The Hindu : Tamil Nadu News : Chennai Port Trust considering second container terminal

Online edition of India's National Newspaper
Monday, Nov 08, 2004

Tamil Nadu

Tamil Nadu

Chennai Port Trust considering second container terminal

By N. Ravi Kumar

CHENNAI, NOV. 7. The Chennai Port Trust is considering setting up a second container terminal, a facility the export-import trade has been looking forward to for sometime.

The process of seeking approval for the project will be initiated soon, a senior port trust official told The Hindu yesterday.

Declining to specify a timeframe for the completion of the project, he said a proposal would be placed before the board of trustees shortly. Commissioning of a techno-economic feasibility study, getting the nod of the Shipping Ministry and statutory agencies and discussions with the trade to assess its requirements would follow.

Discussions have begun at the top-level. The need for a facility parallel to the one managed by the Chennai Container Terminal Limited was driven by the relatively better scope for revenue generation through container handling, emphasis on a clean port and the demands of the trade.

Labour problems

The demand for an alternative terminal, either at the Chennai or Ennore port, increased when the operations at the existing facility — privatised three years ago — came under strain this year due to labour problems. Industry bodies and user associations have expressed concern at the frequent labour strikes as they not only affected the delivery schedules and revenue, bottomline of the exim trade, but also the reputation in the international market.

The trade's demand, however, assumes greater significance as the Chennai Port Trust, based on its agreement with the private management of the existing terminal, becomes eligible this month-end to set up the second facility.

Exercising its option, the official said, would be in tune with the future growth plans, especially from the perspective of becoming a clean port. Labour strikes this year, he said, was also a reason for considering the option.

The visit by a delegation from the port of Zeebrugge in Flanders, Belgium, yesterday was a shot in the arm. It "evinced a keen interest in the proposal of Chennai Port Trust to develop a second container terminal." An official communiqué said the team, led by the chairman and managing director of the port of Zeebrugge, Joachim Coens, held discussions with the Chennai Port Trust chairman, K. Suresh, and other officials to explore the possibility of bilateral collaborations.

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