India assures Japan to augment port infra

India today assured Japan to augment its port infrastructure, particularly at Ennore and Chennai to facilitate import of automobile components and cars from Japan and at the same time, evinced interest in seeking assistance for its port projects.

The development comes in the wake of Shipping Minister G K Vasan leading a delegation to Japan, which met Minister of Land, Infrastructure, Transport and Tourism, Japan, Akihiro Ohta.

"Vasan discussed several issues relating to logistics, infrastructure and development of port sector in India. He explained the developments that were taking place in India in the ports sector and assured Ohta that concerns regarding infrastructure and connectivity of ports are being addressed expeditiously, " an official statement said here.

Various Japanese Companies have been evincing a lot of interest in enhancing their use of the Ennore Port and Chennai ports.

Assuring to further develop these ports, Vasan said: "Ports in Ennore and Chennai are catering to Japanese car exporters like Toyota and Nissan who have exported about 42,000 and 3 lakh cars, respectively."

Vasan also wanted to know the "possibility of JICA (Japan International Cooperation Agency) assistance to VOC port at Thoothukudi for the upcoming Outer Harbour Project, while thanking the Japanese government for its support to infrastructure projects.

Outer Harbor Project of VO Chidambaranar port was announced in the Budget at an estimated cost of Rs 7,500 crore to be taken up in phases for completion by 2021.

In the phase-I of the project, five berths are proposed to be constructed at an estimated cost of Rs 5,421 crore, resulting in capacity addition of 43.30 million tonne per annum.

With the completion of this project VOC Port will move closer to fulfilling its goal of becoming a hub port.

"Ohta, while acknowledging the existing cordial relationship between India and Japan, assured that Japan will carry forward the momentum. He...Expressed Japan's interest in shipbuilding and recycling industries in India," the statement said.

Both the Ministers stressed the importance of a long-term understanding and cooperation in the maritime sector as part of the overall robust bilateral relations, it said.

Japanese automobile manufacturing companies like Toyota, Mitsubushi, Isuzu, Nissan and Toshiba have been using Chennai Port for importing automobile components for their factories located in Chennai.

Japanese Company Metal One (Mitshubishi group) is importing steel coils, used for automobile, through Chennai Port in the break bulk form. Around 240 Japanese companies have developed businesses in and around Chennai in the last decade.

Japan had earlier shown interest in developing Chennai Bengaluru Industrial Corridor as part of Penninsular Region Industrial Development corridor (PRIDe) of India.

Ennore Port has been identified as one of the main logistic hub in this industrial corridor development while JICA has already commenced a study for the purpose.