The Hindu Business Line : "We have improved our efficiency" — Mr K. Suresh, Chairman, Chennai Port Trust

Things are looking up at the Chennai port. The port lost nearly nine million tonnes of cargo when the Tamil Nadu Electricity Board (TNEB) moved its coal requirements to Ennore port in 2001. However, it regained the lost cargo (it handled 1.78 million tonnes of thermal coal and 5.51 million tonnes of coking coal) and volume in 2004-05.

The port also achieved a record performance in throughput by handling an all-time high of 43.80 million tonnes during fiscal 2004-05, against 36.71 million tonnes in 2003-04 and 33.69 million tonnes in 2002-03. In 2001-02 the port handled 36.12 million tonnes and 41.22 million tonnes in 2000-01.

Mr K. Suresh, Chairman, Chennai Port Trust (ChPT), spoke to Business Line on the port's performance and plans, including setting up a second container terminal.

Excerpts from the interview:

What reasons do you attribute to last year's performance?

It was a great year for us. We handled record cargo and did well financially (provisional operating income for the year was Rs 396.48 crore against the estimated Rs 387.34 crore and actual income of Rs 368.56 crore for the year 2003-04). The increased growth was due to a surge in handling of bulk cargoes such as coal, petroleum, oil and lubricants and iron ore.

We also improved our efficiency. For instance, the average pre-berthing detention time was maintained at 0.9 hours. The port now has berths waiting for ships, rather than ships waiting for berths. This is despite the fact that last year there was serious congestion of iron ore vessels in anchorage with vessels waiting for cargo.

The port trust implemented a transparent system of rake sharing among the exporters. This eliminated congestion in the anchorage.

You also had good volume in iron ore.

Yes, we maintained our iron ore volume. The port registered a 6.51 per cent growth in iron ore traffic over the previous year. In 2004-05, the port handled 9.60 million tonnes (9.01 million tonnes). This was despite the fact that tippers at the iron ore terminal were not doing well.

However, the synchronised movement of cargo between rail and sea reduced the delays. The port exceeded the designed capacity of these berths for the cargo. The demand for iron ore continues to be high, and we expect to have similar growth this year.

With plans to move iron ore to Ennore in a few years, what are the options left for the Chennai port?

We are focussing on cleaner cargoes, such as raw sugar, steel coils, steel pipes, gypsum, corn and project cargoes, including windmill parts. Last fiscal, the port regained the cargo of wooden logs. We will also concentrate on garments, which is likely to see a 20-25 per cent in exports from the country.

What about automobiles?

We expect to handle one lakh cars in 2005-06. In 2004-05, the port handled 80,631 cars, compared to 39,874 (Hyundai) cars the previous year. The port handled 42 car carriers in 2004-05 compared to 22 the previous year. We became the number one port in terms of handling maximum number of cars.

Besides Hyundai, other automobile manufacturers such as Volvo have started exporting their heavy commercial vehicles through the port. Volvo exported 150 heavy commercial vehicles last fiscal.

Did the agreement with Chennai Petroleum Corporation help the increase in POL handling?

Yes, the port handled 11.70 million tonnes of POL in 2004-05 compared to 9.20 million tonnes in the previous year. The synergy of the agreement between CPCL and the port trust resulted in an increase in POL traffic by 27.15 per cent.

When is the second container terminal expected?

It is expected in November. The terminal will handle about one lakh TEUS (twenty foot equivalent units) in the first year of its operation and gradually increase to six lakh TEUs in less than five years.

The terminal will decongest the existing terminal operated by the Chennai Container Terminal.

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