Private sector participation in operations and infrastructure activities at seaports has resulted in a radical change in the organisational model of ports, converting from service port model to landlord port model, where port authority retains the port infrastructure and regulatory functions, whereas the port services are provided by private operators.  Ennore Port is one such port and the only corporate port owned by the government. Originally conceived as a satellite port to Chennai Port to handle thermal coal to meet the requirements of Tamil Nadu Electricity Board (TNEB), the port has come a long way since then and is all set to become Asia’s energy port. Ennore Port has attracted private investments to the tune of Rs 1,200 crore for building coal, iron ore and marine liquid terminals.

Meanwhile, the construction of the car terminal is going at a steady pace and exports are likely to begin in August 2010. The Port Chairman S Velumani has signed an agreement with Nissan India, the car maker which will use the terminal to ship out 180,000 cars. Built at a cost of Rs 110 crore, the car terminal will have a 175,000 sq metre parking yard, the chairman says as he shares his port initiatives with Ramprasad.

Ennore Port is primarily into coal imports and iron ore exports. How has the business been and what are your expansion plans?
Ennore Port was commissioned in 2001 to handle coal imports. Only customer at that point of time was Tamil Nadu Electricity Board (TNEB). Berths with a capacity to handle 12 million tonnes were set up for them. Currently they are bringing about 9.7 million tonnes. We do not have full-fledged permanent facility to handle iron ore exports. We have set up temporary conveyor and barge loading jetty. Last year, we did about 1.2 million tonnes because of several constraints.

Now expansions are going on. One thousand two hundred-megawatt (600x600) North Chennai power station plant is coming up. Another power project with 1,500 (3x500) MW capacity is coming up as NTPC-TNEB joint venture. TNEB is planning another power plant towards north of the port. Their indication is that by 2012-12 they will bring in 35 million tonnes of coal. To meet all the future demands, we are planning third coal berth. Right now, we are into the second phase of expansion of the port. We are putting up a 12-million tonne iron ore terminal. A coal terminal with the capacity of handling 8 million tonnes per annum for non-TNEB users is also coming up.

How is the liquid terminal doing?
It takes some time to pick up. Unless a big consumer comes, business has to grow gradually. Indian Oil Petronas is planning LPG imports. Similarly HPCL is developing its terminal.

You have been planning a new terminal. What is the status?
Nissan car factory is coming in Oragadam. They have plans to export cars to European market. We signed an MoU with them. Production will commence from July 2010. Nissan’s plan is to export about 1, 80,000 cars. We will be constructing a berth and a stockyard. Other automobile manufacturers also can use this facility.

Ennore Port will be a full-pledged multi-cargo port. Keeping that in view, we have planned a container terminal. This will be 1,000 metres long. We will be providing 16 metres draft. And, the berths will be designed in the latest generation container vessels. Major advantage is that we have sufficient land to develop that kind of infrastructure. We are planning a straight 21-km long expressway linking to NH5. The trucks need not enter city. We will be meeting the land acquisition cost, which is about 78 crore.

Do you see competition from the nearby ports?
Yes, but this is the era of competition. We have been competing with Chennai Port.  There is a proposal to develop a shipyard-cum-port just north of Ennore Port. That is a competition coming up. If you further go up north, Krishnapatnam is another port with which we’ll be competing. But each port will have its inherent advantages and disadvantages. Finally, it depends on the performance of port operator.

What are the modern facilities at the port?
We handle nearly 10 million tonnes of coal. But you do not see a speck of dust. There is no manual handling and it is completely mechanised. Ennore Port was the first port to get subjected to environmental appraisal process. Right from the planning stage, we ensured that pollution will be abated. You can see lot of vegetation around and birds nesting here. Both land and marine environment are protected.

What are your goals?
First is to become a multi-cargo port and next, to handle 50 million tonnes of cargo per annum.