Kochi port invites expression of interest for free trade warehousing zone on BOT basis
Staff Reporter KOCHI, Oct 20,2011
The Kochi Port has invited expression of interest from firms for participating in global competition for setting up a Free Trade Warehousing Zone (FTWZ) on BOT basis at the port area.
The project would entail developing a FTWZ on a 102 acres of land located at the southern end of the Willingdon Island. The firm selected through the tender process will be offered co-developer status. The FTWZ will provide world-class facility for warehousing various types of products/ logistics and distribution centre/ handling and transportation equipment/ one stop clearance for import and export of goods/ efficient environment for import and trade facilitation/ commercial office space.
The FTWZ can cater to various Exim trade such as tea and coffee, cashew, spices, electrical and electronics, food and beverages.
The key benefits of FTWZ are: The duty deferment positive impact on working capital for goods requiring longer storage time; local tax exemption (CST, VAT etc) service tax exemption on all activities within the FTWZ (including labour, rentals, etc.) 100 per cent income-tax exemption for developers and users of the zone; re-export without duty implication; shared warehousing and equipment, thereby reducing the capital expense requirement; reduced time in customs clearing; improved logistics connectivity leading to reduced delivery time etc.
The port has a location advantage by virtue of it lying on the busy direct sea route from Europe to Australia and Far East. Besides, the proximity of new ICTT at Vallarpadam with modern infrastructure makes it ideal for the operation of an FTWZ. The ICTT is projected to handle about 2.5 m TEUS by the year FY-2015.
The FTWZ is envisaged to function as international trading hubs which serve as key links in global logistics and supply chains servicing both India and the world. The key differentiator between a FTWZ and a standard warehousing is a unique product offering wherein the benefits of a free zone are integrated with professionally handled, high quality physical infrastructure, thereby, providing an ideal platform for the successful proliferation of trading and warehousing companies in a globally competitive scenario.
The EOI document in the prescribed form duly completed and signed should be submitted to the Traffic Manager on or before November 21.