Container movement by rail to the Vallarpadam International Container Transshipment Terminal (ICTT) in Kochi is gradually gaining momentum, with at least two rakes operating every month since May and outward cargo loading opening up new opportunities for rail-based logistics.
The 8.86-km rail corridor connecting the terminal to the railway network, featuring India’s second-longest railway bridge, has remained significantly underutilised since its inauguration in 2011. The corridor had not handled a train for the three years preceding the recent revival.
Container Corporation of India Ltd (CONCOR), a subsidiary of Indian Railways, has resumed container freight services to the terminal. The commencement of outward loading is another significant development, addressing a longstanding limitation under which containers arriving at Vallarpadam had to be returned empty.
Recently, Bharat Petroleum Corporation Ltd (BPCL) loaded four full rakes of bitumen consignments from the terminal, marking an important step towards improving cargo volumes and the commercial viability of rail operations.
“We have also received an inward consignment of car units for export and are in discussions with the company to establish regular rail movement. The company has so far used ports in Tamil Nadu, and talks are underway to shift the movement through Cochin Port,” a senior official said.
Rail Connectivity to Expand Hinterland Reach
Terminal authorities are looking to expand domestic cargo movement to northern and central Indian markets by using containers that would otherwise return empty.
Hari V S, terminal manager at Vallarpadam Container Freight Station, said return domestic cargo services were being extended to destinations including Delhi, Kolkata, Jharkhand, Kanpur, Ahmedabad, Madhya Pradesh, Nagpur, Hyderabad, Chennai and Bengaluru. A new terminal has also been established at Mysuru.
Authorities are particularly targeting traders and manufacturers in Kerala’s industrial clusters to generate additional rail cargo. The Perumbavoor plywood and furniture industry, comprising more than 1,000 companies and producing an estimated 400–500 tonnes of goods daily, is among the key sectors being approached.
Affordable freight rates are being promoted to encourage businesses to use the rail corridor to reach markets in northern India, potentially reducing dependence on road transport.
Rail-based logistics also offers the advantage of functioning as intermediate warehousing, providing customers with additional time to collect goods at destination while reducing congestion on highways. Each rake can potentially replace the movement of up to 90 trucks, depending on cargo and loading configurations.
Vessel Connectivity Remains Critical
Despite improvements in rail operations, industry representatives believe that stronger international vessel connectivity will be essential to unlocking Vallarpadam’s full potential.
Varghese K George, president of the Kerala Steamer Agents Association, said many businesses continued to route cargo through Mumbai and Chennai because of the more assured shipping connections available at those gateways, even when moving cargo through Cochin Port could be cheaper.
He called for government intervention to promote rail cargo movement and reduce overall logistics costs, stressing that improved international shipping connectivity would help drive higher volumes.
A recent development in this direction is the commencement of calls by the MGR IFR Service at Cochin Port. The new service connects Cochin in Kerala and Nhava Sheva in Maharashtra with Fujairah in the UAE, Sohar in Oman and Aden in Yemen on a fortnightly rotation.
“The new port call expands our network and gives customers greater choice and improved reach to key markets in the Middle East,” said Ravinder Johal, COO – Ports & Terminals, DP World Cochin, which operates the terminal.
The revival of rail freight services, the introduction of outward loading and efforts to attract domestic cargo could strengthen Vallarpadam’s role in Kerala’s logistics network. However, sustained growth will depend on securing regular cargo flows, competitive rail freight rates and reliable international shipping connections.