Union Cabinet approves setting up a Major port at Enayam near Colachel in Tamil Nadu
The Union Cabinet has given its in-principle approval for setting up a Major port at Enayam near Colachel in Tamil Nadu. On completion the port will become country’s 13th major port.
The Enayam Major Port project seeks to make India a trans-shipment hub for the global East-West maritime trade route.
Enayam Major Port project
- For development of this port, a Special Purpose Vehicle (SPV) will be formed with initial equity investment from the three Major Ports in Tamil Nadu.
- They are V.O.Chidambaranar Port Trust, Kamarajar Port Limited and Chennai Port Trust.
- The SPV will develop the port infrastructure including construction of breakwater, dredging and reclamation, ensuring connectivity links etc.
- Major port at Enayam will act as a major gateway container port for Indian cargo that is presently trans-shipped outside the country.
- It will help to reduce the logistics cost for exporters/importers in South India who currently depend on trans-shipment other foreign ports, incurring additional port handling charges.
- The Enayam port has a natural deep draught of about 20 metres which makes it feasible for larger vessels.
- It has 10 million TEUs (twenty foot equivalent units) capacity and later can be expanded to 18 million TEUs.
- At present, there are only a few ports in India that have sufficient draft and can match global cargo handling efficiencies.
- Currently, around 78% of the marine traffic from the east coast ports of India is trans-shipped to Colombo, Singapore and Klang (Malaysia).
- The traffic is transhipped form India as there are only a few ports in south India that have a draught to match global cargo handling efficiencies and function as a trans-shipment hub.
- Due to this diversion, Indian port industry is losing out up to 1,500 Crores Rupees of revenues each year.
Note: India has 12 major ports at present. They are Kandla, Mumbai, JNPT, Marmugao, New Managlore, Cochin, Chennai, Ennore, V.O. Chidambarnar, Visakhapatnam, Paradip and Kolkata (including Haldia).
Month: Current Affairs - July, 2016