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3.1 Vision and Goals

3.1.1 Management Vision for the Next 20 Years

Develop as a mega port with World Class facilities to become the Eastern gateway Port of India.

3.1.2 Goals to be achieved in the Next 7 Years

The goals for the next 7 years are to execute the following projects selected to create port capacities to handle marine liquids, coal, iron ore and containers and to provide the supporting infrastructure.

Projects:

• Marine Liquid Terminal to handle POL, LPG, chemicals and other liquid bulk cargo

• Coal Terminal to handle coal for various users other than Tamil Nadu Electricity Board (TNEB)

• Iron Ore Terminal to facilitate export of iron ore by various users • Container Terminal (Phase 1) to promote export/import of containers

• Organise installation of additional shore based unloaders in the existing coal berths when required for TNEB / TNEB – NTPC JV power plants.

The plan at Figure 3.1 shows the location of the berths.

Supporting Infrastructure:

• Dredge the berth areas of marine liquids, coal and iron ore terminals to -15m depth in Phase-I and land raising for Coal and Iron Ore stackyards.

• Dredge the berth area of Iron ore terminal to –18.0m, port basin to –18.5m and channel to –20.0m in Phase-II

• Dredge the berth area of container terminal to -15m in Phase III.

• Establish rail connectivity to the coal, iron ore and container stack yards. • Establish road connectivity to the coal, marine liquid and container terminals

• Develop other common infrastructure to improve port’s attractiveness. This includes organising development of buffer yards and portside (rail) container yards.

• Develop Green belt.

3.2 Strategy

The strategy has to address the following issues:

Development Strategy:

• Develop cargo terminals through private sector participation.

• Undertake the required capital dredging and essential road and rail connectivity works.

• Acquire additional lands to support the long term development of port facilities. This refers to both the immediate requirements mentioned in section 2.5 as well as additional long term requirements discussed in section 3.3 below.

• Develop core manpower to achieve an optimum and effective core strength. • Outsource specialised expertise as and when required.

• Monitor and co-ordinate the activities among the BOT operators, EPL and interfacing Departments/Agencies to maintain the time frame.

• Continuous market studies and updates future development and operations. • Commission feasibility study for construction of a multipurpose berth to

handle cars, granite blocks, project cargo and other clean unit loads.

• Co-ordinate with State and Central Government Departments to improve access roads and rail connectivity.

• Act as a business facilitator.

Commercial Strategy:

• Maximise utilisation and revenue earnings of the existing coal berths and temporary handling facilities for POL and iron ore.

• Encourage temporary (improvised) cargo handling facilities ahead of regular terminals in line with market demand to be set up under private investments. • Expedite transfer of 486 ha (1,200 acres) of Salt Department Lands at

• Introduce a cost centre system to ensure timely and accurate monitoring of forthcoming BOT agreements.

• Review and fix the tariff for vessel related charges other than berth hire for the berths constructed by the BOT operators on commercial basis.

• Draw up suitable tender conditions to avoid excessive market exploitation by BOT operators.

• Form joint ventures with stakeholders to increase port throughput.

Financial Strategy:

• Mobilise private sector funding for developing cargo terminals.

• To the extent possible, obtain Government funds for basic infrastructure investments like capital dredging.

• Mobilise additional funds through equity or loan for funding common infrastructure works.

• Explore the possibilities of forming Joint Venture with the beneficiaries like TIDCO, National and State Highways, BOT operators, Railways, RVNL and other stakeholders for investments on road and rail connectivity.

3.3 Long Term Development

The short term projects included in the Business Plan for EPL allow EPL to increase capacity from the present level of 12 MTPA to 42 MTPA for bulk cargo, and 18 MTPA containerised cargo aggregating to 60 MTPA. This will be sufficient to cater for the projected traffic well into the second half of the next decade. To cater for projected traffic volumes thereafter, two principle options exist for EPL.

a) Further extension of the nascent dock basin created through the container terminal in a north-south direction.

b) Creation of one or more harbour basins in an east-west orientation. The first basin could be established north of the first container terminal.

The latter solution has initially been proposed at the time Ennore Port was first conceived. The former solution is presently preferred by EPL management and has the advantage that a continuous quay of several kilometres in length could be established. Compared thereto, the possible length of one or more dock basins with an east west orientation would be limited by the stack yard of the new common user coal and iron ore terminals and the NCTPS ask dykes. There are also concerns that creating a number of dock basins with an east-west orientation can create environmental problems, if they require alternations to Buckingham Canal or Ennore Creek. It is outside the scope of this Business Plan to address the long term

development aspects in any detail. This should be addressed by EPL in the medium term future, e.g. in conjunction with the next revision of the master plan.

Having said the above Figure 3.1 over leaf shows how the long term development might be approached, based on the alternative presently preferred by EPL management. Figure 3.1 shows the expansion with a northern dock arm stretching to 2,250 m quay length in the west and 850 m quay length in the east to accommodate future berths. This dock arm can be further extended northwards with ship manoeuvring area as shown in Figure 2.3 (see page 2-16). Such extension can accommodate more berths in the long run.

A key issue that EPL must thereby address is the availability of additional land to accommodate the long term development perspective. Provision must be made for both port facilities and port related infrastructure (such as roads, rail connections, etc.) as well as auxiliary facilities (container depots, commercial zones, …). It is outside the scope of this assignment to exactly specify the amount of land required as it will depend on which development alternative EPL finally prefers. However, the following points and comments are worthwhile mentioning:

• The present land available would suffice to add either:

o A further container terminal with a maximum capacity of around 2 million TEU and perhaps 3 bulk berths. However, there would not be sufficient land for bulk storage yards; or o One or two additional bulk berths including related storage yards.

One additional bulk berth will most probably be thereby required to address additional needs for coal handling to the order of 5 MTPA that TNEB has addressed to EPL in March 2007. This may be located adjacent to the present TNEB power station in close proximity to the berth.

Furthermore, it is a present planning principle of EPL to clearly segregate dirty bulk cargo and clean cargo (hence the location of the coal and iron ore stack yards west of Ennore Creek). Therefore, additional land outside the present boundaries will be required to develop further bulk berths.

• Land presently under control of EPL will be sufficient to cater for future traffic development until sometime in the second half of the next decade. • An extension of the dock basin as shown in Figure 2.3 will require the

minimum additional land of 210 ha as discussed in section 2.5 above. The extension of the dock basin will however require much of the presently available land in the north east and will severely limit the possibility to create additional bulk storage areas should a second container terminal be established next to the presently planned container terminal.

• The proposed phase II for the SEZ will conflict with any northward extension of the dock basin. As TIDCO is already understood to be in an advanced planning stage, it is strongly recommended the EPL quickly approach TIDCO and agree on a different location, e.g. to the north of the proposed Northern Port Access Road.

• An initial comparison with other ports with a similar cargo mix would suggest that the long term land requirement might easily be to the order of 2,500 to 3,000 ha, which is more than fourfold of the present land available. The undeveloped nature of surrounding land is a substantial advantage for Ennore Port as there is still potential to create the reserves required to secure the long term development and it is necessary that EPL address this problem now with high priority mitigate any future possible constraints.

Figure 3.1: Projects under 7-Year Action Plan and Provision for Long Term Development

4. OVERVIEW OF INVESTMENTS