NHAI likely to wind up port road connectivity project

The Chennai port-Ennore road connectivity project has hit a roadblock with the National Highway Authority of

India (NHAI) sending feelers to the Chennai Port Trust (ChPT) that “it would wind up the project” if the latter fails to pay its share of Rs 300 crore for the proposed project. NHAI has set a deadline of October 20, to the latter to release the amount, according to sources.

The Ennore Manali Road Improvement Project (EMRIP), conceived in 1998, has been under implementation for the last 10 years. The project envisages improvement of a 30-km road network in north Chennai, which connects all the container freight stations (CFS) handling containers for the Chennai port.

According to sources, NHAI’s decision came after a meeting attended by the ChPT’s chief engineer in Delhi last week. It was learnt that NHAI had informed ChPT to release their revenue share, which at present is estimated to exceed Rs 300 crore.

This is in addition to the debt of Rs 110 crore, for which ChPT has already given its concurrence to NHAI. ChPT had earlier paid an initial amount of Rs 38 crore, which is part of Rs 300 crore.

Confirming the development that the port trust had received a letter from the NHAI and the same had been forwarded to the ministry of shipping for clearance, ChPT chairman Subhash Kumar said, “Our equity share has gone up in the project and we are awaiting a clearance from the ministry for the remaining Rs 240 crore.”

The project is estimated to be around Rs 600 crore, of which only Rs 267 crore is the drawing and construction cost. According to industry experts, when the project was conceptualised in 1998, the project cost was around Rs 100 crore which has now increased to Rs 600 crore. The delay in the project is resulting in a Rs 75 lakh loss for various logistics operators every day. Also, 350 accidents were reported in which 30 people died last year alone.

According to industry representatives, vehicle movement has now increased to 4,350 a day as compared to 2,050 a day. Had the road been properly laid, the trade could have generated Rs 30,000 crore business in the last five years, they said.

Another trade representative said the Chennai Container Terminal, inside the Chennai port, currently handles 100,000 boxes every month. This could have gone up 60 per cent if the connectivity had taken shape. It could have also brought in revenues of Rs 1,000 crore for the government since companies have to pay Rs 2.5 lakh duty for each container.

In 2003, a special purpose vehicle (SPV) — Chennai-Ennore port Road Company — was formed along with NHAI and the Tamil Nadu government, in which ChPT was one of the partners.

Subsequently, one of the stakeholders of the SPV — Ennore port — has pulled out from the project.