Authorities are not confident that the port can attract guaranteed cargo to make such big investments worthwhile and a viable proposition.Sources speaking to The Financial Express said if the port had to become commercially viable it should at least see a throughput of 10 to 12 million tonne of cargo every year.

It may be recalled that the state government had invited open bids for development of Cuddalore port as an all-weather port over a year ago and shortlisted some parties. However, the government found the bids unviable and hence decided to postpone consideration of the development of the port.

Feasibility studies done earlier had clearly indicated that Cuddalore port development and growth depended upon the setting up of major industrial activities including movement of coal and generation of power.

It is now learnt that the Cuddapore Power Company Limited (CPCL) which was planning to set up a 1320 mw coal-based thermal power station has not taken off as expected.

Similarly, coal movement to Cuddalore port in an appreciable volume can happen only after Ennore port reaches full operational capabilities. If this could happen coal meant for Mettur can be diverted to Cuddalore port.

However, Ennore port is not yet fully developed and power project here is far from reaching financial closure.

Cuddalore at one time had also been slated to have a private jetty for handling coal by the CPCL for its power project. This has also failed to materialise.

Earlier the belief that Cuddalore offered an ideal location for transhipment of cargo was founded on the premise that several industrial units would be setting up operations in and around the port area. The National Thermal Power Corporation (NTPC) had proposed to set up a 1500 mw coal-based thermal power project in Cheyyur near Cuddalore. But recently, NTPC is reported to have taken a decision to shift its power project from Cheyyur. The plans of Tamil Nadu Electricity Board (TNEB) to put up a power project in Cuddalore has also been deferred.

According to official sources, nearly 60 to 70 per cent of the project cost for developing Cuddalore port will have to be spent in improving the water basin for easy movement of big vessels. Most of the development expenses would be towards break water construction and capital dredging of enclosed area and navigation of channels.

It is reckoned by officials that progress in Cuddalore port development can be made only after industrial activities in the hinterland pick up and generate enough cargo volume movement to make the port project viable.