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The Chennai Port Trust (ChPT) is exploring the possibility of taking over one or two berths at Karaikal port, a private port in Puducherry operated by the Chennai-based Marg Group, to handle bulk and dry bulk cargo.
Since there is no precedent or specific guidelines for a major port to take over a port/private berth, the ChPT has asked the Indian Ports Association (IPA) to formulate a business plan for this proposal, said sources.
The ChPT is now formulating a business plan to look at alternative modes of development to increase cargo volume, improve financial position and sustain operations, sources said.
There has been a significant drop in cargo volume at the Chennai port following a Supreme Court ban on handling of coal, iron ore and other dusty cargo in October 2011.
The cargo was diverted mainly to Kamarajar port at Ennore and Krishnapatnam port.
The Chennai Port handled nearly 10 million tonnes of coal for thermal power stations in 2008-09.
GRK Reddy, Director, Karaikal Port Pvt Ltd, recently suggested to the ChPT two proposals — use a deep draft mechanised berth at Karaikal port to handle coal for Tamil Nadu Electricity Board or take one or two berths on sub-concession or Build, Operate and Transfer basis.
The berth can handle coal, containers and LNG. A team led by ChPT Chairman Atulya Mishra visited the Karaikal Port, and a non-major port of Cuddalore operated by the Tamil Nadu Maritime Board, and a greenfield site at Pazhaiyaru in Tamil Nadu to develop a satellite port. It has zeroed in Karaikal port based on Reddy’s proposal, sources said.
The Karaikal port is a lagoon type all-weather deep water port (draft ranging between 11 m and 14.5 m) developed by a special purpose vehicle under a 30-year concession with the Government of Puducherry. It has five berths with a back up area of around 150 acres. It handled 6.24 million tonnes last financial year.
The IPA will provide a business plan to ChPT with information like study of physical and financial performance of the coal and containers berths at Karaikal port, gap identification through study of existing capacity and comparative cost of handling cargo.
The study will also include financial model of the business plan. A team headed by Anuj Agarwal former Private-Public-Partnership expert in the Ministry of Shipping along with experts from various areas of specialisation (civil engineering, mechanical, legal and traffic) have been formed for the assignment, sources said.
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