Chennai, Ennore & Kattupalli Ports - Projects Updates

[senthil2001msk]

Chennai, Ennore ports fight for cargo

The two govt-owned ports, which are just 20km apart, are in race to develop container handling facilities

Source


Bangalore: Two Union government-owned ports located just a few kilometres away on India’s eastern coast are slugging it out to develop container handling facilities with private investment to cater to rising needs of exporters and importers in the world’s second fastest growing major economy.


Growing traffic: Containers being brought in at Jawaharlal Nehru Port Trust in Mumbai. Demand for container facilities is rising in the country and both the Chennai and Ennore ports are looking to tap it.

One of them, Ennore Port Ltd, was set up primarily to handle the so-called dirty cargo such as iron ore and coal and free Chennai Port, just 20km away, from handling such cargo that could pollute the city. But, with Ennore getting into the business of handling clean cargo such as containers, Chennai Port says it sees no reason to give up dirty cargo.

The fight between the two ports started when Ennore Port, the country’s first Union government-owned major port set up under the Companies Act 1956, floated a global tender on 8 March to set up a Rs1,300 crore container cargo facility with an annual capacity of 1.5 million twenty-foot equivalent units, or TEUs, at the port. A TEU is the standard size of a container and is a common measure of capacity in the container business.

Chennai Port retaliated and, on Wednesday, floated a global tender for building a mega Rs3,150 crore container terminal with an annual capacity of 4 million TEUs at the port, leaving bidders confused as to which one to bid for. “It will restrict competition among firms for the two projects. It would have been better if Chennai had come out with the tender after Ennore had completed the bidding process,” said a Gammon Infrastructure Projects Ltd official, who did not wish to be named. Firms have until 16 June to submit initial bids for the 30-year project at Chennai Port, which is expected to get operational by 2013.
In case of Ennore Port, firms have until 30 April to submit pre-qualification documents to be eligible for bidding.
“It is a good sign that ports are ambitious and are looking at large volumes of container traffic,” said S. Hajara, chairman and managing director of state-owned Shipping Corp. of India Ltd. India’s container traffic is estimated to rise to 21 million TEUs by 2016 from about 7.5 million TEUs now, according to the union shipping ministry.

Chennai and other 10 Union government-owned major ports are run as trusts under the Major Port Trusts Act, 1963. These ports are regulated by the Tariff Authority for Major Ports; Ennore being a corporate port is not.
PSA International Pte. Ltd, the world’s second biggest container port operator owned by the Singapore government’s investment arm Temasek Holdings Pvt. Ltd, will not be allowed to bid for the third terminal at the port, says the tender issued by Chennai Port.

This is because of a Union government policy which prohibits a firm that wins the last cargo-handling contract at a major port from participating in the bidding for the immediate next contract in an effort to promote competition within a port. PSA International is building the second container handling facility at Chennai Port along with local partner Sical Logistics Ltd.

DP World, the world’s fourth biggest container port operator, already runs a 1.4 million TEUs a year container terminal at Chennai. It handles 1.1 million TEUs from this facility, which is expected to reach full capacity later this year.

By December, PSA International will start operating a new 1.5-million-TEU-a-year terminal. The second container terminal at Chennai Port is expected to reach full capacity by 2013-14, when the third terminal is slated to start operations.

Initially, the government had decided that dirty cargo would be shifted to Ennore Port when it started operations so that Chennai Port could focus only on clean cargo. Ennore Port started operations in June 2001 and handles about 9 million tonnes (mt) of coal imported by the Tamil Nadu Electricity Board, or TNEB, to fire its power plants in the state. “But, this (the shifting of dirty cargo) has neither happened nor will it happen in future. At no point can Chennai (Port) stop handling coal and iron ore,” said a Chennai Port official, who did not wish to be identified.

Ennore Port, meanwhile, has changed its master plan to include facilities for handling clean cargo such as LNG (liquefied natural gas), LPG (liquefied petroleum gas), petroleum products, chemicals and containers, putting it in direct competition with Chennai Port. It even plans to set up dedicated berths for facilitating export of cars manufactured in and around Chennai, a business that the Chennai Port already caters to.

