shipping business in the Ports of Kerala.
The initiative of e-office/ computerization / digitalization of all Ports in Kerala, particularly Kollam, Beypore and Azhikal to meet with International Standards was undertaken with the motive of tracking all import and export containers/ cargo movements, including coastal shipments, billings, payments and transactions including payments towards incentives to shipping lines. Initiatives were also taken for mapping and digitalization of the entire assets of ports including buildings, landed properties, fixtures and fittings, equipment’s at the ports and port lands. The Kerala Maritime Board decided to implement weigh-bridge, CCTV camera, GPS, AIS and VTMS to ensure proper monitoring of the movement of trucks, sand mining / selling and online payments through banks to ensure 100% transparency in all ports, in compliance with ISPS standards.
Further, steps were taken to implement ISPS Code and security gates at two locations at all ports as per international standards, so as to maintain security arrangements for coastal shipping lines, ports and Government agencies, which will help safe berthing / sailing, thereby increasing the business in the Ports of Kerala. In addition, it was decided to implement the EDI facility for direct processing of export and import cargo operations at ports.
It is evident from the above that under the guidance, aegis and direction of the Kerala Maritime Board, initiatives were taken to curb the challenges faced by coastal shipping in various departments.
Commodities / volumes being moved through coastal shipping
The commodities transported via coastal shipping vary from each state of a nation, depending on the nature of their export and import. In Kerala the major goods moved through coastal shipping are plywood, cement, tiles, consumables, food items, furniture, rice, wheat, etc. Lately, initiatives have been taken to transport edibles including salt, masalas, spices, turmeric, chillies, cardamom, pepper, coffee, vegetable oils, coconuts, cashew and seafood including fish and prawns through coastal shipping. Measures have also been taken to increase the transportation of construction materials including hardware, metals, minerals, ores, wood, teakwood, paper and pasteboard, glass and raw asbestos through coastal shipping. The industrial materials tried to move via coastal shipping includes chemicals, chemical preparations, liquid ammonia, phosphate, gums, resins, raw cotton, coir, synthetic rubber, natural rubber and paraffin wax. Initiatives have also been taken to transport household items through coastal shipping, including glassware, cutlery, refractory materials, sanitary wares, footwear, textiles and cotton garments. The Kerala Maritime Board has also taken initiatives to start industrial ports, using commodities imported in each Port.
Immediate priorities of the Kerala Maritime Board
We are pleased to announce that in this short span of time the Kerala Maritime Board has held over 22 Board Meetings which has resulted in the promulgations of hundreds of Board decisions and projects which are aimed at upgrading the 17 minor ports, under the purview of the Kerala Maritime Board, to Ports having International standards. There are nothing more required and to be decided by Board, to develop Kerala Ports to International standards. We KMB had published a document recently which contains, the Kerala Maritime Board’s vision and various 100’s of projects and other development activities proposed to be implemented in each port in Kerala under the new Government’s tenure of the next 5 years .
Board took initiative to commence long awaited Coastal Container Vessel Operation by Round the Coast, which is a division of JM Baxi Group connecting Ports of Azhikal, Beypore, Kochi, Kollam and in the 2nd phase to connect Vizhinjam and as on date the same has completed 42 voyages successfully . The operator recently confirmed that by 2022 they would deploy one more vessel in this sector
Issues and challenges faced by coastal shipping lines
The general issues and challenges faced by coastal shipping lines at Indian Ports are institutional, infrastructural and financial challenges. The major issue faced by coastal shipping lines on arrival at the Ports of Kerala major was delay caused due to non-functioning of port for 24 hours leading to higher berthing charges and increased cost due to delay in voyage. However, after the institution of the Kerala Maritime Board, initiatives were taken to bring in shifts so as to increase the working hours.
Another specific issue faced at Kerala Ports is less draft of only 3.5 metres, which restricts the entry of larger vessels. It is to curb this challenge that the Kerala Maritime Board took initiative to increase the depths/drafts of all active Ports in Kerala to 7 meters in the first phase and to 11 meters in the second phase, thereby welcoming larger vessels, leading to an increase in volume of coastal cargo movement in the Ports of Kerala.
