Friday, June 22, 2007

Tender process for Vizhinjam port to be completed soon

Tender process for Vizhinjam port to be completed soon
Staff Reporter
First phase of the project to be completed within three years
Security clearance hinders projectGovernment to take up projects under public-private partnership
Thiruvananthapuram: The tender process for the Vizhinjam international container transhipment terminal will be completed this year and the first phase of the project within three years, Minister for Ports M. Vijayakumar has said.
Replying to questions in the Assembly on Friday, the Minister said 43 companies, including 12 foreign firms, had participated in the investors meet held in the capital city in April.
A company, sponsored by the Russian Government, had evinced interest in the project, he said.
Mr. Vijayakumar said the security clearance was the main hurdle in the implementation of the project.
The State Government had been advised to consider national interest and internal security while evaluating the tenders.
Rail India Technical and Economic Services Limited (RITES) had been entrusted with the feasibility study on the rail and road connectivity to the port. The Rs.45 lakh-study would be completed within four months. Agreement
An agreement would soon be signed with the Kerala Water Authority for making available water from Vellayani Lake to the proposed port at a cost of Rs.3.89 crore. Talks were on with the Kerala State Electricity Board for ensuring power supply to the port.
The Minister said Vizhinjam was among the six ports in the State that would be developed in the first phase. The others are at Thangaserri, Alappuzha, Ponnani, Beypore, Azheekal.
He said Azheekal had been included in the National Maritime Programme of the Union Government. Land measuring 1.8 hectares would be acquired for the project estimated to cost Rs.1,387 crore.
The work on the port at Thangaserri was nearing completion and would be commissioned soon.
A marina and cargo port had been proposed for Alappuzha taking into account its tourism potential.
Huge investment would be needed for the development of the ports and the Government planned to take up the projects under public-private partnership.Maritime academies
Mr. Vijayakumar said the Government would set up maritime academies at Majeshwaram and Valiathura in Thiruvananthapuram.
Although land had been identified at Manjeshwaram, the progress of the project at Valiathura had hit a bottleneck. Replying to a question, the Minister said priority would be accorded to the rail-road connectivity for the proposed Vallarpadam project.

Sunday, June 17, 2007

JANAPAKSHAM to launch offensive against Mr.Jose Cyriac

Janapaksham Executive Committee has decided to launch protests against The Principal Secretary Finance Mr.Jose Cyriac who is playing all cards against the Vizhinjam project

A memorandum will be submitted to Finance Minister Sri.Thomas Isaac and Chief Minister Sri.V.S.Achuthanandan

Memorandum also will be given to Port minister Sri.M.Vijayakumar , Fisheries minister Sri.S.Sharma and Water resources Sri.N.K.Premachandran- these 5 forms the VISL Director board

An indefinite relay strike in front of Secretariat is on cards - if the tender process does not start by August

What Mr.Jose Cyriac has done ?

1.He drowned critical files and file notes during UDF regime - so that the International bid wont happen . The decision to go for International tender process was taken in the cabinet meeting without the files .This was revealed by none other than the former Chief Secretary of Kerala Sri.Vijayan Unni , in a famous meeting at Hotel Pankaj organised by Janapaksham. The clip was shown in TV channels for two days

2. The dates were very crucial - if that cabinet decision was not taken the tender process could not have proceeded and the entire exercise would have faltered . Vizhinjam could have ended up as a failed project

3.He is playing the same cards again . He wont release the money for IL&FS ,approx 80 Lakhs. For the consultation fees to be given to them for the work on previous international tender. He wont release money for L&T Ramboll ,approx 15 Lakhs for the project report

4.The same companies are now entrusted with consultancy . They wont start work unless the previous dues are given to them . This man knows how to play.Delay the files in his desk.

5.A committee has been formed to look after finacial affairs of VISL (Vizhinjam International Seaport Limited) . Mr.Jose cyriac is the chief. Port Secretary Sri.L.Radhakrishnan has been purposefully avoided from this committee, so that this man can play freely.now Mr.Radhakrishnan has done major work for the project till now.

