The Indian Ministry of Ports, Shipping and Waterways (MoPSW) has decided to fund a Rs 300 crore ($38.8 million) project to deepen the channel of Cochin Port, improving the economic position of the port by taking advantage of traffic congestion in Sri Lanka.

The MoPSW expects an increase in transhipment activity at the Port of Cochin, India's only International container transhipment terminal, following economic and political turbulence and reports of congestion at the Port of Colombo (ICTT).

The decision to deepen the canal from 14.5 to 18 meters is part of an effort to reduce India's reliance on Colombo for shipping and receiving container freight.

Due to the ongoing crisis, the throughput volume at the ICTT has already increased to 13,609 TEU in March 2022, from 8,394 TEU the year before, according to Cochin Port statistics.