Navy close to clinch deal with Port Trust for new berth

KOCHI: Faced with the increasing presence of China in the Indian Ocean region, the Indian Navy is eyeing a major station in the Kochi outer sea, close to the shipping channel.
Talks are on with the Cochin Port Trust for reclaiming about 650 acres to build a facility capable of berthing 10 to 15 warships. The Navy is looking for a berth of about six km where its most modern acquisitions can be based.The total investment is likely to be Rs 3,500 crore.
This strategic move is aimed at minimising reaction time to any eventuality unfurling in the south western region of the country. Sources told TOI that this move will also see the transformation of the Southern Naval Command into an operational centre from its current status of a training station, equal to the status of Western and Eastern Naval Commands.
The facility will also add another layer of security to Kerala, which is witnessing huge investments along its coast in transhipment and petrochemicals field.
The Navy has formally written to CPT in this regard. Sources said initial price negotiations have begun after CPT reacted "very positively'' to the proposal.
The Port is ready to give Navy about 650 acres "including area that has to be reclaimed''. Though the Navy's need was only 450 acres, CPT offered more "provided the Navy strengthens the channel till the southern breakwaters''.
The area offered is worth Rs 2000 crore, sources said. The Navy is also expected to invest about Rs 1,500 crore for building its port.
This is a win-win for the Port as it will help reduce its dredging costs. "Dredging is a huge drag on CPT with about 40% of its profit being used only for this purpose. Once the Navy takes over this area, CPT stands to save more than Rs 60 crore every year as its annual dredging bill is upwards Rs 135 crore," said a CPT source.