So WHO is Jose Cyriac ?

He is

K. JOSE CYRIAC
Principal Secretary Finance
Government of Kerala

New realities

THE SHASHI THAROOR COLUMN

Kerala has never been a hot destination for industrial investment because of the heavily politicised environment. But things may be changing…

OVER the years, in this space, I have talked about the strengths of Kerala — its liberality, its pluralism, its literacy, its empowerment of women, its openness to the world. But it’s difficult to deny that despite all this, the State has acquired a less than positive reputation as a place to invest. “Keralites are far too conscious of their rights and not enough of their duties,” one expatriate Malayali businessman told me. “It’s impossible to get any work done by a Keralite labour force — and then there are those unions!” He sighed. “Every time we persuade an industrialist to invest in Kerala, it ends badly. The late G.D. Birla put a Gwalior Rayons plant in Mavoor — it has long since closed. The Doshis of Mumbai started the Premier Tyre factory in Kalamassery — you know the fate of that plant? The late Raunaq Singh set up the first Apollo Tyres plant in Chalakudi, but all the expansions of Apollo Tyres since then went to other States such as Gujarat, as neither Raunaq or his son Omkar could deal with the politically charged trade unions.” He shook his head. “I am a Malayali,” he declared, “but I would not advise anyone to invest in Kerala.”Outdated notions
It was with his words ringing in my years that I stepped gingerly into my home State in May. Newly freed from my career as a U.N. official, I wanted to see what I could do for Kerala’s development, in particular by opening the eyes of foreign investors to what the State had to offer. What I saw and heard there convinces me that my friend’s pessimism is, at the very least, out of date.
For one thing, the attitude of the work force is not what it was. It’s always been a curious paradox that Keralites put in long hours in places like the Gulf, where they have earned a reputation for being hard-working and utterly reliable, while at home they are seen as indolent and strike-prone. Surely the same people couldn’t be so different in two different places? And yet they were — for one simple reason: the politicised environment at home. It’s a reputation that has come to haunt Kerala. Several people told me the story of how BMW had been persuaded to install a car-manufacturing plant in the State, thanks to generous concessions by the government. But the very day the BMW executives arrived in Kerala to sign the deal, they were greeted by a bandh: the State had shut down over some marginal political issue, cars were being blocked on the streets, shops were closed by a hartal. It had nothing to do with BMW or with foreign investme nt, but the executives — or so I was told — beat a hasty retreat. The plant has now been set up in neighbouring Tamil Nadu.
Kerala’s political and business leaders are aware of this story. But few are aware of the counter-narrative. Last year I met Antony Prince, a Malayali long settled in the Bahamas, who is President of a major ship design company there, GTR Campbell (GTRC). GTRC had built many ships around the world, and its contracts had helped revive China’s Xingang Shipyard. Why not try and do the same in his native land, Prince wondered. Ignoring all the friendly (negative) advice he was given, he decided to get one of his huge “Trader” class double-hull bulk carriers built at Kerala’s Cochin Shipyard. This was a major undertaking: GTRC’s Trader class ships are 30,000 tons deadweight, have cargo holds of 40,000 cubic metres in capacity, and are meant to sail over a range of 15,500 nautical miles, so the task would have challenged a more experienced shipyard. But as the work unfolded, Prince realised he need not have worried. Not only was there not a single strike or work stoppage, but the shipyard workers took pride in having been given such a major assignment. They finished the job to GTRC’s complete satisfaction — ahead of deadline. Five more ships will now be built in Cochin; it’s the shipyard’s largest-ever order. Greater possibilities
But the potential is even greater. Working with GTRC had transformed Xingang into a world-class shipbuilder; there is no reason why the same cannot happen in Kochi. Mr. Prince was enthusiastic about the prospects. “The officers and workers in the Cochin yard have proved that they can do it, launching the first vessel on schedule, with first-rate quality and meeting international shipbuilding standards”, he said. “I hope the message will spread.” It should. The interesting point is that shipbuilding is a highly labour-intensive industry; some 30 per cent of the input is human labour, which is what makes it ideal for a country like India. The workers at Cochin Shipyard — unionised to a man — demonstrated that labour remains India’s greatest asset, even in Kerala. It is not, as skittish investors had long feared, a liability.
A visit to Thiruvananthapuram’s Technopark confirmed my impression that the sceptics are behind the curve. CEO after CEO told me in glowing terms of their satisfaction with the work environment in Kerala, the quality of the local engineering graduates, and the beauty of the lush and tranquil surroundings. Indeed, Kerala’s past failures at attracting and retaining heavy industry are now working in the State’s favour. Tranquil surroundings
One Technopark firm, US Technologies, told me of having bid for a contract with a Houston-based company which had drawn up a short-list of Indian service providers and placed the Thiruvananthapuram-based company last. The American executives making the final decision flew down to India to inspect the six short-listed Indian firms. After three harrowing days ploughing through the traffic congestion and pollution of Mumbai, Bangalore, and Delhi, they arrived in Thiruvananthapuram, checked into the Leela at Kovalam beach, sipped a drink by the seaside at sunset — and voted unanimously to give the contract to US Technologies. “If we have to visit India from time to time to see how our contract is doing,” the chief said, “we’d rather visit Kerala than any other place in India.”
As they say in the U.S.: Sounds like a plan! It is time that Indian investors took notice as well. God’s Own Country no longer deserves the business reputation of being the devil’s playground.