“We are not willing to handle dirty cargo, but are compelled to handle them because there is no facility at the moment to handle these cargoes in Ennore Port . We want to get rid of coal and iron ore cargo, but the trade will not go (elsewhere),” said the same official at Chennai Port.

The trade also prefers Chennai because it charges lower rates for handling coal and iron ore—being an old port— when compared with Ennore.
As a result, Chennai Port continues to handle iron ore and coal. The port handled 10.8mt of ore and more than 9mt of coal in the 12 months to March 2008. The port will lose revenues if this cargo shifts to Ennore Port. A policy decision on shifting the dirty cargo entirely to Ennore rests with the shipping ministry, said the Chennai Port official.

Even after Ennore Port starts operating an 8mt-capacity coal terminal for non-TNEB users and a 15 mt-capacity iron ore terminal with private investments, there will be a capacity crunch at Chennai and Ennore ports to handle dirty cargo.

The coal cargo at Chennai Port has been growing at about 10-15% a year on the back of strong demand from power plants, sugar mills and cement factories in southern India. At this rate, the coal traffic of non-TNEB users in Chennai Port alone is expected to touch15-16mt a year from the existing 9mt.

“There will always be a shortage of capacity for importing coal and exporting iron ore from this region. In the absence of adequate capacity, where will the exporters and importers go?” asked the Chennai Port official. “Instead of setting up facilities to handle more coal and iron ore, Ennore Port is getting into container business,” he added.
However, Ennore Port claims that there is enough container cargo for everybody in this business.

“Trade is growing and containerization of cargo is growing. Everybody has got business in India,” an Ennore Port official said. “Because we are located close by makes it obvious that we are competing. That way all ports are competing with each other for cargo,” he added. Ennore has awarded contracts to private firms to develop and operate coal, iron ore and liquid terminals. It also plans to increase capacity for handling TNEB coal by about 4mt a year from the current 9mt.

[Rasnaboy]

“The terminal has a capacity to handle 1.5 million TEUs”

CHENNAI: Arrival of the vessel St.John George Grace from Colombo on June 4 will officially mark the opening of the second private container terminal of the Chennai Port Trust (ChPT).

Though the second container terminal was to be inaugurated by April-end, it was deferred by more than a month due to delay in getting confirmation about the arrival of vessels along with contractors’ delay in finishing the work, said a Chennai International Terminals Pvt Ltd (CITPL) official.

K.Suresh, ChPT chairman, told The Hindu on Thursday that the second container terminal would commence operations by June 4 or 5. “The terminal has a capacity to handle 1.5 million TEUs (twenty foot equivalent units). Initially, it will start operations with a quay length of 400 metres.”

Built at a cost of Rs.495 crore, the Chennai International Terminals Pvt Ltd (CITPL) is a joint venture between Port of Singapore Authority and Sical Logistics. The new terminal at East Quay and South Quay III will have a quay length of 832 metres and 15.5 metres alongside berth.

There will be a back-up area of 35 hectares, including 7.8 hectares to be reclaimed by the ChPT.

New cranes

About 10 new RTGs (rubber tyred gantry) cranes from ZPMC, China, have already been imported and installed at the new terminal.

The cranes are capable of stacking 5+1 high containers and have a span of 6+1 containers. The terminal is designed to accommodate deep-draft vessels of 8,000 TEUs. Its connectivity to Inland Container Depot destination has been enhanced through seamless railway connection of two rail lines that will be ready by mid-June. St. John George Grace vessel has capacity to accommodate 1,200 TEUs and has a length of 164 metres, the official added.

Source: http://www.hindu.com/2009/05/29/stor...2960460900.htm

[MyNation]

NEW DELHI: As part of the first 100-day 'action programme' of the government, the Shipping Ministry would award projects worth more than Rs 3,300
crore for developing and upgrading container and cargo terminals at various ports in the country.

"We will issue Letter of Award for six projects within the next 100 days for various ports, apart from initiating the process for awarding another 23 projects," a senior official said.

The six projects to be awarded within the next 100 days include development of a container terminal at Ennore, North of Chennai, at an estimated cost of Rs 1,407 crore.

Also included in the plan is the construction of deep draft iron ore berth at Paradip at an estimated cost of Rs 591 crore. It will have another project for construction of deep draft coal berth, estimated to cost Rs 479 crore.

