Diversified cargo handling from next year will contribute to a quantum leap in Kamarajar Port’s performance and competitiveness from next year, according to its Chairman and Managing Director, MA Bhaskarachar.

It is also planning to set up a 100-acre Free Trade and Warehousing Zone for which a master plan is being prepared, he said.

Construction of a 1.4 million TEU container terminal is progressing well ahead of plans and preliminary work on multi cargo terminal by a private concessionaire are progressing fast.

The first phase of the ₹ 1,270 crore Container Terminal by Adani Ennore Container Terminal Pvt Ltd will go on stream in the first quarter of 2016 compared with the scheduled date of January 2017, he said.

The first phase involves establishment of a 400 m quay with 800,000 TEU capacity which will be followed up with an additional 330 m quay length which will add 600,000 TEU capacity.

A multi-cargo terminal will be set up by Chettinad International Bulk Terminal Pvt Ltd with a capacity of 2 million tonnes a year and 270 m quay. Construction will start in July 2015 and be completed in 24 months, he said.

The port located at Ennore to the north of Chennai now primarily handles coal import and car export.

The port faces stiff competition from L&T’s port at Kattupalli to the north handling containers, the Chennai Port and the Krishnapatnam Port in Andhra Pradesh, which has a fast developing industrial hinterland.

Kamarajar Port handled 30 million tonnes of cargo in 2014-15 compared with 27 million tonnes in the previous year. The profit before tax was ₹ 421.47 crore (₹ 400 crore); operating income ₹ 563.64 crore (₹ 501.93 crore).

The targeted cargo handling for next year is 32 million tonnes and works will be awarded for construction of a fourth coal berth, third phase of capital dredging, captive bulk terminal and marine liquid terminal.