Vizhinjam: Pact signed with RITES

Our BureauThiruvananthapuram May 31 The Kerala Government has signed an agreement with Rail India Technical and Economic Service Ltd (RITES) for preparing a detailed report on establishing road and rail connectivity to the proposed international container transhipment terminal at Vizhinjam, near here.The Minister for Ports, Mr M. Vijayakumar, who presided over the function here on Thursday, said that the contract for execution of the project was expected to be finalised by December.

Monday, June 11, 2007

Port competition reaches subcontinental proportions

Port competition reaches subcontinental proportions
T. E. Raja Simhan
COLOMBO PORT is facing increasing competition from Indian facilities.
The southern ports of Chennai and Tuticorin are gearing up with plans to become major container transhipment hubs, with Ennore (near Chennai) to join them. Vallarpadam in Kerala is to have an international container transhipment terminal. Colachel in Tamil Nadu is being considered for a container terminal. And Tuticorin plans to have a new outer harbour with major focus on container handling.
Colombo Plans
Against this backdrop, the Colombo port, which is among the top 40 container ports world-wide, is investing over Rs 2,500 crore on a new outer deepwater harbour.
It plans to become a major maritime hub in the region. Colombo, till recently the dominant port in the region, is facing increasing competition from Indian facilities, which are getting more container volumes thanks to the economic growth. Now, Colombo handles around 3 million TEUs against its capacity of 3.7 m TEUs. At the current growth rate, the port will reach full capacity by 2010.
The Sri Lanka Ports Authority, through a funding from the Asian Development Bank, plans to construct a new outer deepwater harbour enclosed by new breakwaters to handle the next generation ships. The project will abut the current Port of Colombo.
The construction of the basic infrastructure will be followed by the building of three terminals in stages. The first terminal will be constructed as public-private enterprise on build-own-transfer basis, according to information available on the SLPA web site.
The proposed Colombo Port Expansion Project will be designed to accommodate vessels with an overall length of 400 metre, beam of 55 metres and draft of 16 metres. Each of the four terminals will have a capacity to handle 2.4 million TEUs per annum.
The Colombo port lies at the centre of the main east-west shipping route, which links the Asia-Pacific region with Europe and North America. Further, the short transit time to India creates an opportunity to access the expanding markets of the Indian subcontinent.
Port of Colombo had established its position as the dominant transhipment port for the Indian subcontinent by the mid-1990s. Its container traffic rose from 0.6 million TEUs in 1990 to 1.7 million TEUs in 1997. However, after 1997, Colombo entered a period of stagnation with traffic remaining at 1.7 million TEU per annum until 2002.
Indian cargo
The expansion at the Colombo port will not affect the Indian facilities, according to experts such as Mr N. K. Raghupathy, Chairman, Tuticorin Port Trust. The total container traffic of 5.4 million TEUs in 2006-07 at Indian ports is expected to grow at 12 per cent per annum the next few years.
This will taper off to 9 per cent in 2010 and 7 per cent after 2015. This forecast is based on "export growth predicted by authoritative forecasting bodies" and marginal additional container penetration. India handles 5.4 million TEUs, while China handles over 40 million TEUs. With the Indian economy booming and with no signs of China's growth abating, huge opportunities exist for transhipment of containers in South Asia. Tuticorin aims to reach the status of a regional transhipment hub by 2011-12, says Mr Raghupathy.
"I believe that Colombo, Tuticorin, Chennai, Vallarpadam, Vizhinjam and Colachel will all have their share of the transhipment traffic. The infrastructure creation at Tuticorin, Colachel or Vallarpadam is not only with 2011-12 in mind but also to meet the demand several years ahead."
As per the National Maritime Development Programme of the Centre, India's container throughput will more than triple by 2011-12 from 5.5 million teus in 2006-07.
With 27 container berths (of about 300 m length each) available in the country, huge additional capacity for handling containers needs to be developed in major or non-major ports.
As Mr Raghupathy said: "The question is not whether there will be enough cargo, but whether there will be enough infrastructure to handle the country's cargo. Additional container handling capacity can come up only in the south in addition to the west and north-west." http://www.thehindubusinessline.com/2007/06/11/stories/2007061100830600.htm

