Chennai port road: Logistics firms losing Rs 75 lakh a day due to delay

The delay in implementing the Chennai Port Ennore Road Connectivity project is resulting in a loss to the tune of Rs 75 lakh a day for various logistics operators.

The project was conceived in 1998 at an estimated cost of Rs 150 crore. Irked by the delay, the Trailer Operators Association has decided to go on a strike from December 20 while the Container Freight Station (CFS) operators will go on an indefinite strike from January 10.

The project envisages improvement of a 30 km road network in north Chennai connecting the CFS, which handles containers for the Chennai port. A special purpose vehicle, Chennai-Ennore Port Road Company, was formed in 2003 with the Chennai Port Trust, National Highways Authority of India (NHAI) and the Tamil Nadu government as partners. Subsequently, one of the stakeholders in the SPV, the Ennore port, has pulled out from the project. It has come to a standstill due to lack of finance and rehabilitation and settlement of the 1,800 people living in that area. The rehabilitation package is estimated to cost Rs 140 crore.

Speaking to reporters, Umesh M Pujara, president of the Consultative Committee of City Chambers of Commerce, said the delay in execution has hiked the project cost to Rs 600 crore now. The number of vehicles plying on the road has increased to 4,350 a day now compared with 2,050 a few years ago. The industry could have generated Rs 30,000 crore in the last five years if the connectivity was good, he said.

The Chennai Container Terminal at present handles 1,00,000 boxes a month but this could have increased by 60 per cent if the road was in good shape. It would have brought Rs 1,000 crore revenues for the government as the companies pay Rs 2.5 lakh duty on each container.

All India Motor Transport Association secretary R Sugumar said lorry owners were spending Rs 50 lakh a day on fuel, service and maintenance and overtime salaries due to the circuitous route they have to take now.