Cochin port road gets green light

NEW DELHI: The Public Investment Board (PIB) has cleared the much-discussed project to provide four-lane road connectivity for Cochin’s International Container Transhipment Terminal (ICTT). The Planning Commission and ministry of finance had earlier raised objections on grounds that a two-lane project was more appropriate. Further, they had questioned the escalation in project cost to Rs 557 crore from the original estimate of Rs 395 crore.

“We have presented to PIB the reasons for increase in original project cost and they have given us the go-ahead,” a National Highways Authority of India (NHAI) official said.

ICTT project is to be developed by DP World on build-operate-transfer (BOT) basis. Construction would commence only when the rail and road connectivity projects begin. In terms of the concession agreement, road connectivity must be completed by April 2009. NHAI is the implementing agency for the project.

The Planning Commission had suggested a two-lane port connectivity project taking into consideration the traffic potential which at the current juncture does not justify four-lane connectivity.

“Four-lane connectivity is a must for the container trailers to be provided with adequate manoeuvrability. It is also imperative to ensure overtaking does not take place,” the official said. Further, the case of Jawaharlal Nehru Port Trust (JNPT) has shown the container terminal’s capacity can match up to increasing demand if connectivity is improved, he added.

NHAI has also explained to PIB the reasons for increase in project cost, after the Planning Commission asked for a review. “We have given our reasons and they have been accepted by PIB. One of the major reasons for cost escalation is increase in land acquisition cost in Kerala. It is the district collector who negotiates the rates with the landowners. We have followed their guidelines to minimise any litigation in land acquisition,” the official said.

Apart from land acquisition costs, increase in the cost of land reclamation, civil works and cost of shifting utilities have increased the cost from Rs 395 crore to Rs 557 crore. The road connectivity project will be developed on engineering-procurement-construction (EPC) basis.