One entity’s loss is another’s gain, and in the case of Chennai Port, it is Kamarajar Port that has benefited. The issue of congestion at Chennai Port, and its inability to carry out certain operations, have forced top players to look for alternatives. Of particular concern are the sectors of car exports and container services to neighbouring ports.
Since 2012-13, Chennai Port has reportedly lost over 1.13 lakh units in automobile exports. At the same time, Kamarajar Port has gained 81,000 units.
In comparison, during 2012-13, Chennai Port handled 2.72 lakh cars as against 1.45 lakh units handled by Kamarajar Port. During the last two years, the volume at Chennai Port has dipped below the two-lakh mark. For 2015-16, car exports through Chennai Port stood at 1.59 lakh. And Kamarajar Port, having taken advantage of the scenario, has emerged as the preferred port for car manufacturers and the exports have crossed the two-lakh mark for the third year in a row.
Among the major car exporters, Nissan, Ford and Toyota shifted their loyalty to the neighbouring Kamarajar Port as Chennai Port is still bogged down by congestion. During February 2016, Hyundai moved 800 cars from Chennai to Gujarat through the sea route.
At that time, it was declared that the company was planning to ship more vehicles on a monthly basis. But, the second shipment is yet to take off through the coastal route.
On the container services front, Maersk Line skipped Chennai Port during its maiden service from Krishnapatnam Port to Salalah, instead calling at the L&T Kattupalli Port.
Talking to The Hindu , a Custom House Agent said that it was not at all surprising that Maersk, one of the biggest shipping companies, called at L&T Kattupalli Port, now being managed by the Adani group. The agent added that in future, one could expect more shipping lines to prefer the L&T Kattupalli Port, and said this would lead to healthy competition.
But Port officials have been concerned and have initiated remedial measures. A Chennai Port official said: “Recently, we launched ‘Mission Resurge — Chennai Port’ to revive our port, as we had already lost a sizeable volume of cargo due to a ban imposed by the Madras High Court on handling iron ore and coal (power plants have long started using Kamarajar, Karaikal and Krishnapatnam ports).
Traffic congestion has also affected the cargo movement in and out of the port, but the official claimed that while congestion remained a problem, the severity had come down. Regarding the parking space constraints, he said, a new parking lot to accommodate 15,000 cars was being developed.
