Feasibility Report Report EIA

Pre-Feasibility Study on development of a
large multi-user Non-Major Port in

Tamil Nadu
Madras Chamber of Commerce & Industry
FINAL REPORT
Pre-Feasibility Study on development of a
large multi-user Non-Major Port in
Tamil Nadu
Madras Chamber of Commerce & Industry
FINAL REPORT
(Submitted to State Planning Commission in February 2015)
Preliminary Feasibility Study on development of a large multi-user Non-Major Port
TABLE OF CONTENTS
Executive Summary ........................................................................................................... 3
Pre-Feasibility report overview .................................................................................................. 3
Report key findings .................................................................................................................... 4
Proposed site for developing Port facility .................................................................................. 5
Report conclusion ...................................................................................................................... 6
1.0 Introduction ............................................................................................................ 6
1.1 Background......................................................................................................................... 6
1.2 Rationale for the Project .................................................................................................... 7
1.3 Feasibility Report objectives and outline ........................................................................ 8
2.0 Tamil Nadu State Profile .......................................................................................... 9
2.1 Tamil Nadu Economy - an overview ................................................................................... 9
3.0 Indian Port Scenario: An Overview ........................................................................ 16
3.1 Traffic handled.................................................................................................................. 17
4.0 Tamil Nadu Ports Profile & Policy Framework ........................................................ 18
4.1 Tamil Nadu Minor Ports Policy ........................................................................................... 20
5.0 Tamil Nadu Industrial Regions ............................................................................... 22
5.1 Review of Govt. of India statistics & previous reports on the subject ............................. 24
6.0 Traffic Growth Potential Assessments ................................................................... 25
6.1 Traffic growth projections as per Govt. of India statistics ............................................... 25
6.2 Tamil Nadu central hinterland industries & cargo potential ............................................ 28
6.2.1 Karur ................................................................................................................................. 28

6.2.2 Namakkal .......................................................................................................................... 29
6.2.3 Tirupur............................................................................................................................... 29
6.2.4 Perambalur........................................................................................................................ 30
6.2.5 Ariyalur ............................................................................................................................. 31
6.2.6 Thiruchirapalli ................................................................................................................... 31
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6.2.7 Cuddalore.......................................................................................................................... 32
6.2.8 Puducherry........................................................................................................................ 33
6.2.9 Villupuram ......................................................................................................................... 34
6.2.10 Salem ................................................................................................................................. 35
6.2.11 Erode: ................................................................................................................................ 36
7.0 Assessment of Potential Traffic.............................................................................. 37
7.1 Introduction ...................................................................................................................... 37
7.2 Cargo potential analysis ................................................................................................... 37
7.2.1 Coal ................................................................................................................................... 38

