The oldest and the second largest container handling port of the country ? Chennai Port ? is well connected with major parts of the world and is the gateway port for all cargo. Infact, it is a major exporter of cars. While Hyundai uses Chennai Port to ship cars to international markets, other commercial vehicle manufacturers like Ford, Nissan and Ashok Leyland are also expressing interest to ship via the port. The port currently has the capacity to handle 30,00,000 TEUs (twenty equivalent units) and with the commissioning of the third mega container terminal being planned, the capacity would go up to 80,00,000 TEUs. In an exclusive interview with FE?s Kavitha Venkatraman, chairman of Chennai Port Trust Captain Subhash Kumar elaborates on the history, growth, development plans and performance of the port. Excerpts:

What are your development plans for the year?

Chennai Port has been a major exporter of cars. Last year, we shipped nearly 2,74,000 cars, 10% more than the previous year, despite the recession. There is huge demand from car manufacturers like Ford, Nissan, Ashok Leyland. They want to ship their products via Chennai Port but we have a lot of constraints on land. So, we are planning to have a Ro-Ro Berth (300-metre-long, 30-metre-wide and 12-metre-deep) at the southern end of the container terminal. The estimated cost of the project is about Rs 50 crore. Besides, we are also looking at setting up a multi-level car parking facility, having a capacity for 6,000 cars, at an estimated cost of Rs 40 crore. One ship load of cars can be stacked in that facility. The project is likely to be completed by 2012 end.

With the completion of the projects, there would be a need for bunker supply. So, we are investing Rs 50 crore to have more berths exclusively for bunkering. We are also planning an integrated dry port and multi-modal logistics hub near Sriperambudur SEZ with an overall investment of Rs 400 crore, including the cost of land. Discussions with the Tamil Nadu government are underway for allotment of about 125 acres inorder to develop the facility. The off-dock CFS will have onsite customs clearance facility. All the developments that we are talking about would be done via the PPP route.

Being the oldest port in India, how has the Chennai Port been progressing to catch up with the growing demand from the market?

It is a 130-year-old artificial port. It?s unique in a way as there is no sheltered harbour here. The port was developed into the sea by reclaiming land. We have two container terminals now at the port with an aggregate capacity of three million TEUs.

In terms of volume we hold the third ranking and second in container handling Among the top 100 ports across the world, we hold the 73rd rank. One terminal at the port is operated by Dubai Port World on a 30-year lease. The terminal has a capacity to handle 1.5 million TEUs. It has a quay length of 885 metres and 14.5 metres inner depth. The revenue sharing with the operator is good here. It is about 37% of their gross earning. In September last year, we started the second terminal with the same capacity. That is operated by the Port of Singapore and is on a 30-year lease. Here, the revenue sharing is 45.8%, which is very good and infact no other port terminal gives that kind of revenue sharing.

We are planning to have a mega container terminal with a capacity to handle 50,00,000 TEUs with an investment of Rs 3,686 crore. To be developed on PPP model, the terminal would be constructed north of Bharathi Dock with continuous quay length of 2 kilometre and 22 metre alongside depth. The plan is to commission the project by 2013 and make it fully operational by 2017. Once the project is commissioned, the overall capacity of Chennai Port would move up to 80,00,000 TEUs, biggest for containers. RFQ process is over. The port is awaiting security clearance from the shipping ministry for the project. Once the clearance is obtained, the works can be awarded within a month.

What infrastructure development have you planned for easy movement of cargo?

Lot of movement of cargo happens in and out of the city. There are some restrictions on movement of trucks. So, for better connectivity we have planned for a Chennai-Ennore Port road connectivity project (EMRIP). This project would connect northern expressway to Kolkata, New Delhi and Ennore Port.

We are also planning an elevated corridor linking Chennai Port gate no 1 to Maduravoyil. This would link Chennai Port to Bengaluru, Mumbai, Madurai and southern part of India. Both these four-lane road projects would provide good connectivity without mingling with the city traffic. The estimated cost of the EMRIP project is about Rs 600 crore. It would be developed via an SPV. Chennai Port, state government, NHAI and Ennore Port are stakeholders in the SPV.

Chennai Port would invest Rs 139.8 crore as equity and Rs 110 crore as loan.

The estimated cost of the elevated corridor project is Rs 1,655 crore. NHAI is doing the project on BOT basis. But we have a commitment to look after the land acquisition and rehabilitation. We are sharing the cost with the state government and our part of the share works out to Rs 310 crore.

How has the cargo handling performance been last year? What is your target for the current year?

Last year, our target was to handle 64 million tonne. But we handled 61.06 million tonne. The Port witnessed negative growth in export volume of iron ore, fertiliser and coal while POL, car and general cargo volumes increased as compared with the previous year. Though we fell short of target due to recession, we saw a 6.3% growth during the year compared with previous year?s 57.49 million tonne. This year, the target has been fixed at 65.50 million tonne. During April 2009-March 2010, the container traffic from the first terminal reached an all time high of 1.22 million TEUs against 1.14 million TEUs. The container traffic from the second terminal was between 20,000 TEUs and 23,000 TEUs per month and we hope it would touch 0.3 million TEUs.

This year, we are quite positive about achieving the set target. Infact, during the first three months of the current fiscal year, we have already handled 15.36 million tonne as against the corresponding period previous year performance of 14.24 million tonne.

Tamil Nadu is a good tourism destination. Is there any plan to develop tourism in association with the state government?

We get atleast 10 cruise ships in a year. These ships go around the globe and while passing through Bay of Bengal, reach Chennai Port. Now, I am thinking if with the help of state government we can work out something for tourism. There can be regular service from Chennai to other ports and one can see places like Columbo and Singapore. The tourism department can offer some package tours. I have started discussions with the Tamil Nadu government and the tourism department. Theses have approved of the idea. Now we will have to come out with some concrete proposal. This idea might not be beneficial to the Port. But I have proposed the idea in the interest of the nation.