Chennai Port draws up business plan
UK-based consultants Deloitte Tohmatsu has submitted its report to Chennai Port Trust on a business development plan which has a target to expand container handling to five million TEUs (twenty-foot equivalent units) by 2027 from the present 8.85 lakh TEUs.
Similar business plans were being developed for major ports under the instructions from the Prime Minister’s Office to the Union Shipping Ministry. The UK consultants had given its final report in March 2007 and the ChPT was studying it to forward the same to the Ministry along with more suggestions.
‘To achieve long-term targets set for 2027, we many need an investment of Rs 4,500 - 5,000 crore. But for the short-term targets to be realised by 2012, we need an investment of nearly Rs 1,500 crore,’ said K Suresh, chairman, ChPT. All efforts were on to make the Chennai Port into a full-fledged container terminal catering to the needs of hinterland for economic growth. He was speaking at a press conference yesterday to detail the performance of the Chennai Port in the last year. ‘We will present the business plan along with few more suggestions to the Ministry shortly,’ he informed.
For the year 2006-07, the port handled a total cargo of 53.41 million tonnes, a growth of 13 per cent from 47.25 million tonnes recorded in the previous year. The cargo handled was higher than the Ministry’s target of 52.20 million tonnes set for the year ended 31 March 2007. Out of the throughput of 53.41 million tonnes, exports accounted for 22.94 million tonnes (20 MT in 2005-06) and imports stood at 30.47 million tonnes (27 MT), thus recording a growth of 14 per cent and 12 per cent respectively.
The container traffic reached an all time high of 14.16 million tonnes (8.85 lakh TEUs), a growth of 20.5 per cent from the last fiscal.
Chennai Port was the largest exporter of cars among Indian ports with a record performance of 1.14 lakh units in 2006-07, a growth of 18 per cent from 1.02 lakh units in the previous year. An agreement with Hyundai Motor India Ltd was signed recently to increase the export of cars through Chennai Port. ‘The agreement offered incentives and concessions to HMIL for their export of cars, especially in the wharf age and vessel-related charges based on the number of cars being exported by the company,’ he said.
The operating income of the port stood at Rs 531 crore (provisional), a 23 per cent growth from Rs 432 crore recorded in 2005-06. While the operating expenditure was Rs 349 crore (provisional), a 11 per cent rise from Rs 313 crore. Net surplus after tax was Rs 156 crore as compared to Rs 134 crore netted in the last fiscal.
During the 125th year fete at Chennai Port, a foundation stone was laid by Chief Minister M Karunanidhi for a second container terminal. Project work was on the second terminal which would be commissioned in 48 months or by March 2009, informed Suresh. ‘A multilevel car-parking would be completed and car makers like Hyundai, Mahindra - Nissan and Renault have shown interest in constructing the facility at the port,’ he said. Further, he said all steps were being taken to shift coal and iron ore handling from ChPT to Ennore Port to make the former a clean and green port.
As one of the partners in the Special Protection Vehicle (SPV) along with National Highway Authority of India (NHAI) and Tamilnadu government, the ChPT would contribute Rs 72 crore as equity capital to Rs 309 crore project of improving connectivity of two ports (including Ennore Port Ltd) with State and National Highways. Expected to be completed by 2008, the project would substantially improve the road-bound cargo to and from Chennai Port.-o–C-Chennai Port Trust chairman K Suresh along with deputy chairman G J Rao at a press conference in Chennai yesterday.
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