Enayam Port

Tamil Research Institute
RAPID TECHNO-ECONOMIC FEASIBILITY REPORT FOR
DEVELOPMENT OF COLACHEL PORT AT TAMILNADU
US West Coast to India route FINAL (without REPORT Cabotage): Singapore,
Klang most cost effective for this route
Cabotage waived for Colachel
Assumptions for analysis
1. Assumes port costs parity with Colombo
2. Assumes feeder rate parity with Colombo
West Coast of America to Mundra West Coast of America to Chennai West Coast of America to Kolkata
TS Points
Feeder Shipping Cost
Liner Shipping Cost
Colombo 46 320 366
15
320
335
40
320
360
Singapore 93 158 251
53
158
211
53
158
211
Klang 88 177 265
48
177
224
47
177
224
Cochin 52 363 415
31
363
393
68
363
431
JNPT 22
435
457
66
435
500
105
435
539
Krishnapatnam
57 326
383
57 326
383
57 326
383
Colachel 39 336 375
16
336
352
42
336
378
0 200 400 600
Shipping Cost / TEU
(in USD)
Cost difference driven by 2 levers
• Difference in size of the vessel in the routes
• Difference in bunkering costs in TS hubs
0 200 400 600
Shipping Cost / TEU
(in USD)
Significant Cost
disadvantage for Colachel
Limited scope for Colachel to compete against S'pore, Klang even
with Cabotage waived
Source: BCG Benchmarks on bunker consumption and vessel opex; Bunker costs for IFO 384 as of Apr 7, 2015 from "Ship & Bunker", BCG estimates
0 200 400 600
Cost competitive for
Colachel
Shipping Cost / TEU
(in USD)
Cost advantage for
Colachel
Figure 66: Comparison of shipping costs (3)
It is evident from the above analysis that Enayam, like Colombo will be at a competitive advantage versus
Singapore and Klang for traffic moving to East Coast of US and Europe from West and South Coast of India
(Chennai) and will be only at a marginal disadvantage for Cargo emerging from East Coast of India. On the
other hand, Enayam will be at a significant disadvantage for the traffic moving to West Coast of America versus
Singapore and Klang. These findings have been incorporate while building traffic share estimates for Enayam.
Further, the scale of operation impact has also been studied to determine the share potential. Currently,
Singapore and Klang have significant scale which makes it attractive for liners to use as aggregation and relay
hub for cargo across many routes. This is to bring down overall cost for liners, even if it increases cost on this
specific route. This factor has also been incorporated while estimating target share for Enayam
Traffic Share Assumptions
Traffic moving to East Coast of America and Europe
o Share of current traffic through Colombo: ~50% can be moved to Enayam in base case
o Share of current traffic through Singapore/ Klang: 25% can be moved to Enayam in base case
Traffic moving to West Coast of America
o Share of current traffic through Colombo: ~50% can be moved to Enayam in base case
o Share of current traffic through Singapore/ Klang: