Union Cabinet approves setting up a Major port at Enayam near Colachel in Tamil Nadu

July 6, 2016

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.

Key Facts

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.

Background

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).

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