The Hindu Business Line : Chennai Port users moot new container terminal

(From left): Mr S. Vijayan, Development Commissioner, Madras Export Processing Zone; Mr M. Raman, Chairman, Chennai Port Trust; Mr B.S.V. Murthy, Commissioner, Customs (Export); and Mr Rafeeque Ahmed, President, FIEO, at a meeting to discuss the problems at Chennai Port on Thursday. — Shaju John

Chennai , July 22

WITH frequent labour problems at the Chennai container terminal in the last few months, there is an urgent need to create another terminal in Chennai. This will help port users shift to the other terminal in case of a problem at the Chennai container terminal, and vice-versa.

Further, the concession agreement entered into between the Chennai Port Trust (ChPT) and Chennai Container Terminal Ltd should be amended to include a clause to penalise the private operator for inefficiency in work, Chennai port users said at a meeting here on Thursday. Organised by Capexil, the meeting discussed problems at the Chennai container terminal.

Mr M. Raman, Chairman, Ennore Port Ltd and holding additional charge as Chairman, ChPT, said that private or public monopoly is not good for the trade. "If situation demands, we need to re-look at the concession agreement to include efficiency parameters. However, this should be done without sending wrong signals to potential investors," he said. The CCTL should take care of its human resources and procedures in the short term and infrastructure in the long term, he said.

Mr S. Vijayan, Development Commissioner, Madras Export Processing Zone, said, "privatisation is welcome. But, it need not be a panacea to all our problems. Monopoly by a single company has held all of us to ransom. We need more competition." He suggested that, like MEPZ, the port should also be treated as public utility services to prevent workers resorting to strikes without giving proper notice.

Mr. R. Veeramani, Chairman, Granite, Natural Stones Panel, Capexil, said that various government agencies, including the port trust, MEPZ and Customs, should intervene and solve a major impasse that continues for more than two days in the container terminal. The CCTL should be more efficient and should benchmark its productivity with the Tuticorin port, where PSA-Sical is running the container terminal.

According to Mr Ashok Thakkar, representing the Hindustan Chamber of Commerce and Industry, CCTL should be made accountable for its inefficiency, and should unconditionally refund the storage charges it collected from the trade during the strike period. Another container terminal at Ennore should be taken up immediately as the terminal in Chennai is nearing saturation point. The iron ore berth, which will be given to CCTL, is stuck with the Chennai port till 2008 and there will be shortage of space inside the terminal, he said.

Mr G. Raghu Shankar, also of Hindustan Chamber, said that at present neither the Centre nor the port trust can interfere in the functioning of CCTL or penalise the private operator for inefficiency in work. There is an urgent need to build a parallel container terminal, and only through competition port users would benefit by getting competitive cost, he said.

New container berth on anvil

The Chennai Port Trust (ChPT) plans to convert a general berth in the Chennai port into a container berth.

This is to supplement the efforts of Chennai Container Terminal Ltd, said ChPT's acting Chairman, Mr M. Raman. The ChPT will invest about Rs 50 crore in the project to decongest the container terminal, he said.

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