Chennai:
The
port sector, including the major and minor ports, in Tamil Nadu needs holistic
development to boost the confidence of the domestic industry and enhance their
competitiveness and make the state a preferred investment destination for
domestic and overseas investors.
The
ports may develop capacities, but the problem that has to be addressed will be
in the inadequate support infrastructure like road and rail connectivity.
According
to a study by the Confederation of Indian Industry (CII), with the support of
Deloitte, “by 2020, Tamil Nadu region is envisaged to have a capacity to handle
around 333 million tonnes of cargo. The likely traffic to be handled would be
around 284 Million tonnes, in comparison with the 98 million tonnes handled by
the three major ports, Chennai, Ennore and Tuticorin and 1.6 million tonnes by
the minor ports administered by the Tamil Nadu Maritime Board in 2010-11.
Chennai
and Tuticorin ports together handled two million TEUs of container traffic,
which accounts for a share of around 22 per cent of the overall container
traffic in India. It is projected that
the Tamil Nadu region ports, including Puducherry and Karaikal Ports, are
likely to handle more than 7 million TEUs by
2020.
As
projected in the `Maritime Agenda 2020’, the corresponding capacity in the
region would be more than 11 million TEUs by that time.
N K
Ranganath, Chairman, CII Tamil Nadu, said there were several hurdles in
reaching this ambitious but possible bulk and container cargo handling traffic
in the next eight years. The study highlighting the bottlenecks has made both
short-term and long-term measures to break them and called for policy and
budgetary interventions, active role for the private sector and manpower
development, he said.
Ranganath
said, according to the CII study, the major bottlenecks were -- Inadequate back-up and storage transit space
provided to the two container terminals, inadequate road facilities to handle
the load equal to the port handling
capacity, non-availability of sufficient entry gates and the delay in
implementation of connecting roads to the port
and the by-pass road to Ennore-side’’.
The
road capacity in Chennai “can at best
support a traffic of not more than 1-1.2 million TEUs a year whereas the
terminal capacity is significantly higher than this volume leading to the
current problem of severe congestion at the port’’, the study has pointed out.
Among
the short-term recommendations are --
Increase the number of gates at the Chennai Port, move containers to Inland Container Depots
(ICDs) by train, expedite the Sriperumbudur dry port project and speed up the two projects of widening of the Ennore-Manali highway and the
elevated road corridor from Chennai port to Maduravoyal.
As
long-term measures the study has recommended-- to create more dry ports outside
Chennai, similar to the one proposed in Sriperumbudur, increase the operations
through ICDs by providing better rail connectivity, expedite the proposed
container related developments (new terminals and infrastructure) in the region
with adequate Customs support, and explore the possibility of moving export/
import containers in batches using barges from non-major ports to the two
terminals at Chennai port.
The
recommendations for policy and regulatory interventions at the Central level
include more clarity on the proposed policy and regulatory outlook including
the future of TAMP (given MPRA), flexibility of setting independent tariffs
(for non-major ports) etc.
The
State-level policy interventions include identifying measures to promote
coastal shipping, laying down clear guidelines for converting captive port
facilities into commercial ones and suitably refining the current Tamil Nadu
Minor Port Policy to make it more attractive from the private sector’s
perspective. It is also recommended that other industrial development policies
(like the TN Industrial policy, TN SEZ policy) should be synergized and aligned
with the port-sector policy.
Budgetary
interventions are mainly for maintenance and
development of port infrastructure facilities and road and rail connectivity.
The
study says that private sector participation in the port sector would be
critical to increase capacities in order to meet the growing traffic and has
called for a framework for private sector participation in the State for
port-sector needs.
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