Other projects include conversion of a general cargo terminal into a container terminal at Tuticorin Port (Rs 312 crore), setting up of mechanised iron ore handling facilities at New Mangalore (Rs 277 crore) and development of berth for handling bulk cargo at Goa (Rs 252 crore).

http://economictimes.indiatimes.com/...ow/4627222.cms

[krishnancv]

What happened to the inauguration of 2nd container terminal in ChPT? It was supposed to be on Friday right?

[BB007]

here is the answer

http://img25.imageshack.us/my.php?image=portz.jpg

find the second container terminal 50% ready

the second one is ennore iron ore terminal

http://img25.imageshack.us/my.php?image=ennore.jpg

[krishnancv]

loads of thanks for sharing. But if this is the update as on am y9th I am wondering how would it be inaugurated so soon?

[Kewl Batty]

Chennai International Terminals trial operations begin



Await official opening: St John Grace, the container feeder vessel, docked at Chennai International Terminals Private Ltd, the second private container terminal at the Chennai port.

Source

Chennai, June 19 Trial operation has begun at Chennai International Terminals Private Ltd (CITPL), the second private container terminal at the Chennai port. However, the official opening, delayed by nearly four months, is likely to happen in October, according to sources.

St John Container Lines Pte Ltd. Singapore, a subsidiary of the Tuticorin-based St John Freight Systems Ltd, became the first company to commence a feeder service from the new terminal — jointly operated by PSA International of Singapore and Sical Logistics of Chennai.

Its container vessel, St John Grace, has begun a shuttle service between the new terminal and Colombo with a weekly call at Chennai. To begin with, the ship is handling around 200 boxes every voyage and plans to have around 500 boxes in the next few weeks, the sources said.

The new terminal began trial operations with 480 m of quay length; three quay cranes and ten rubber-tyred-gantry cranes. The full 832 metres of quay length is likely to be ready only by October. The company has sought time from the Chennai Port Trust to delay the official opening, the sources said. Being a ‘brown field’ project, it took more time for the company to get the infrastructure ready.

Also, the berth before being handed over to CITPL was used by Indian Navy vessels, and it took time to make alternative arrangements for the Navy. Recently, there was also a minor accident with a crane belonging to CITPL damaged by a ship. All these delayed the project’s completion, the sources said.

The Chennai Port Trust (ChPT) has signed a concession agreement with CITPL to convert the existing facility into the second container terminal through private sector participation for a licence period of 30 years. The planned terminal capacity is 1.05 million TEUs (20-foot equivalent units).

Recently, the Tariff Authority for Major Ports (TAMP), which fixes tariff at all the major ports, said in its order that the tariff fixation for CITPL is only an interim arrangement, valid till June 30 to enable the new operator start operations. The final tariff based on CITPL’s projections will be set after TAMP’s due process.

[natarajan1986]

Originally Posted by ajithv

Lok Sabha


National Maritime Development Programme (NMDP) envisages setting up of two international size shipyards, one on the East Coast and another on the West Coast of India. Maritime States including Gujarat were requested by this Ministry to identify suitable locations for setting up of international size shipyards, one each on the East Coast and West Coast of India respectively.

Government of India nominated Mumbai Port Trust and Ennore Port Limited to function as the Nodal Agencies for setting up of shipyards on the West Coast of India and the East Coast of India respectively. The nodal agencies viz. Ennore Port Limited and Mumbai Port Trust have been authorized to appoint Consultants who, inter alia, would identify 3 or 4 alternative sites each for setting up of shipyard on West Coast and East Coast of India respectively and also suggest optimal locations with detailed justification. The commencement of the project depends on the outcome of the recommendations of the Consultants.

The Maritime States were requested by this Ministry to identify suitable location for setting up of international size shipyards, one each on the East Coast and West Coast of India respectively, with the following basic requirements:

(i) The minimum land requirement of 1000-1500 acres and waterfront of about 2.5 Kms in length;

(ii) Water draft of 10 to 12 metres;

(iii) The site location for the proposed shipyards to have good rail and road connectivity;

(iv) Contiguity to a Major Port situated within the State.

