The cost of building the Mega Container Terminal at Chennai Port has risen by 21% to $740m,with spiralling dredging rates playing a large part in the price hike.
Chennai Port Trust will be taking on the dredging for the deepwater berths
Unwilling to let its commitment to the planned deep water berths slide, the Port Trust has confirmed that it will now undertake the dredging itself rather than leave it to a private operator to develop.
Chennai Port Trust (ChPT) chairman, K Suresh told Port Strategy that Phase 1 "will see the completion of the breakwater, and the berthing depth increased to 18 metres over the next two years".
However, "depending on the interest from the shipping lines and the port operator", this is expected to increase to a 22 metre deep-water berth by the end of Phase 2. The port is hoping that if the required depths are there, larger ships will find their way to Chennai, building a bridge to further expansion.
Although Chennai already has a dredger, the vessel isn't big enough to take on the needed depths, and so Chennai Port Trust will put the work out to a global tender, said Mr Suresh.
ChPT's vision is that the mega container terminal will handle four million teu a year under a build, operate and transfer (BOT) basis. At present, the port handles 1.1m teu, but it isn't without competition from both DP World and PSA-SICAL who have both invested in port facilities in the southern Indian area.
Chennai Port Trust is investing $321m of the total for the project, with the balance coming from the private sector.
Chennai Port Trust will be taking on the dredging for the deepwater berths
Unwilling to let its commitment to the planned deep water berths slide, the Port Trust has confirmed that it will now undertake the dredging itself rather than leave it to a private operator to develop.
Chennai Port Trust (ChPT) chairman, K Suresh told Port Strategy that Phase 1 "will see the completion of the breakwater, and the berthing depth increased to 18 metres over the next two years".
However, "depending on the interest from the shipping lines and the port operator", this is expected to increase to a 22 metre deep-water berth by the end of Phase 2. The port is hoping that if the required depths are there, larger ships will find their way to Chennai, building a bridge to further expansion.
Although Chennai already has a dredger, the vessel isn't big enough to take on the needed depths, and so Chennai Port Trust will put the work out to a global tender, said Mr Suresh.
ChPT's vision is that the mega container terminal will handle four million teu a year under a build, operate and transfer (BOT) basis. At present, the port handles 1.1m teu, but it isn't without competition from both DP World and PSA-SICAL who have both invested in port facilities in the southern Indian area.
Chennai Port Trust is investing $321m of the total for the project, with the balance coming from the private sector.