Chennai set to build 'mega' box terminal

Chennai Port is moving ahead with a plan to build the 36.86 billion rupees ($818 million) mega container terminal after receiving clearance from India's Private Public Partnership Advisory Committee (PPPAC) earlier this year.

The approval has paved the way for the issue of a RFP (request for proposal) for the country's first mega container terminal at Chennai port on a build, operate and transfer (BOT) basis, local reports said.

Considered to be the most ambitious port project in the region of Tamil Nadu, the mega terminal is designed to increase the port's annual container terminal handling by 4 million TEUs from the present capacity of 2.2 million TEUs.

The port's gigantic proportions will feature 2-kilometre (km) quay length in a straight line at the new outer harbour, with a 2.75-km extension of the existing outer arm breakwater and a new northern breakwater of 1.73 km emanating from the eastern breakwater of the fishing harbour.

According to the Chennai Port Trust chairman K Suresh, "There is a huge potential for growth and development for container trade in India in general, and the Chennai port in particular.

"The elevated corridor from Chennai port to Maduravoyal and the Ennore-Manali road projects are crucial for the success of the mega terminal."

Suresh added that the mega container terminal project has "created a buzz in the shipping circles, will enable the port to achieve its long-term vision of becoming a major international hub for containers and clean cargo".

The rail connectivity to the port should will also be enhanced for easy evacuation of containers from the port.

Eight companies, including DP World, L & T Transco and IL & FS Maritime Infra Co Ltd, have shown interest in the project.

The terminal will be designed to facilitate berthing of ultra large container ships (ULCC) of 15,000 TEUs and above.

Initially, the port will have 18 metre composite depth (MCD) water depth at the berths, which can be further deepened to 22 m CD, depending on the size of the vessels calling at the terminal.

By 2012-13, the Chennai port would have the capacity to move 7 million TEUs.

Chennai port has been recording container throughput of over one million TEUs in the last two years.

It is expected that the mega terminal will cater to this demand for the next 30 years.

Also, it would be in Chennai port's interest to develop facilities to cater to the latest generation of vessels so as to exploit the sharp increase in cargo volumes