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Users expect overcapacity from proposed projects

Users expect overcapacity from proposed projects
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Exporters and importers, who use major ports, wonder whether the setting up of two container terminals, one each in the Chennai Port and Ennore Port (EPL) would create overcapacity.

It may be noted that EPL is in the process of setting up a container terminal in two phases. The first phase costing over Rs 1,270 crore will have a capacity to handle 1.4 million tonne of twenty-foot equivalent units of containers, with a jetty length of over 730 metre. Similarly, the neighbouring Chennai Port is also planning to set up a terminal for handling containers.

But users of the ports wonder whether it would lead to building excess capacity as new projects were planned at Tuticorin, Visakhapatnam and Krishnapatnam too.

In 2012-13, ports across the country handled 10 million tonne of twenty-foot equivalent units (TEUs) of containers with 20 per cent growth over last year. The port sector was contemplating of adding 14 million tonne of TEUs over the next few years in the west coast alone.

But the shipping ministry does not feel that these projects would create excess capacity. The ministry argues that India must raise cargo handling capacity of its ports otherwise, the sector may lag behind just like the road sector.

Meanwhile, it is learnt that EPL will once again float global tenders soon, inviting parties to take part in the Request for Qualification (RFQ) process for its proposed container terminal.

The board of the port decided to seek re-bids from interested parties through a global tender over the next 10 to 15 days, after obtaining legal clarification on certain issues.

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