24 March - 30 March 2025

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A second Boston tea party

Centuries have arguably been squandered. When the world thinks of major ports, names like Shanghai, Singapore, Dubai, Rotterdam, and Los Angeles spring to mind. Others follow, but it is almost certain that no Indian port features prominently in these top rankings. Many in India understand the reasons for this, and many are also aware of potential solutions. Yet, these issues have largely remained unaddressed until now.

Consider a recent example from this March. A headline from 7 News WHDH in America on March 24th read: "Largest ship to ever visit Port of Boston docks at container terminal". This marked the culmination of efforts by the port since 2022, enabling the 16,000 TEU (twenty-foot equivalent unit) vessel, MSC Verona, to dock there for the first time. Notably, the same vessel, the Verona, had called at Trivandrum Port (TRV) on January 16th without generating similar fanfare.

The Boston Tea Party is a familiar historical event. On December 16th 1773, a group of colonists, disguised as Native Americans, boarded three British ships in Boston Harbour and threw 342 chests of tea into the water to protest against British taxation policies. This event is recalled here to highlight the age and history of the port. It is significant that a port active for 250 years is now celebrating the arrival of a 16,000 TEU ship. This is because they understand the economic benefits conferred by larger ships and deeper waters. Consequently, such achievements are celebrated by the local media.

Meanwhile, Trivandrum Port awaits, without ceremony, the potential arrival of one of the world's largest container ships, the MSC Irina (24,346 TEU). The Irina, currently sailing between Europe and Singapore, is expected to call at Trivandrum Port on her return journey. Already, huge MSC vessels such as Mia (23,000 TEU), Amelia (23,964 TEU), and Michelle (23,936 TEU) have called at the port without fanfare. This contrast brings to mind the centuries of potential and achievement that India may have missed, while Boston celebrates its own modern-day "tea party".

Customs patrolling starts

As part of efforts to expedite gateway cargo operations, a Customs patrolling boat has berthed at the port. The customs office had officially commenced operations two days prior. The arrival of the Cat IH No. 8 patrolling boat is a subsequent step in this process.

A customs team, led by an Assistant Commissioner or Deputy Commissioner, will begin operations here in the coming days. Initially, the team will comprise an Inspector and a Superintendent. Customs authorities have stated that a full-scale team will be appointed soon.

The Kerala government has assured that gateway operations will commence by mid-July this year. According to the countdown in the newsletter based on this assurance, 107 days remain. The Port Minister gave the assurance of operations within 120 days in the Kerala Assembly on March 18th.

A new feeder service too

In addition to the approximately 15 existing feeder services, MSC has launched a new service connecting TRV, named the Arabian Sea Shuttle. This service connects ports in countries including Bahrain and Saudi Arabia. The first vessel on this service, the Zhong Gu Bei Hai, has already departed from Jubail Port in Saudi Arabia. It is expected to arrive at TRV on April 5th.

Currently active services include the East Africa Feeder, Chittagong Feeder (1, 2, 3), Indian Ocean Relay Service (1, 2, 3), Haldia Shuttle, Salalah Feeder, Malabar Express, Djibouti Service, Colombo Kolkata Feeder (1, 2, 3), and the Vizhinjam Shuttle. Beyond these scheduled services, TRV also receives ad-hoc calls from extra vessels, including mother vessels.

Marching towards a record March

March is set to be the busiest month yet in the 2024-25 financial year (FY25) for TRV. The previous record was set in January 2025, with 43 vessel calls. With the arrival of the feeder vessel AS Alva from Salalah Port, March surpassed this with 44 vessel calls. On the night of March 29th, the MSC Michelle docked as the 50th vessel of the month. The question now is how much higher this record will climb before the month ends. While the 50th vessel was berthed, four more ships were waiting at anchorage. It is clear that March is heading towards a significant record compared to previous months. MSC had previously indicated a target of 60 vessel calls per month for TRV.

This month also marks the end of TRV's first financial year of significant operation. The total number of vessel calls for the year is certain to exceed 240. Major MSC services like Jade, Dragon, and African Express have also commenced regular calls. That this level of activity is occurring at a port with only two berths and before the commencement of gateway cargo operations is considered a positive sign.

Exim policy shift

Henceforth, closer attention should be paid to international trade developments. This is because the development of Trivandrum Port elevates the region's standing in international trade. The reciprocal tariffs concerning American trade, mentioned in the previous newsletter issue, come into effect this week. India has opted for a co-operative approach with America, avoiding the confrontational path taken by countries such as China, Canada, and Mexico. As part of this, India has significantly reduced tariffs on certain American exports. The tariff on Bourbon whisky, previously 150%, has been lowered to 100%. Tariffs on agricultural products like cranberries, almonds, and walnuts have also been reduced.

Concurrently, India is requesting America to ease restrictions on the export of Indian rice, pomegranates, and grapes. In 2024, America exported $452m worth of alcoholic beverages to India. This figure is expected to increase. Trivandrum Port, with its capability to handle direct cargo shipments, should aim to capitalise on this opportunity.

A practical move

Has the prospect of engaging in trade with a multinational corporation (MNC) ever featured in your personal or business aspirations? Recent thinking from the central government ought to encourage greater consideration and ambition on this front.

Anticipating another harsh summer, similar to previous years, the government aims to increase the market availability of air conditioners and refrigerators. To achieve this, it is considering policy relaxations, potentially extending even to Chinese companies, and promoting joint ventures with Indian firms. Currently, domestic production meets only about 35% of the demand for air conditioner compressors and 65% for refrigerator compressors. This significant shortfall is the primary driver behind the government's swift policy reassessment. Import regulations are consequently being eased to manage demand during the current summer season. Notably, the government has also decided to relax the mandatory Bureau of Indian Standards (BIS) certification for importing compressors of all capacities from China for a period of one year.

This presents an opportunity to leverage existing connections with China. Trivandrum Port (TRV) has now established itself as arguably India's sole port capable of receiving goods directly from Chinese ports in as little as ten days – a capability underscored by the presence of the MSC Michelle, currently berthed at the port.

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