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Port hitches put the brakes on industry |
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CHENNAI: For the past year or more V S Karunakaran has had more hassles doing business than he can deal with. A client in the US has been pressing the managing director of Integral Component Manufacturers Pvt Ltd, an auto component manufacturing unit in Irangattukottai Industrial Park, to explore the possibility of bypassing Chennai port and diverting the consignment to Mumbai port for export.
The problem is not new: with poor connectivity and infrastructure and logistic challenges, all of which the government promised to set right, manufacturers who depend on Chennai port have a harrowing time meeting deadlines.
The much publicised Maduravoyal to port elevated corridor and the road connectivity projects between Chennai and Ennore Ports have been caught in a legal tangle and the knock-on effect on industry and exports has been direct.
"It takes two to three weeks from the time a consignment leaves our unit and sails out of the port," Karunakaran said. "The delay is due to a series of factors at the port and delays in clearances. Lack of proper road connectivity to the port is a major issue. All container trailers can head to the port only at night and most of them reach at the same time, causing congestion and hold-ups."
Karunakaran, also president of the Sipcot Irungattukottai Manufacturers' Association, says the port's hitches have had a severe fallout on industry.Statistics from NHAI show that it has completed only 14.79% of the proposed 19km four-lane long elevated expressway, a 1,345 crore project. The state water resources department intervened and stopped work on the expressway on March 29, 2012, alleging that NHAI had erected 32 pillars in the Cooum river that could cause flooding.
The NHAI filed a writ petition in the Madras high court in March 2013 and the court directed the government to cooperate. But the government approached the Supreme Court, which ordered that an expert body review and study the issue.
The second major project, a link between Chennai and Ennore ports, is progressing slowly. Around 88% of the project has been completed but has been stuck due to delays in relocating 94 famillies from Cherian Nagar on Ennore expressway in Chennai and 446 families from NTO Kuppam as well as fishing stalls in front of Gate no. 1 of Chennai port.
"These issues impact us directly because cannot ensure that goods will be delivered to international clients on time," said B Prabhu of Precision Equipments Chennai Pvt Ltd. "Retaining customers and their trust is a tough task."
According to Federation of Indian Export Organisations (FIEO), under the Union ministry of commerce, the cargo handled by Chennai port dropped from 53.4 million tonnes in 2012-2013 to 51 million tonnes in 2013-2014, or negative growth of -4.31%.
"Unless the state government steps forward and takes the initiative to solve the connectivity issue, manufacturers will be soon left with no option but to shift to neighboring states," said K Unnikrishnan, joint deputy director general, Federation of Indian Export Organisations, Southern Region. "Tamil Nadu ranks third after Gujarat and Maharashtra in total export share from the country. But Maharashtra contributes about 22% and Tamil Nadu only 11.5%."
Tamil Nadu accounted for goods worth $35.9 billion of the country's total exports of $312.35 billion in 2013-14, says J Krishnan, chairman, Expert Committee on Logistics. He said proper infrastructure will be key to making the most from the Chennai, Ennore and Kattupalli ports.
Source : timesofindia.indiatimes.com
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