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The Shipping Ministry is considering merging Ennore port with the Chennai port. This option is being considered to secure the future of Chennai port's revenues.
This comes in the backdrop of a Madras High Court directive to move coal and iron ore handling to Ennore from Chennai. Ennore Port Ltd is the only corporatised major port, and is owned by Chennai Port Trust and the Union Government of India.
Mr K Mohandas, Shipping Secretary, told Business Line that this proposal was one of the considered options but “not seriously on the agenda.”
Dusty cargo
A trustee of the port trust said that the issue has not come up to the board for discussion.
Earlier this year, the Madras High Court directed Chennai port to stop handling “dusty cargo” such as iron ore and coal.
The court directed that such cargo be shifted to Ennore port.
In this context, shifting cargo handling staff from Chennai port to Ennore was considered. But, Ennore port, built on a landlord model, has a lean staff structure.
Chennai Port has staff strength of about 8,000, while Ennore Port has 90. This is one of the key parameters affecting profitability of the ports.
Corporatisation of major ports has been on the agenda of Shipping Ministry. So, implementing this proposal could go against the spirit of the Ministry's move to corporatise major ports unless Chennai port is corporatised first.
Besides, cargo is handled by terminal operators in Ennore Port, leaving no scope for shifting of Government staff from Chennai Port to Ennore, said another official explaining the lean staff structure of the Ennore Port.
The Chennai port lost nearly 10 mt of thermal coal to the Ennore port, which came up a decade ago, after it was decided that all the coal for the Tamil Nadu Electricity Board will be handled at Ennore.
However, the focus on handling clean cargo, cars and containers helped the Chennai port to get back on track and compensate for the lost cargo. This strategy helped.
The port, which handled 43.81 mt of cargo in 2004-05, touched an all time record high of 61.46 mt in 2010-11.
The growth has been steady in the last seven years but the suspension of iron ore export from Karnataka had a big set back on the port's handling last year.
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