SS: How is the Chennai Port bracing up
for the competition from Private ports in the vicinity like Katupalli and
AAJ: With recent developments and competition from private ports such as
Katupalli Krishnapatnam, Karaikal, Chennai port is expected to deliver firm
fight to maintain its market advantage.
On the other hand the fact remains that comparing Major port with a
Private port is inappropriate, since Operational and hierarchy systems of
governance varies between a major and a private port.
Chennai port faced its biggest loss when the coal and dusty cargo
handling was banned as per the direction of the Madras High Court. Coal
handling used to contribute major share in Chennai Port’s revenue. Following
the departure of coal many major bulk cargoes also left the port It is sad to
noted that some of the major shipping lines have also shifted their operations
to Katupalli and Krishnapatnam port. Nevertheless Chennai Port is making all
its efforts to fight the challenges and hopefully those efforts should reap its
benefits in near future.
EMRIP is ready, Maduravayoal Elevated Corridor
will be ready in three years. The Chennai Ports Gate for DPD cargo is being
extended to CONCOR’S Tondiarpet Yard. Containers from Chennai port will move to
Puducherry port soon avoiding congested roads. Will all these infra projects
have a bearing on the volumes of Chennai port?
Ennore Manali Road Improvement Program (EMRIP) is a productive
project. Its productivity will be consumed in full capacity before long.
Anticipating increase in container volumes in Katupalli , Enmore and also from
Chennai Port , EMRIP will host as vital medium to cater the upcoming future
Chennai Port Maduravayol Elevatged Corridor project is a zealous
project for Chennai Port. If the project could have been commissioned as per
schedule, it could have given a quantum business advantage for Chennai Port and
also introduction of new customers.
The Maduravayol Corridor will not only reduce road transport time as
well as cost but also costs to the shipper. Since project has run into rough
weather and expected to be completed only after three years, the benefits to
Chennai port can be anticipated thereafter.
Chennai and Puducherry Port ‘Satellite Port’ proposal was signed on 14th
March 2017. Physical business prospects are however yet to be assessed. There
is need for a satellite Port only when there is limited land availability,
draft inadequacy, de-congest the container traffic.
Given market conditions, the following aspects need to be taken into
consideration such as customers interests, Shipping lines feasibility, storage
capacities and cargo volumes movements etc.
Chennai port is well equipped with 2 world class container terminals,
but their volumes are drastically dripping and, customers and lines are
increasingly shifting to neighboring ports ,
The container traffic evacuation problems in the port have considerably
eased during the last one year and the drafts has been increased to cater large
sized ships. Hence the satellite port project along with Puducherry port might
face teething problems in the beginning in securing business but could flourish
if economical and promising business concepts are worked out.
As a person from the EXIM trade based in
Chennai what are your suggestions to make the Chennai Port vibrant in the East
Being associated with Chennai port for more than 4 decades, we have
seen the glorious period of Chennai port which then used to be the market
leader among major ports in India. As time passed with several ups and downs,
it is to be noted that Chennai Port is surviving after all the odds, challenges
and competitions. As a dedicated port customer and well wisher following are my
suggestions to Chennai Port:
Chennai port was the first port in the country to introduce anchorage
bunkering. During the initial stages it catered to few vessels by supplying
bunkers at Anchorage but now the bunker traffic has come to a stand-still.
Chennai Port anchorage is considered one of the strategic points for bunkering
taking into consideration the calm nature of the sea.
Bunkering can fetch profitable revenues to the port where investment
from the port requires none. Countries like Singapore, Sri Lanka and Fujairah
serve us a perfect example of revenue earned from bunkering vessels. Chennai Port
should re-consider and plan efforts to develop more bunkering operations at
Chennai port under the guidance of the Shipping Ministry should form a
Task Force The Task force should comprise of the Port’s highest authority,
Customs, Immigration and most important sections from the trade (i.e.
importers, exporters, ship agents, charterers, etc) . This committee should
meet once in fortnight and important proposals and solutions to be decided and
reported to the MOS.
Chennai Port should market with customers directly. Marketing
strategies should be on par with the private ports. Processing customers’ proposals
should be executed at the earliest and not to exceed beyond 7 working days.
Customer should sense ‘Ease of doing of Business’ concept with Chennai port.
With development and the modernization of new passenger terminal,
Chennai port should market for Passenger / Cruise ships. Chennai port is
located in strategic position where connectivity for tourist bound locations is
Chennai port should find ways and means to handle coal cargoes again.
Though Madras High court had pronounced judgment on this matter, Chennai Port
should consult its legal advisors and find possibilities to handle coal cargo
Three decades ago there was one Chennai
port to cater to the requirements for the three southern states. But now there
are three major ports around Chennai sharing the same hinterland. How difficult
is it to attract traffic?
Under the Govt of India Sagarmala’ project, Chennai port is sharing
its business with other major and minor ports. My personal views are as follows
regarding the situation:
- Competition and Efficiency will be valued.
- Customer satisfaction and choices can be reviewed.
- Competitive rates can be introduced.
- Manufacturing and factory units will be restored near such ports. In
the past it used to come up near ports like Kolkata, Mumbai and Chennai but has
drifted deep into heartland. Port based manufacturing reduces logistics costs
drastically. In the absence of new ports under ‘ Sagarmala’ and if only one
port prevails then exporters and importers would suffer high logistics costs
via rail or road taking present connectivity issues. More ports merrier for the trade.
Example: In India,
every street has 2 to 3 Tea shops. How come all Tea Shops run successful?