Saturday, June 2, 2007

TRAC urges Achuthanandan to expedite city development

Seeks better coordination between various departments
Calls for augmentation of basic facilities prior to development of Vizhinjam container terminal
Says Government soft-pedalling proposal to set up an IT corridor
Thiruvananthapuram: The Trivandrum Residents Apex Council (TRAC) has urged the Government to fast-track the development of the capital city.
In a memorandum submitted to Chief Minister V.S. Achuthanandan here on Friday, TRAC president Amaravila Ramakrishnan Nair and general secretary K.T. Roy called for augmentation of basic facilities prior to the development of an international container terminal at Vizhinjam. The memorandum also stressed the need to complete the construction of mini-fishing harbours at Vizhinjam and Muthalapozhy on a war footing.
The memorandum urged the Government to exert pressure on the district administration to speed up land acquisition for the construction of four air bays and the extension of the runway for the international airport.
It said the Left Democratic Front (LDF) Government failed to honour its word to set up a High Court Bench in the capital city within six months of assuming power. It observed that the proposal for a CBI Court in the city failed to materialise despite approval from the Union Government and the High Court Registrar.
TRAC accused the Government of soft-pedalling the proposal to set up an IT corridor in the city. It alleged that the Technocity project was also floundering.
The memorandum appealed to the Government to take up the Theerapadham project aimed at cleaning up the Parvathy Puthanar canal and beautifying the area.
It pointed out that the high profile projects for a Biotechnology Park, Handloom Park, telecom city and Fashion Technology Institute also failed to take off. It observed that the proposals to develop tourism facilities at Kovalam, Poovar, Vellayani, Shanghumughom, Veli, Akkulam, Kadhinamkulam, Papanasam, Ponmudi, Aruvikkara and Neyyar Dam were bogged down. The memorandum said there was a move to start work on the construction of inner and outer ring roads for the capital city. It urged the Government to take up the development of the NH47 bypass, Thiruvananthapuram-Parassala four-lane road, Thycode-Kazhakuttam link road and the Ponmudi road.
Department sought
The memorandum called on the Chief Minister to ensure better coordination between various Government departments for the development of the capital city. It proposed the constitution of a separate department headed by a minister for city development.