Kamarajar Port workers protest Centre’s move for stake sale

Employees and contract workers of Kamarajar Port Ltd (KPL) have opposed any move by the government to privatise the port.

In the morning, around 100 employees held an hour-long protest outside the port’s main gate at Ennore, about 25 km north of Chennai, opposing the government’s move to divest stake through a ‘strategic’ sale. Employees protested from 9 to 10 am, but work was not disrupted.

“This is the first step in our battle to save the port from being sold to a private player,” said a protesting port officer.

“We are shocked by the government’s decision to go for strategic sale of a highly profitable port that is worth over ₹20,000 crore,” he said.

KPL was incorporated under the Companies Act, with the Centre holding 67 per cent and the remaining 33 per cent held by Chennai Port Trust. Media reports say the government wants to divest 100 per cent in the port.

KPL employees said Gujarat’s Adani Ports could be the most likely suitor in case the sale happens, as it is the BOT (build, operate and transfer) operator to run the container terminal inside the port, and also operates a container terminal in adjacent Katupalli Port.

“KPL plans to lease two berths (CB3 and CB4) to a private player for the next 30 years. There is every chance that Adani will bid for it to handle coal from Australia,” an office-bearer of Kamarajar Port Ltd Officers Association, told Business Line .

Kamarajar port, the 12th Major Port, is a model landlord major port with a 100 permanent employees and nearly 1,500 contract workers. It is the only Major Port that’s functioning without any grant/aid from the Centre but paying dividend every year to the government. The port handled 30 million tonnes of cargo in 2016-17, said another officer.

With the existing agreement executed between the port and Build, Operate and Transfer private operators and captive berth operators for cargoes such as coal, liquid cargo, automobile and containers, KPL will make profit for the next 30 years.

“This being the case, why should the government sell a profit-making port ?” the officer asked. Instead of selling the port, the government can consider an IPO to raise money or merge it with Chennai port, he said.

Officials said instead of doing an open bid, the government plans to go for a strategic sale by giving opportunity to select bidders, including Adani group.

According to an official statement, Tamil Nadu Chief Minister Edappadi K Palaniswami told the Assembly today that the Tamil Nadu government is taking steps to get information from the Union Shipping Ministry on the proposed divestment of the port.

The state government had not received any information previously on the issue from the port management or the Shipping Ministry. News reports on June 19 had said the Centre is likely to sell its stake.

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