The Hindu : Business : Second container terminal for Chennai port cleared

Online edition of India's National Newspaper
Thursday, Mar 31, 2005

Business

Business

Second container terminal for Chennai port cleared

By Our Special Correspondent

NEW DELHI, MARCH 30. The Union Minister of Shipping, Road Transport and Highways, T. R. Baalu, has granted in-principle approval for the development of a second container terminal in Chennai Port.

According to an official announcement, the project cost is estimated at Rs. 491.76 crores, of which Chennai Port will contribute around Rs. 100 crores and the BOT (Build Operate and Transfer) operator the balance.

The second terminal will provide an alternative to the existing terminal and enhance the services standard. It may bring down the cost of exim trade.

According to estimates by various agencies, the container traffic in Chennai port is expected to reach one million TEUs by 2010-11 and cross two million TEUs by 2020. The Quay length of the terminal will be up to 826 metres consisting of East Quay and South Quay-III. Four hundred metres of this length can be dredged to a depth of 13.5 metres, which will be sufficient to handle fourth generation vessels.

The container terminal is expected to handle one lakh TEUs in the second year, which will reach six lakh TEUs in the seventh year.

The project is expected to generate revenue of Rs. 20 crores in the second year, which is expected to gradually increase to Rs. 120 crores.

Open to new bidders

Chennai Reporter adds:

Addressing a meeting organised here today by the CII (Confederation of Indian Industry) Institute of Logistics, the Shipping Secretary, D.T. Joseph, said: "Chennai will be able to do it faster," while it would be some more time before the neighbouring Ennore port establishes a container terminal.

He said there was enough scope for a container terminal at both ports. While the Chennai Port Trust would provide the immediate alternative, Ennore had a much brighter future in terms of container traffic handling in the long run.

On complaints about the Chennai Container Terminal Ltd. (CCTL) lacking transparency and not managing labour strikes, the Shipping Secretary told the private operator: "No small group can hold you to ransom; at the same time you should do justice to the trade and labour." Even while appreciating CCTL for improving the efficiency of the terminal, he said, "we are not going to let CCTL remain in charge of the entire containers in the region. Everybody has a scope and role to play.''

Later, in an informal chat with presspersons, he said CCTL would not be eligible to operate the new facility in Chennai port nor the one proposed at Ennore. A draft policy of the Ministry had laid down that existing operators were barred from taking up not only a second terminal, but also terminals at adjacent ports.

Expressing the Ministry's inability to stop feeder vessels from levying congestion surcharge, Mr. Joseph said, it would be, however, possible to evolve a consultative mechanism on the issue. A committee under the chairmanship of the Joint Secretary (Shipping), Sushil Kumar, had been formed to examine the issue. Those interested could mail their suggestions to jsship@nic.in, he added.

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