Ennore port, dubbed the ?port of the millennium?, is ready with a business plan to handle 57.47 million tonnes of cargo including coal, iron ore, liquid bulk and 11.17 million TEUs of containerised cargo by 2026. But none of the terminals would be built by the port but by port-using companies in the private or public sectors. This fast-track growth, which dwarfs the old ports in the country, is attributed to the corporate structure of the port. And its futuristic business plan stands out as a symbol of India?s growth potential and growth strategy.
Ennore began operations in 2002 by importing coal for the Tamil Nadu Electricity Board. The terminal was created and operated by a private operator. Also, when conceived, Ennore was intended to be a satellite to Chennai port. On delivery in 2001, it was declared to be a ?corporate port?, or ?land lord port?, a new concept in the Indian port development programme.
The idea was that the government-owned Ennore Port Ltd, with substantial land area at its disposal, will build and own the basic port infrastructure with a deep basin, entry channel and breakwaters. Regulatory functions also will be with the port. It was for the private investors to set up the terminals for handling diverse cargo .
This combination of public-private partnership to build world-class infrastructure has hardly put any strain on taxpayer?s money and national finances. A willing government machinery to act as catalyst, a small port management team with big powers to execute plans and the cash-rich public sector or private sector enterprises and investors queuing up for making investments on the build, operate transfer (BOT) basis with 30-year concession agreement created a win-win situation for the country, the people, the investor and the business community.
The bureaucracy in the shipping ministry, with little knowledge about engaging the private sector for building public projects, learned the lessons of drafting deals and concession agreements. Now there is a model concession agreement that acts as a guideline for not only ports, but for any public sector undertaking wanting to do BOT projects on long-term lease terms.
joseph.vackayil@expressindia.com