Ship repair facility likely to come up at Chennai port

Dubai Ports evinces interest in participating in the project

A ship repair facility on built-operate-transfer (BOT) basis is expected to come up at the Chennai port.

K Suresh, chairman of the Chennai Port Trust, on the sidelines of the golden jubilee meeting of the Chennai and Ennore Port Steamer Agents' Association, said the port did a feasibility study and had sent the proposal to the Union ministry of shipping seeking in-principle approval for the project.

He said that the project would require an investment of Rs 150 crore and leading organisations such as Dubai Ports evinced interest in participating in the project. They are also keen on joining hands with the domestic firms. The facility will provide employments to 4,000-5,000 people and will have space to repair 15-20 ships a month.

The Chennai port's investment would be restricted to Rs 1 crore and other details such as sharing of revenue with the operator and other formalities would have to be finalised, he added.

Earlier inaugurating the golden jubilee celebrations, Suresh said that financial bids for the second container terminal would be opened soon. The port is working with other agencies to introduce green channel facility, particularly for container traffic. This initiative is expected to result in reducing transaction cost and time.

Besides the second container terminal, the Chennai port was also working on a port connectivity project with National Highway Authorities of India. In Ennore Port too, a marine liquid terminal, rail connectivity project, iron ore terminal, among others were expected to come up, said Suresh, who also holds additional charge as chairman and managing director of Ennore Port.

He also said that the Chennai port's cargo handling capacity was poised to touch 50 million tonnes by the end of this fiscal from about 36 million tonnes two years ago. "We are just 10 million short of the target," he added.

J K Batra, chief commissioner of customs, said that the port could handle 40-50 per cent more with its existing infrastructure and other facilities, if all the agencies involved worked with a single objective of serving the trade by sacrificing their individual interests.

Stating that its association members were providing the vital link among shipping line, trade and port, A Lawrence, chairman, Chennai and Ennore Port Steamer Agents' Association, said the association had set a target to achieve 1 million TEUs of container traffic by 2007 and 2 million TEUs by 2010.