Calling the step a "gamechanger", Gadkari said that Tuticorin has the potential to become a "major industrial hub".
Moneycontrol News
Union Minister for road transport and highways and shipping, Nitin Gadkari, on December 12 flagged off first container mainline vessel from Tuticorin, opening direct shipping route to eastern countries.
Calling the step a "gamechanger", Gadkari said that Tuticorin has the potential to become a "major industrial hub".
"In order to make the Tuticorin port a mainline port, we have redesigned the development project of Rs 2,000 crore and now the deepening of the port would be done in less than Rs 500 crore, after which all vessels with draft of 16 meters can call on the port," he said.
Centre expects that the port, once made operational at commercial level, will see savings of transshipment cost worth $50 per container.
"At present, containers from Tuticorin to Far East countries viz Malaysia, Singapore, China and Hong Kong are transited by the feeder vessels to Colombo where they are further connected to the mother vessel. With Mainline call being done directly at Tuticorin, there will be saving on account of the transshipment cost," a statement by the ministry said.
The government has made investment of Rs 1,500 crore at the port to make it capable of handling extra vessel capacity "to reduce logistics cost for export-import trade and domestic trade under Sagarmala (government's flagship programme to promote port-led development)".
Gadkari also said that the government will set up an industrial park at the port, similar to JNPT, to leverage on the "competitive Port tariff, improved infrastructure and customer friendly approach".
