The Hindu Business Line : Chennai port handles 57 mt cargo in 2007-08

Chennai, April 4 The Chennai port handled an all-time high of 57.15 million tonnes of cargo during 2007-08, surpassing the Shipping Ministry’s target of 55.86 mt and registering a seven per cent increase over the previous year’s handling of 53.41 mt.

“It was a record performance despite the inclement weather that affected port operations for a few days last year,” Mr K. Suresh, Chairman, Chennai Port Trust (ChPT), told newspersons. For 2008-09, the target is 62 mt, he said. Of the total throughput, export was 24.31 mt (22.94 mt) and import was 32.84 mt (30.47 mt).

Container traffic in 2007-08 at Chennai Container Terminal operated by Dubai Ports reached an all-time high of 1.12 million TEUs, an increase of 27.41 per cent over the previous year. Next year, the terminal will achieve its full capacity, a year ahead of time, Mr Suresh said.

The port retained the position as the premier car exporting port recording an all-time high performance of handling 1.37 lakh cars in 2007-08, a 20 per cent increase over last year. It is likely to handle around five lakh cars in the next two to three years with various manufacturers, including Hyundai, increasing their exports, he said.

Mr Suresh said the provisional net surplus after tax for 2007-08 was Rs 257 crore (Rs 196 crore) on operating income of Rs 675 crore (Rs 535 crore).

Chennai mega terminal

Mr Suresh said the ChPT will soon call for ‘request for qualification’ proposals from private operators for the Chennai mega terminal planned at a cost of Rs 3,105 crore to come up in the outer harbour.

The technical feasibility and financial viability reports are ready for the terminal, which can handle five million TEUs a year, he said.

The ChPT will go in for viability gap funding from the government’s infrastructure fund or forego revenue share and include the tariff in the vessel-related charges. This will make the project more attractive for private operators.

It will take 3-4 years for the project to start, and by then, the two private container terminals will together handle around two million TEUs. As per the concession agreement signed with PSA-Sical, till the second container terminal handles one million TEU or completes four years of operations, whichever is earlier, a competitive facility shall not come up at the port, he said.

The mega terminal will have two new breakwaters with a total length of around 4 km; continuous quay length of 18 m alongside depth and basin area of 300 hectares and back up area of 100 hectares. The terminal can handle ultra large container ships of over 15,000 TEUs, Mr Suresh said.

Second container terminal

Mr Suresh said the second private container terminal will commence operations in April 2009. The terminal will have an annual handling capacity of 1 million TEUs. The project cost is Rs 495 crore and the revenue share offered 45.801 per cent.