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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 />

Year 2045<br />

Year 2035<br />

Year 2025<br />

Current<br />

Cargo Growth Estimates<br />

Transshipment potential<br />

% share for Colachel<br />

Total<br />

Containers<br />

traffic of India<br />

Estimation of TS<br />

traffic<br />

1. Map key container<br />

traffic routes to/<br />

from India<br />

2. Estimate % share<br />

of transshipment<br />

on each of these<br />

routes<br />

3. Identify Cargo<br />

origin/ destination<br />

ports and<br />

transshipment<br />

hubs on each<br />

route<br />

1. Calculate end to end cost<br />

economics for current<br />

transshipment cargo<br />

through hinterland ports vs.<br />

gateway through Colachel<br />

2. Identify contours of cost<br />

indifference<br />

3. Estimate cargo traffic in the<br />

region unfavorable to<br />

Colachel<br />

Converts to Gateway<br />

1. Calculate end to end cost<br />

economics for current<br />

transshipment cargo<br />

through hinterland ports vs.<br />

gateway through Colachel<br />

2. Identify contours of cost<br />

indifference<br />

3. Estimate cargo traffic in the<br />

region favorable to<br />

Colachel<br />

1. Identify routes / O/D pairs<br />

that are cost economical<br />

through Colachel<br />

2. Split traffic on favorable<br />

routes by lines – identify<br />

key liners to be attracted<br />

3. Identify key imperative<br />

assess Colachel's ability<br />

to win share<br />

4. Estimate target share of<br />

traffic by route / liner<br />

% share for Colachel<br />

% share for Colachel<br />

1. Assume a higher traffic<br />

share %age given favorable<br />

cost economics<br />

Total<br />

Colachel<br />

Traffic<br />

Figure 70: Description of methodology<br />

2. Trans-shipment cargo<br />

b. Trans-shipment cargo getting converted to gateway cargo<br />

Direct shipment of containers through <strong>Enayam</strong> instead of trans-shipment through Colombo will have a cost<br />

advantage for most exporters/ importers in the hinterland. The cost- benefit analysis is explained in figure below.<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 />

Krishnaptnam<br />

400<br />

354<br />

383<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 />

Chennai<br />

% of TS<br />

converted to<br />

direct cargo<br />

CHENNAI 810 20-40%<br />

200<br />

0<br />

Madurai-<br />

Tuticorin-<br />

Colombo-<br />

Europe<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 71: Trans-shipment traffic converted to gateway traffic through <strong>Enayam</strong> (I)<br />

84<br />

www.tamilri.com

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