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Tamil Research Institute<br />

RAPID TECHNO-ECONOMIC FEASIBILITY REPORT FOR<br />

DEVELOPMENT OF COLACHEL PORT AT TAMILNADU<br />

FINAL REPORT<br />

1. BACKGROUND<br />

1.1. GENERAL<br />

Container traffic in India has seen tremendous growth in the last decade. The traffic has grown by more than<br />

10% CAGR. The traffic is expected to continue growing at this rate as the global economy recovers and India's<br />

GDP growth rate accelerates back to 7 – 8% YoY growth. The demand for container traffic can further<br />

accelerate if the plans for debottlenecking of logistic infrastructure are implemented in time and the 'Make in<br />

India' push drives greater exports and manufacturing outsourcing to India.<br />

In order to support this accelerated cargo growth and also, to enable 'Make in India' initiatives, it will be<br />

important to plan additional capacities and drive greater port productivity.. As of now, there are only a few ports<br />

in India that have sufficient draft and match global cargo handling efficiencies.. This has resulted in a large<br />

percentage (~25%) of containers that originate from India to be trans-shipped in foreign ports such as Colombo,<br />

Singapore, Klang etc. This is leading to an economic loss for the country and an economic dependence on<br />

foreign ports. Hence, the Ministry of Shipping (Government of India) through VOC <strong>Port</strong> Trust has asked the<br />

consultant to identify a suitable site and assess feasibility of developing a new container trans-shipment port on<br />

the Southern coast of India near Colachel.<br />

Colachel is located on the south-west coast of India. It is a strategic location given its proximity to the<br />

international East-West shipping route. This route accounts for a major share of the total global container traffic<br />

flows and the mainline vessels use this route for transporting cargo between US, Europe and Asia. A significant<br />

share of India's current container cargo also moves through this route. The following figure shows proximity of<br />

Colachel to the east-west mainline shipping route.<br />

Colachel<br />

14 NM<br />

~1-2 hours<br />

Figure 1: Proximity of Colachel to main shipping line<br />

CP1832-FR-CP-FinalReportRevised-Report-Ed1.docx 17<br />

www.tamilri.com

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