The proposed Kollam-Tuticorin ports deal is likely to eat away a major share of cashew imports to the Cochin port, a move that will help Tuticorin consolidate its position as the largest cashew importing port. The deal will help importers ship the raw cashew arriving at the Tuticorin port to Kollam port via sea. Though several reasons could be cited for favouring Tuticorin (V O Chidambaranar Port) over Cochin, the decision by the Customs Department to move the containers arriving at Cochin port en bloc to the container freight stations (CFS) owned by private companies at Vallarpadam has led to resentment among the port users. Cashew imports which bring substantial revenue to the Cochin port may be hit as the importers are against shelling out extra money for service and handling charges at the CFSs. At present, the Tuticorin port imports 60 per cent of the 7.5 lakh metric tons of cashew imported and the rest is handled by the Cochin port. “The deal will help save Rs 5,000-Rs 7000 on each container. Much headway was made because of the active support of the Tuticorin port management,” said R K Bhoodes, chairman of the Federation of Indian Cashew Industries.An exemption given to the cashew industry to move the imported containers en bloc to CFSs was revoked last November. Following this, 15 importing industries joined hands to form the Cochin Port Users Forum and has even threatened to boycott the port if the old policy was not reinstated. At present, the importers have to shell out Rs 5,000 extra per container as service and handling charges for using the CFS. Cashew manufacturers have been holding meetings with the Cochin Port officials, Customs and DP World, the port operator, in this regard. According to Vasanthakumar, executive member of the Kerala Cashew Processors and Exporters Association, in the meeting held on February 10, the officials had assured of a cut in the CFS charges. Apart from the CFS issue, it is said that the lobbying by the trailers have also prevented a similar deal between the Cochin and Kollam ports. However, traffic manager of Cochin port C Unnikrishnan Nair said it was the port that initiated sea route deal with Kollam. “We levy 50 per cent less as port charges for the vessels operating between Kollam and Cochin,” he said. According to industry experts, there were others reasons for discouraging the sea route deals. “Ship liners will not come if there are other industries to support its operations. Besides the base of cashew industry itself is shifting to other states.” said Deepak Shetty, a shipping agent who runs the Jai Narayana Shipping Company.Industry experts said that the share of the Cochin port, which gets 80 per cent of the cashew exports from the state, would also shrink if it did not complete the initiatives taken. Source: New Indian Express