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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 />

Potential to convert 40-50 % of TS traffic<br />

from South Indian ports to gateway<br />

Economic simulation: ~ 30 % cost<br />

savings for cargo from Madurai district<br />

Contour of indifference<br />

Transport cost per TEU (in USD)<br />

600<br />

-31%<br />

509<br />

Illustration<br />

Area span where<br />

gateway through<br />

Colachel is more<br />

economical than TS<br />

through Colombo or<br />

other hubs<br />

<strong>Port</strong> in hinterland<br />

Cochin<br />

Colachel<br />

TS cargo (in<br />

'000 TEUs)<br />

Tuticorin<br />

Krishnaptnam<br />

Chennai<br />

% of TS<br />

converted to<br />

direct cargo<br />

CHENNAI 810 20-40%<br />

400<br />

200<br />

0<br />

354<br />

Madurai-<br />

Tuticorin-<br />

Colombo-<br />

Europe<br />

383<br />

Madurai-<br />

Cochin-<br />

Colombo-<br />

Europe<br />

TS in<br />

Colombo<br />

Madurai-<br />

Chennai-<br />

Colombo-<br />

Europe<br />

246<br />

Madurai-<br />

Coalchel-<br />

Europe<br />

TS in<br />

Colachel<br />

V.O. CHIDAMBARANAR 433 >90%<br />

Inland cost<br />

Shipping Cost<br />

<strong>Port</strong> handling cost<br />

COCHIN 204 >90%<br />

Note: New Mangalore not considered for analysis as there is is no TS container cargo from New Mangalore<br />

Figure 13: TS traffic converted to gateway traffic through <strong>Enayam</strong><br />

Cochin has limited hinterland cargo from Kerala and requires interstate transport for access to T.N. hinterland.<br />

Long delays in interstate checkpoints (e.g. delays in Walayar can be as high as 18-24 hours) have made it<br />

infeasible for T.N. exporters/ importers to use Cochin for shipping. Colombo, has limited gateway cargo and<br />

>70% of its current traffic is TS traffic. A port at Colachel would aggregate the hinterland traffic wherever<br />

logistics costs are to its favour.<br />

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

As per the traffic projections for trans-shipment traffic at Colachel <strong>Port</strong>, a feeder network with capacity of<br />

~27,300 TEUs for a weekly service would be required in 2025. Currently, the capacity of Indian feeder<br />

network for a weekly service is ~5,100 TEUs, which is expected to grow to only ~8,300 TEUs by 2025.<br />

Indian feeder network will only be able to<br />

serve ~30% of Colachel's demand in 2025<br />

TEUs for weekly service<br />

30,000<br />

20,000<br />

Indian Feeder capacity<br />

Demand at Colachel <strong>Port</strong><br />

-70%<br />

10,000<br />

0<br />

5,100<br />

2015<br />

8,300<br />

2025<br />

27,300<br />

Figure 14: Indian feeder capacity available vs. requirement for Colachel<br />

30<br />

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