THE plan to build a new four million TEU capacity container terminal has been shelved by the Chennai Port Trust for at least two years. The project had been approved by the government in 2010.
An industry source in India told London's Container Management: "The key reasons for deferring the proposal have been prolonged heavy congestion at the port due to infrastructure scarcity just outside the port, poor response from developers and failure to attract a good bidder."
While the project came to a standstill, the Adani Group has started developing a 1.4 million TEU capacity terminal at Kamarajar port and acquired a 1.2 million TEU capacity terminal, L&T Kattupali Port. Both terminals are located within 35 kilometres of Chennai port.
The Chennai Port Trust now reportedly favours prioritising the existing terminals at the port, whose combined volumes have been in decline over the last three years.
Delays in developing road connectivity between the port and the Maduravoyal district of Chennai as well as delays in the completion of the Ennore-Manali Road improvement project have also been cited as reasons for the lack of government interest in the port.
PORTS
25 December 2015 - 20:20
Plan to build new 4 million TEU box terminal at Chennai port delayed
THE plan to build a new four million TEU capacity container terminal has been shelved by the Chennai Port Trust for at least two years. The project had been approved by the government in 2010.
PORTS
25 December 2015 - 20:20
Plan to build new 4 million TEU box terminal at Chennai port delayed
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