DPI looks to Vallarpadam

Indias Cabinet Committee on Economic Affairs has given the nod to Dubai Ports International (DPI) to take over management of the Rajiv Gandhi Container Terminal (RGCT) at the port of Kochi (Cochin) on the understanding that it goes ahead with construction of a proposed new transhipment terminal at Vallarpadam as soon as possible. Under the initial 30-year concession agreement, DPI will commence operations at RGCT for a period not exceeding ten years. However, if traffic at that terminal reaches 400,000TEUs, it will be incumbent on the concessionaire to switch operations to a greenfield site at Vallarpadam. If, after eight years and three months, traffic has not reached the agreed figure, DPI would be allowed to walk away from the contract after ten years.