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Enayam Port

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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 />

4. KEY IMPERATIVES FOR ENAYAM PORT<br />

The success of <strong>Enayam</strong> port depends on its ability to convince the shipping liners to re-route their traffic from the<br />

competing ports to <strong>Enayam</strong>. Liners take a long term view and consider several factors while deciding their<br />

preferred port of call.<br />

Dipstick market test: As part of the study, the consultants have spoken with all leading shipping liners, leading<br />

Indian and International port operators and also studied in detail how other major container ports in the world<br />

have fared to understand the 'key imperatives' for <strong>Enayam</strong>. While, these key success factors have been analysed<br />

with the view of establishing a large competitive trans-shipment port, the same factors are also applicable for<br />

attracting gateway container traffic.<br />

Basis these discussions, the following imperatives have been identified for ensuring success:<br />

1. Deep draft<br />

2. Proximity to main shipping routes<br />

3. Scale of operations and sufficient capacity<br />

4. Support and assurance of gateway traffic<br />

5. Sufficient feeder capacity and cost efficient network<br />

6. Competitive overall logistic economics<br />

7. Efficient customs approval process<br />

8. Hinterland road and rail connectivity<br />

9. Cheap bunkering services<br />

1. Deep Draft<br />

The Suez route accounts for a major share of the total global container traffic flows and the mainline vessels use<br />

this route for transporting cargo between US, Europe and Asia. Nearly ~80% of India's current container transshipment<br />

cargo also moves through this route.<br />

Liners prefer minimum deviation from their routes when selecting a trans-shipment port. As described in the figure<br />

below, it is clearly evident that all ports on east and west coasts of India are located at a distance of >1 day of<br />

voyage from the shipping route, which makes these locations unattractive for trans-shipment.<br />

2. Proximity of main shipping routes<br />

Global vessel sizes have significantly increased in the last decade and most main liner vessels have capacities of<br />

10,000 TEUs and above, with the largest vessel reaching a capacity of 18,000 TEUs. Hence, availability of<br />

adequate draft has become an important factor in attracting shipping lines. The current Indian ports which are<br />

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