Source & More Details Here

is ennore port is just a agency or they will make ennore to internation standard??

[Subra]

http://www.autoindia.com/News/auto-news-india1667.html

Bangalore, 14 July 2009: Toyota Kirloskar Motor (TKM), the Indian subsidiary of Japanese auto giant Toyota, will ink a pact with Ennore port in Tamil Nadu to export its small cars, which would be manufactured at the company's upcoming plant near Bangalore from 2010-11, the company's Deputy Managing Director (Commercial), Mr.Shekar Viswanathan said.

TKM would apply for space in Ennore port soon, Mr.Viswanathan added on the sidelines of 32nd AGM of Bangalore Chamber of Industry and Commerce.

"We have analysed both Mangalore Port Trust and Ennore port in Tamil Nadu. Ennore would be more suitable for us to export to countries in the east," he said, while adding that TKM would export small cars to Indonesia, Malaysia, Philippines, Thailand, and Vietnam.

Currently, TKM is constructing a second production plant at its existing 420-acre factory complex in Bidadi near Bangalore to manufacture small cars. The company has invested Rs.3,200 crore to build the plant that would have an annual production capacity of one-lakh units.

Although the small car rolled out from the new plant would be primarily for the Indian market, the company has also decided to ship it overseas.

If the deal was through, Toyota would be the second automaker to export cars through Ennore port.Already, Nissan has signed an agreement with Ennore port to export around 1.1 lakh cars per annum, primarily to Europe.

[Kewl Batty]

..

[sridhar_n]

Originally Posted by Subra

http://www.autoindia.com/News/auto-news-india1667.html

Bangalore, 14 July 2009: Toyota Kirloskar Motor (TKM), the Indian subsidiary of Japanese auto giant Toyota, will ink a pact with Ennore port in Tamil Nadu to export its small cars, which would be manufactured at the company's upcoming plant near Bangalore from 2010-11, the company's Deputy Managing Director (Commercial), Mr.Shekar Viswanathan said.

TN govt/ Ennore Port should also convince Hyundai to use Ennore port for the proposed expansion. Hyundai has announced that since the facilities in Chennai have reached a saturation point, it wants to set up further capacities in other places ...most probably in AP...TN has to convince Hyundai to stay in TN.

[krishnancv]

Hyundai isn't going anywhere. It is building a multilevel car park at Chennai port to enhance the capacity of the car terminal. And ChPT is in the process of expanding the terminal. I personally feel Chennai port should be conveted to an all clean cargo port and Ennore must concentrate more on dirty cargo. Ennore is going ahead with plans of setting up a container terminal. If the Port-Maduravoyal project is not finished on time the terminal operators at Chennai would stand for a disadvantage. Currently there is a traffic restriction for large trucks entering into the city. This must not be thre for the elevated expressway. Already Ennore has MOUs with Toyota nad Nissan. Chennai port caters to Hyundai and Ford.

[Subra]

http://economictimes.indiatimes.com/...ow/4846616.cms

NEW DELHI: A section of Japanese companies and government representatives have requested India to address the infrastructure bottlenecks connecting
Ennore Port in Tamil Nadu, as many Japanese companies are now planning to utilise it as the prime route to export their products to European and Asian markets.

Japanese vice minister for ministry of economy, trade and industry (METI) Hiroyuki Ishige, who is equivalent to commerce or industry secretary in India, recently met minister of road transport and highways Kamal Nath to insist that Ennore Port connectivity should be taken up expeditiously, a Japanese government official, who did not wish to be named, told SundayET. Mr Ishige came to India mid-July to participate in a task force meeting of the proposed Delhi-Mumbai industrial corridor (DMIC). In fact, Japan has been keen on investing on such a corridor project, proposed to be developed in South India too.

Already, Japanese auto company Nissan Motors had inked MoU with Ennore Port (EPL) to export their vehicles to Europe and elsewhere through the port. Nissan Motors, in fact, was the first automaker to utilize this eastern gateway port as an export base.

Director general of Japan external trade organisation (Jetro) Naoyoshi Noguchi confirmed that better connectivity to Ennore port would be in the interest of the Japanese auto majors who set up production centres in Tamil Nadu. Many of those companies have interest in exporting their products and Ennore could provide the best outlet, he said.

Though Ennore was first conceived as a satellite port to handle thermal coal requirements for Tamil Nadu Electricity Board (TNEB), its scope was later expanded keeping in mind the growing investments taking place in that belt. It is estimated that by 2013-14, the second phase of development would augment the port cargo handling capacity by 58 million metric tonne per annum.

[Subra]

http://www.thehindubusinessline.com/...0350720500.htm

Mr S. Velumani, chairman-cum-managing director of the Ennore Port Ltd (EPL), is a happy man. The port maintained its traffic and improved its revenue and profitability in 2008-09. And it is likely to give a dividend of 15 per cent to the government.

The good result also earned the country’s first corporatised port a Mini Ratna status that gives EPL’s board the power to invest up to Rs 500 crore on its own without going to the Centre for clearance.

The country’s other major ports that have been in existence for so many years have such investment powers only up to Rs 100 crore. For the year ended March 31, 2009, the port’s net profit increased by 20 per cent to Rs 42 crore, compared with Rs 35 crore in the previous year, and its revenues were up by 11 per cent to Rs 142 crore (Rs 128 crore). In 2008-09, the port handled 11.50 million tonnes (11.56 million tonnes).

Ennore Port was developed from a greenfield situation on the country’s East Coast, 20 km to the north of Chennai port. It was declared a Major Port in March 1999 and incorporated as a company (Ennore Port Ltd) in October 1999.

The Port was commissioned in June 2001 with two dedicated coal berths with a 15-metre alongside depth and, since then, handles 9 million tonnes of thermal coal per annum for Tamil Nadu Electricity Board’s power stations.

The port also handles small quantities of iron ore and POL through temporary facilities. So, what does the Mini Ratna status mean to the Ennore port? A lot, says Mr Velumani.

“The perception among many that this port model (corporate structure) will not work has failed,” he said. The corporate model at EPL has been very successful and the Mini Ratna is a recognition for the managerial efficiency of the company. Various projects in the private sector to handle liquids, coal, iron ore and containers will be initiated on a ‘war footing.’

What next?

“It is now time to build on the image of the port to tap more investors and users,” he said. “We are in the second and most important phase of development that involves major projects to enhance the port’s handling capacity to 64 million tonnes in the next two or three years from the present 15 million tonnes.”

The port has requested the Centre for a grant of Rs 440 crore for capital dredging. This includes increasing the depth of the channel to 20 metre from the present 16 metre and providing a draft of 18 metre to iron ore and coal berths and 16 metre to the container berth. “We plan to synchronise the dredging along with other developmental projects,” he said.

The container terminal is one of the most ambitious projects at the port with an investment of over Rs 1,400 crore. The 1.4-km quay length will be the country’s longest single quay with an annual capacity to handle 1.5 million TEUs (twenty foot equivalent units). More importantly, the port is giving the BOT (build, own and transfer) operator 125 acres of land adjoining the wharf for storage. No other port gives this advantage. (A foundation stone for the container terminal was laid in February this year).

With an alongside depth of 16 metres, the terminal will be designed to handle the largest container ship available in the world up to a size of 14,500 TEUs. The terminal will be able to handle three mainline vessels simultaneously.

Growing interest

There is an ‘interesting’ set of potential bidders (shortlisted from a global tender) with two of the global terminal operators – APM Terminals (it operates a Global Terminal Network of over 50 ports and provides port management and operations to over 60 liner shipping customers) and NYK in the fray.

These two are joined by consortiums led by Indian companies such as Larsen & Toubro and Sterlite Industries, he said.

Liquid terminal

The multi-liquid terminal will be the country’s first common-user, integrated liquid jetty and tank terminal project to be developed on a BOT basis at a major port. Ennore Tank Terminal Pvt Ltd, a special purpose company promoted by IMC Ltd, an independent bulk liquid storage company, will implement the project on a 30-year BOT licence from EPL.

IMC will pay a revenue share of 21.78 per cent to EPL. The 360-metre berth’s capacity is 6,000-1,50,000 dwt (dead weight tonnes). The storage tank has a capacity of 1.3 lakh kilo-litres. There are 42 storage tanks and the total cargo handling capacity is three million tonnes a year.

Coal, iron-ore terminals
While the iron ore terminal was awarded to Sical Iron Ore Terminal, the coal terminal was given to Chettinad International Coal Terminal. Both the facilities are scheduled to be operational by August 2010.

This should ease both coal and iron ore traffic at the Chennai port. The coal terminal will have 130 acres of stock yard and the iron ore terminal will have 70 acres, he said.

[Into_salem]

TIMES NEWS NETWORK

Chennai: With a view to enhance capacity and modernise ports in the country, the ministry of shipping has identified specific projects for implementation within the next three years and budgeted an investment of Rs 1,00,339 crore.
Under the National Maritime Development Programme (NMDP), 276 projects have been identified in 13 major ports across the country to be completed by 2011-12. These projects would cover the entire gamut of activities like construction and upgrade of berths, deepening of channels, rail-road connectivity and other facilities, union minister G K Vasan told parliament.
This would entail an investment of Rs 55,803.73 crore with Vishakatnam port having the maximum number of projects. The port has been asked to execute 38 projects at an estimated cost of Rs 2,621 crore. The Kochi port would get the maximum investment of Rs 7,920 crore to execute 14 projects. Vishakapatnam port would establish a container terminal on a BOT basis and two multipurpose berths. Chennai Port Trust and Tuticorin port trust will execute 14 and 24 projects respectively.
While Chennai Port will get an estimated Rs 2,247 crore, Tuticorin will get Rs 4,571 crore. Chennai port will establish a container terminal at a cost of Rs 470 crore while Tuticorin will set up a container terminal berth at a cost of Rs 100 crore.

http://epaper.timesofindia.com/Defau...Mode=HTML&GZ=T

[kvijayasundaram]

http://www.thehindubusinessline.com/...0550760500.htm

Sical Logistics Ltd, a provider of multi-modal integrated solutions for the logistics of bulk and containerised cargo, has signed a memorandum of understanding with Japan’s Mitsui O.S.K. Lines Ltd (MOL) to form a joint venture that will operate the automotives management yard at Ennore Port, near Chennai.

MOL is among the world’s largest shipping and logistics companies and considered among the leaders in global automotive transportation.

The MoU was signed by Mr Takashi Kurauchi, Managing Executive Officer, Mitsui O.S.K Lines, and Mr L.R. Sridhar, Managing Director, Sical Logistics, in the presence of Mr S. Velumani, Chairman-cum-Managing Director, Ennore Port Ltd. The yard will manage automotives in CBU (complete built-up unit) form and will cater to exporters/importers based in India.

The proposed venture will combine the expertise of MOL in global automotives transportation and yard management with Sical’s competencies in multi-modal integrated logistics and terminal operations, according to a press release issued by Sical.

As reported earlier, Ennore Port will invest Rs 110 crore for creating a multi-purpose berth to handle export cars.

This can also be used as a general cargo berth. Nissan-Renault, which has decided to export its cars from Ennore, has committed to export 90,000 cars in 2010-11 and gradually increase it to 1.80 lakh from the fourth year.

The terminal will be a quarter km long, with a berth of 12 metres deep. A stack yard will be created to park 1.40 lakh cars at the port.

[die4chennai]

With these developments, Chennai port's aspirations of becoming a clean cargo port can never happen

[sridhar_n]

Originally Posted by die4chennai

With these developments, Chennai port's aspirations of becoming a clean cargo port can never happen

why do u say so. Do you mean to say that all clean cargo incl car exports should happen from Chennai and not from Ennore?

I too thought Chennai would eventually become a clean cargo port and Ennore will be used for dirty cargo.

[die4chennai]

Originally Posted by sridhar_n

why do u say so. Do you mean to say that all clean cargo incl car exports should happen from Chennai and not from Ennore?

Obviously yes.. Only if Chennai port handles clean cargo, The cruise marina project can happen..
But at present its going no where

[Kewl Batty]

Initially it was planned to make Chennai Port devoid of coal handlings... But later they felt it is impossible to move all coal handlings to Ennore port and they're installing a new covered transporting machinery for transporting coal.

So Chennai Port will never become devoid of Coal handlings.