On the 16th February 2005, DP World announced that it has formally signed an agreement with the Cochin Port Trust (CoPT) to construct, develop and operate an International Container Transhipment Terminal (ICTT) – An India Gateway Terminal – at Vallarpadam.

The project was formally launched with the laying of the foundation stone by Mr. Manmohan Singh, the Hon’ble Prime Minister of India. The ceremony was attended by Dr. Jacob Thomas, Chairman, CoPT and Mr. Sultan Ahmed Bin Sulayem, Executive Chairman, DP World. The proceedings were overseen by the Hon’ble Minister of Shipping, Government of India, Mr.T.R. Baalu, the Hon’ble Chief Minister for Kerala, Mr.Oommen Chandy and His Excellency, the Governor of Kerala, Mr. R.L. Bhatia.

‘Vallarpadam’ is the largest single operator container terminal currently planned in India and the first in the country to operate in a special economic zone. The new terminal will make Cochin a key centre in the shipping world reducing India’s dependence on foreign ports to handle transhipment. Approval for the agreement was given by the Cabinet Committee of Economic Affairs of the Government of India, Ministry of Finance and meanwhile, the DP World will manage and subsequently transfer its operations at the ‘Rajiv Gandhi Container Terminal’ (RGCT) in Cochin Port to the new terminal upon its completion. The DP World has been granted a 38-year concession for the exclusive operation and management of the site.

Construction of the Terminal is expected to be completed in four years and commercial operations to be started within a year of completion. The first phase of the new Terminal will have a capacity of 1 million TEUs which consists of 600 metres of quay, six Super Post Panamax Quay Cranes and an on-dock railhead serviced by rail-mounted gantry cranes. Construction of a new four lane bridge and highway access to the ’golden quadrilateral’ road network is already underway. Vallarpadam will be expanded ahead of demand to eventually total 1.8 km of quay and at least 16 Quay Cranes capable of handling the largest vessels afloat, with associated yard-handling equipment and a capacity of 3 million TEUs.

The total cost of the project is estimated at US$500 million and will be funded by DP World through non-recourse debt funding. The debt is provided by a consortium of banks led by the Infrastructure Development Fund Company (IDFC), set up to provide growth capital for infrastructure projects in India.

With the finalisation of this agreement, the DP World has taken over the management and operation of the existing container handling facility at the RGCT prior to the transfer of its operations to the new terminal upon its completion. DP World will actively manage and invest in the facility focusing on improving productivity, investing in quayside and yard-handling equipment and implementing state-of-the-art IT systems. DP World has estimated that the total initial investment required will be approximately US$20 million which includes the immediate provision of four RTGs and two Mobile Harbour Cranes to the Terminal - to improve yard handling, truck turnaround time and quayside operations.

Strategically located on the main east-west global shipping lines and offering draft of about 16 m, Cochin is destined to develop as the premier gateway to southern India, as also offering an alternative to Sri Lanka and Singapore for containers being transhipped for the Indian market.