‘Chennai Port may lose cargo deals in 5 years’

Source:http://expressbuzz.com/cities/chennai/%E2%80%98port-may-lose-cargo-deals-in-5-years%E2%80%99/231391.html

By G Saravanan

Published in The New Indian Express, Chennai, on December 15, 2010:

CHENNAI: In light of the recent container trailer drivers’ strikes over the last two months, traders depending on the country’s eastern gateway have warned that the historic Chennai Port might lose all cargo movement in five years’ time.

Sources said if the port management did not immediately address issues related to opening of more gates for trailer movement and repair of roads leading to the port, it would lose both break-bulk and containerised cargo to other ports along the east coast.

R Muthukrishnan, president of the Inter-State Container Transport Owners’ Association, said, “Despite several representations to the port management for years, both the gate and the road issues still persist and we hold the port trust authorities responsible for the mess, as they never thought about improving facilities for port users.”
Resentment against the port management was brewing among importers and exporters for the failure to improve basic facilities, he said. This, he added, might make them shift their trade to other ports which offered better facilities than Chennai.

Since the port attracts cargo ships and direct mainline vessels for container transport, traders it for all their transactions. But, the phenomenal growth of two ports near Chennai — Ennore Port and Krishnapatnam Port — could wipe off the handling capacity of Chennai Port in coming years.

The Ennore Port would be commissioning its world-class container terminal in two years, while the Krishnapatnam Port — located about 180 km away — is slowly increasing its coal and iron ore handling capabilities. Incidentally, both container and break-bulk cargos are the main revenue source for Chennai Port.  Although the Chennai Port has two container terminals with world-class handling facilities and plans for a mega container terminal are afoot, all facilities will pale in comparison if the issues are not addressed.  P Ravichandran, who regularly  exports granites through the port, said, “Due to sudden strikes in Chennai, we are not able to meet our commitments made to importers. If the situation persists, we would be forced to move to other ports which suit us.”

Chennai Port plans for more freight traffic for railways

CHENNAI: Chennai Port Trust authorities on Tuesday conveyed that they were considering roping in the railways to ferry more cargo from port premises to reduce their dependency on trailers.

Referring to recent trailer owners’ strikes, chairman of the trust Atulya Misra said, “We (the port trust) cannot be held responsible for whatever is happening outside the port premises and they (trailer owners) often hold us to ransom with their sudden strike decisions.”

“Right now, the railways ferry about seven per cent of cargo from the port. Since the trailers’ strikes dent our image among traders, we have planned to increase the railways’ share to about 30 per cent in future to reduce dependence on trailers in ferrying cargo,” he added.

On the issue of closure of gates for trailers, Misra said, “We are ready to open all possible gates that can be used for cargo movement. But, restrictions put up by other agencies prevent the port management from opening them.” Asked whether the port was losing its competitive edge due to regular disruptions in cargo movement, he said, “If such strikes occur regularly, they will definitely affect the port’s edge over rival.