Enayam Port

Tamil Research Institute
RAPID TECHNO-ECONOMIC FEASIBILITY REPORT FOR
DEVELOPMENT OF COLACHEL PORT AT TAMILNADU
FINAL REPORT
Inflation risk
The possibility that the actual inflation rate will exceed the projected inflation rate.
This risk is to be borne by the infrastructure developer, whether government or
private player.
Table 59: Legal and contractual risks
17.2. REVENUE RISKS
Types of risk
Risk description and mitigation
Risk of traffic volumes
Traffic volumes projected for the port (which forms the basis of capacity planning of
the port) is subjective to Enayam port being competitive to major trans-shipment hubs
on key metrics like productivity, availability of feeder network etc. It is necessary
that all the key imperatives as mentioned in the Key Success Factor chapter are
implemented on ground
Risk of cost pressure on tariffs
Tariff structure of Enayam would need to be competitive with major trans-shipment
hubs. Any escalation of costs due to increase in labour rates etc. can make it
difficult to maintain competitive tariffs. Strong cost control mechanisms including
efficient manning, procurement etc. should be put in place from the onset.
Risk of price war
Competing trans-shipment hubs in the region may .respond in price war once they
start losing traffic to Enayam. Enayam should focus on getting into long term
contracts with shipping operators and try to attract investments from them .
Risk of new competitor taking share
of traffic
New competing port in the region may take away part of Colachel's share. For
Indian competitors, GoI must measure impact on Colachel's traffic before
commissioning new container hub in the region.
Table 60: Revenue risks
17.3. TECHNICAL AND ENVIRONMENTAL RISKS
Types of risk
Risk description and mitigation
Risk of flood
Tamil Nadu is a high rainfall region that experiences localised flooding due
to heavy rainfall especially during the SW monsoon, resulting damage to
life and property. The Colachel district comes in high risk zone. Since a
number villages in the district are flood affected areas. The project can be
affected by flash floods, which occurs on the coast when high intensity
rainfalls in a localised area happens over a short period of time, in
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