Because VOC seaport is heavily dependent on Colombo Port, the impact of Sri Lanka’s economic crisis has delayed EXIM traffic. Though the situation in the neighbouring Island Nation has caused concern, it has had little influence on trade so far, according to JP Joe Villavarayar, head of the Tuticorin Port Transport and Equipment Owners Association. The economic uncertainty in Sri Lanka has led to cargo diversion from Thoothukudi to seaports in Chennai, Cochin, and Gujarat, according to Mohan, secretary of the Tuticorin Ship Agents Association, as some stakeholders avoided transshipment to the economically struggling Sri Lanka, where the cost of fuel-dependent logistics is daunting.
Further, he said demands were placed before the Port authorities here to offer a docking incentive fee to attract mother vessels to call at VOC Port, where channel widening is done. J David Raja, senior vice president, St John Freight Systems Limited, Thoothukudi, said, the inter-terminal trucking in Colombo is facing threat as stakeholders could hardly outsource fuel management service. Raja said a volume of cargo diversion is on to Mumbai from Thoothukudi. There was a delay in in-bound cargo from Colombo.
