Ports are a nation?s face to world business. Their performance, capacity and technical capabilities are a measure of a country?s development. When Indian policymakers decided to unfetter the shackles of the economy, waves of reform also swept across the ports. The cargo handling capacities of major Indian ports are set to be raised to over 1,000 million tonnes (mt) a year by 2012, from just half that capacity today. As the date draws closer, it is unlikely that the ports will be scaled up to the targeted level with an estimated gap of 35-40%.

A major share of the needed investment is expected to come from FDI and the Indian private sector. However, with investment severely lacking, the ports are wanting in modernisation and equipment. In this dismal scenario, the Ennore Port Ltd (EPL), India?s first corporatised port with its success in attracting private investment is the only silver lining. This just-born (in 2001) port will have achieved in 15 years what older ports took decades to accomplish. By 2016, EPL will have the capacity to handle over 80mt of cargo. Investments by companies and the private sector will exceed Rs 5,000 crore, more than half of which will be from the private sector.

At conception, EPL was only a satellite of the Chennai port, but in a decade it has become India?s first corporatised port. EPL charted its course by wearing the mantle of a ?landlord port?, facilitating the development of world-class facilities, making it the eastern gateway port of India. It is now able to handle coal and a privately owned marine liquid cargo. By August 2010, two more terminals will be ready for handling coal and iron ore. EPL is building a terminal to handle cars and project cargo. A plan for a container terminal is caught in legal wrangles, but it is believed that litigation is coming to an end and EPL will continue to build a container terminal.

IOC is expected to play the lead role in developing an LNG terminal with its subsidiaries and a foreign strategic investor. This will boost the fortunes of EPL as the LNG terminal can help develop several downstream industries. TNEB is also planning to develop a new thermal power project with coal linkage through EPL. By 2015-16, EPL?s coal handling capacity is expected to be about 43mt. With its rapid development, EPL is the port of call for modernisation and privatisation.

joseph.vackayil@expressindia.com