With the industry expected to grow big, the existing facilities to export and import cargo in Chennai are just not enough.
On September 28, the Ennore port cancelled the bid by a company Bay of Bengal Gateway Terminals, for container terminal project, after it failed to tie-up funds. The terminal was to have a capacity of 1.5 million TEUs (twenty foot equivalent units).
“We have cancelled the bid, as the company couldn’t tie-up funds. Now we have to think about the future of the proposed terminal. The matter will be discussed at our board. The industry view will also be taken into account,” said Ennore port chairman and managing director S. Velumani.
The Chennai port trust can handle two million TEUs per annum and L&T port is expected to handle another 1.2 million TEUs. The trade would still face a deficit as it has projected export-import of 4 million TEUs at Chennai coast by 2020.
The mega container terminal project at CPT is also getting delayed. The Rs 4,000 crore project expected to create a facility to handle 4 million TEUs is still in the security clearance stage. The sea has to be reclaimed to create this facility and the tentative completion period is January 2020.
“We need additional facilities as more investments are coming towards Chennai and Bengaluru,” said Chennai Customs House Clearance Agents Association president A.V. Vijayakumar. He added that MNCs like Yamaha and Honda are setting up their manufacturing facilities in these two states and so logistics is paramount for overall development.
“Chennai port is in the heart of the city and has disadvantages in creating new roads. But it is not difficult to plan wider roads to Ennore,” he added.