Prime Minister Manmohan Singh today dedicated to the nation the first phase of the Rs 6,250 crore International Container Transhipment Terminal at nearby Vallarpadam island that would help exporters access mainline container vessels calling at the port.

Describing the project as a 'long awaited milestone' in the development of the country's logistics infrastructure, Singh said "it is a symbol of how public-private partnership can contribute to public good."

Singh, who had laid the foundation stone for the project in February 2005, said "I am delighted to see how well this state-of-art terminal has come up."

The absence of a global hub port and the lack of transhipment facilities had put the country's trade at a disadvantage, he said.

Noting that about 60 per cent of India's export and import containers were transhipped through outside ports like Singapore and Colombo, he said it cost an additional expenditure of USD 300 per container and an extra 7-10 days of transit time.

With the new facility located at the Special Economic Zone at Vallarpadam island, Indian exporters can now access mainline container vessels calling at one of the most well located ports of India.

The construction of the terminal is the centre piece of a comprehensive plan to develop Kochi as an economic and logistical hub of the region, the Prime Minister said.

The project area has been declared SEZ with a road link to connect Vallarpadam with two national highways, besides a 8.5 km rail link connecting the terminal to the railway network.

The navigation channels were being deepened which was a challenging task involving the removal of nearly 26 million cubic metres of soil, Singh said.

Stressing the need to vastly increase the use of fuel efficient, environment friendly and safe modes of transport such as inland waterways, Singh said this mode of transportation was very suitable for bulk, containerised and hazardous cargo as is the case world wide.

Pointing that the project symbolies the 'keen interest of the United Arab Emirates in investing in India and in promoting stronger business and people-to-people ties between the two countries', the Prime Minister said adding the terminal will be an 'enduring symbol' of the close ties India wishes to build with its extended neighbours in West Asia, including the UAE.

Kerala with its huge diaspora of skilled and enterprising workers, engineers, doctors and other professionals was ideally suited to become the gateway for these investments, he said.

Praising the state, he said Kerala is well known not only for its visual beauty, but also for the talent and industry of its people. Kerala already leads the country in many important social indicators of development. 'There is no reason why the rich human potential, geographical location and resources cannot be exploited to built kerala into a front ranking industrial state of the country', he said adding the state should become a model for other states to emulate and follow.

The Prime minister said Kochi was well on its way to becoming an important and attractive investment destination not only in kerala but for the region as a whole. 'I visualise in the future, the emergence of several port based service industries and processing centers in its proximity that will take advantage of the reliable and economical logistics to be provided by the terminal.