A top Chennai Port Trust (CPT) official disclosed that a team from IDFC visited CPT and Ennore last week to find out ways and means of pursuing the idea of corporatisation of the Ennore port.

Meanwhile, CPT is tinkering with the idea of inviting the private sector to share in the construction cost of dredging the basin for expansion of Ennore port. The capital cost of this project will be Rs 450 crore for CPT which will also include putting up one berth for captive heavy lift uses.

The port authority has already taken a decision to privatise operations of the Ennore port allowing users to invest in construction of berths andpay a fee for their operation to CPT. If MoST forms a separate corporate company to manage the affairs of the Ennore port then the receivables from port operations will go to this company.

However, CPT is keen that all private investments for the second phase of Ennore port expansion will be in place before work starts for construction of berths by year 2000.

A key meeting with Ennore port users was held by CPT recently to review this prospect. The Ennore port proposes to have 10 or 11 berths for users. Tamil Nadu Industrial Development Corporation Ltd (Tidco), it is said, is ready to go in for three dedicated berths - one each for LNG, chemical and petroleum products. Coal India Ltd is looking at having two berths, while Indian Oil Corporation and Madras Fertilisers Ltd are expected to opt for one berth each. A berth for iron ore is also being considered but Minerals & Metals Trading Corporation (MMTC) is yet to confirm its decision.

The present thinking is to fully mechanise the operations of theberths so that each one can handle up to 8 million tonnes of cargo. MFL, for example, can even consider common use of the berth with another party if need be.The CPT is also preparing a report on the funds and utilities needed for the second phase expansion of Ennore Port and the capital expenditure of Rs 450 crore. CPT will have to incur expenses for dredging operations and other related work like roads and rail linkages as well as the building of one berth. This report, expected to be ready in four months or so, will be sent to the Public Investment Board for approval, sources said.

The CPT intends to finance the dredging operations and related work from its own resources drawing from the reserve funds but if needed it will also look to sourcing some external funds from the Asian Development Bank (ADB) or World Bank.

CPT's consultants Frederick Harris had done a study for preparing the master plan for Chennai and Ennore ports and ADB is aware of the port's financial and technical requirements. CPT hopesthat ADB will continue to assist the expansion programmes with soft loans. A global tender is to be floated for dredging operations soon.

With each berth costing anywhere from Rs 25 crore to Rs 70 crore, total cost for expansion of the second phase of the Ennore port is estimated to go well in excess of Rs 1,200 crore to Rs 1,300 crore. Work on the second phase will commence soon after the first phase, the work cost of which has zoomed from Rs 593 crore to a whopping Rs 920 crore. With the goal of shifting all dirty cargo to Ennore port to be taken up in the first phase, work for which is slated to be completed by August or September 2000, CPT will also have to make some changes to take in large LNG carriers.