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Industry divided on prospects for box terminals

Industry divided on prospects for box terminals

Industry watchers are divided on the business prospects of container terminals in Ennore Port.

Some argue that there would be enough business for the proposed new container terminal in the port as handling of cargo globally moves towards containers from break bulk.

A Bhaskarchar, Chairman, Ennore Port (EPL) said recently that with an increase in the transport of containerised cargo in future, there will be enough business for all.

However, others feel that the container terminals in the neighbouring Chennai Port and Larsen & Toubro’s Katupalli port would give stiff competition to Ennore Port.

Besides, the global economic uncertainty has put a big question mark on the viability of a new container terminal at Ennore Port, some industry watchers feel.

The container terminal at L&T’s Katupalli port was built by Larsen & Toubro and it is north of Ennore port. The terminal at Katupalli port is ready with the entire necessary infrastructure, including gantry cranes to handle containers. It may be commissioned any time, thus posing a major challenge to both the Ennore and Chennai Ports, reports suggest.

Chennai Port is also in the process of setting up a mega container terminal. The project got poor response with the final bidder, Essar Ports, quoting 5.25 per cent as revenue share. This, the port felt was too low. The reason cited for the low share was the economic uncertainty. The port trust board has formed a committee to seek a possible increase in the offer.

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