Ennore Port to involve private companies to expand

Private and public sector companies like Larsen &Toubro, Reliance, Chennai Petroleum Corporation and Madras Fertilisers are showing interest in the development of the Rs 1.050 crore Ennore port.

Termed as `Energy Port, it currently has two berths and proposes to add five more in near future. In the next five years, it plans to have a total of 22 berths, each costing anything between Rs.50-70 crore.

There are also plans to set up a chemical park and a 1, 000 MW power plant at Ennore.

The Ennore port will be mainly handling imports of LNG, chemicals, minerals and fertiliser for which more berths and piplelines are required..

The existing berths are dedicated for handling coal for the north Chennai thermal power station.
This is being done without any formal agreement on tariff the port and Tamil Nadu Electricity Board which runs the thermal power station. Port chairman M. Raman decided to make the port operational just in order that the berths and other facilities do not remain idle.

As a result TNEB is saving around Rs.300/t of coal conveyed. Earlier the power plant used get the coal from the Chennai port through railway wagons. The TNEB is planning to convey coal to its other power plant at Ennore from Ennore port via conveyor belt. For this two more dedicated berths are being planned.

Three options are being considered to finance the building of the berths. First, develop the berths in collaboration with some private party and give them out on long term lease. But Mr. Raman doesnt want to commit heavy investments on the part of the company.

That aside, the company is calling for consultants to suggest the land development and use at the shorefront having the proposed industrial projects. Ennore Port has 3,000 acres of back up area for development.

Besides, Ennore Port is going ahead with its privatisation of its marine services - tugs and piloting operation. Twenty two parties have bought the bid documents and the assets will be sold to the successful bidder, says Mr. M. Raman. According to him the company has invested around Rs. 65 crore on marine services.

Speaking about revenues, Mr. Raman is confident of the port handling 10 million tonnes of cargo and earn Rs. 100 crore.