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Transport | December 2013

Chennai port plans multi-cargo terminal

The much-delayed Rs 5,000 crore Chennai mega container terminal is now being envisaged as a multi-cargo terminal under a restructuring plan on which the consultant is expected to submit a report within a month. Chennai Port is looking at a multi-cargo terminal instead of just a container terminal-an outer harbour type of project, which will have both container and multi-cargo berths.  

The development of competing container terminals by L&T and Ennore Port would affect the project as they would eat into the estimated demand for the project. The proposed terminal, which is expected to handle 5 million twenty foot equivalent units (TEUs), was conceived in 2006 and expected to be operational from 2013. Bids were invited for the project twice, but on both occasions very few bidders evinced interest and the government found the quotations on revenue sharing too low to be acceptable. The project has also been impacted by evacuation or connectivity issues. The proposed Maduravoyal elevated corridor, which was planned to provide connectivity from the hinterland to the port, has been put on hold by the state government due to alleged deviation from the approved alignment.


The National Highways Authority of India (NHAI), which is implementing the project, is considering canceling the contract if the issue is not resolved since the contractor constructing the corridor will have to be compensated for the delay.


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