7.2.2 Cement .............................................................................................................................. 53
7.2.3 Sugar ................................................................................................................................. 57
7.2.4 Fertilizers ........................................................................................................................... 61
7.2.5 Petrochemicals .................................................................................................................. 65
7.2.6 Vegetable oils .................................................................................................................... 68
7.2.7 LNG .................................................................................................................................... 71
7.2.8 Containers ......................................................................................................................... 77
8.0 Competing Port Facility Analysis in Tamil Nadu ...................................................... 86
8.1 Other proposed captive ports .......................................................................................... 88
9.0 Key Findings & Rationale for Developing a New Greenfield Port Facility ................. 95
9.1 Summary of potential traffic at new Greenfield port ...................................................... 97
10.0 Location & Site Proposed for Development of New Greenfield Port Facility ........... 99
10.1 Status of License issued for Silambimangalam minor port .............................................. 99
10.2 Overview of Silambimangalam ship yard port ............................................................... 102
10.3 Locational advantage & conditions of the project site .................................................. 103
11.0 Preliminary Port Layout ....................................................................................... 105
12.0 Block Cost Estimates ........................................................................................... 110
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EXECUTIVE SUMMARY
The Tamil Nadu State Planning Commission (TNSPC) has taken up the task of assessing demand for developing
a multi-user Greenfield port facility in Tamil Nadu and have commissioned the Madras Chamber of Commerce
& Industry (MCCI) to undertake a Pre-Feasibility study on Development of a Large Multi user Non Major port
in Tamil Nadu.
PRE-FEASIBILITY REPORT OVERVIEW
Power Generation is the primary contributor to Industrial growth of any nation. Over the last few
years, Tamil Nadu has been experiencing an acute power deficit. In order to address this crucial issue,
the Tamil Nadu Vision 2023 document places a very high focus on remedying this situation and
fulfilling this short-fall by adding 20,000 MW of thermal power generation capacity to the State
besides developing at least two LNG terminals with capacities of about 5-6 million tons per annum.
As of this writing, the report has identified about 24,000 MW of planned thermal power generation
proposals by private entrepreneurs in the central Tamil Nadu region. This planned capacity addition
is only in the Central Tamil Nadu region and excludes any capacity additions proposed in the
Northern & Southern parts of Tamil Nadu.
Most of the 24,000 MW capacity addition proposed by private entrepreneurs is through development of coast
based thermal power plants with a captive marine coal import facility for coal imports. Assuming that even if
only 15,000 MW of the proposed 24,000 MW is added by the year 2035, the coal requirements would be about
53 Million Metric Tons Per Annum (53 MMTPA). Taking an extremely conservative view whereby even if 50% of
this projected volume of 53 Million Tons required for generating 15,000 MW is to be handled, i.e. 27 Million
tons per annum, there exists no suitable Port facility with adequate infrastructure in the Cuddalore
Nagapattinam belt geared to handle these projected coal volumes.
Despite being a conservative estimate, the volume of coal alone required for thermal power generation has
been estimated at 27 Million Tons per annum by the year 2035. In addition, coal requirements for cement &
Sugar industries etc. add to this and total to an estimate of about 33 Million Tons per annum in the Cuddalore
Nagapattinam region.
In its final traffic assessment, the study report estimates a total cargo volume of about 60 Million tons per
annum by the year 2035 from coal, cement, sugar, fertilizer, container, vegetable oils, crude oil for a proposed
Petroleum refinery in Cuddalore, which is presently under development and only partly completed, as well as
nd
developing a 2 LNG Terminal as envisaged in Tamil Nadu Vision 2023.
Further, a Petroleum Chemicals and Petrochemicals Investment region (PCPIR) has been approved by the Govt.
of India for Cuddalore Nagapattinam region in 2012. The development of the PCPIR will generate additional
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cargoes, the quantum of which cannot be accurately ascertained at this stage, suffice to say that there will be
additional traffic generation by way of liquid bulk, containerized & project cargoes which have not been
estimated in these traffic projections of 60 Million tons per annum.
REPORT KEY FINDINGS
The Key findings & rationale for developing a new Greenfield Port facility has been summarized hereunder in
brief. A detailed write-up of the key findings may be found in Section 9 of this report.
1) Targeting the coal requirements of proposed power plants in the central Tamil Nadu coastal belt is the
primary traffic potential for an alternate greenfield Port
2) Proposals for adding 24,000 MW in the Central TN already exist and this report has conservatively
estimated an addition of only 15,000 MW by the year 2035 which will require about 53 Million Tons of
coal per annum. The report estimates targeting only 50% of this projected volume i.e., a coal
requirement of about 27 Million tons per annum. Further, coal from Cement & Sugar industries add to
this 27 MMTPA and total coal requirement for the region has been estimated at 32 MMTPA by the
year 2035
3) Potential for developing an LNG Terminal of upto 5 MTPA also exists as per Vision 2023s stated
objectives of developing 2 LNG Terminals in TN of 5 ~ 6 MMTPA capacity. Developing an LNG Terminal
in Central TN will help develop down-stream industries, foster growth and lead to the industrialization
of Central Tamil Nadu Region
4) The proposed Petroleum, Chemical and Petrochemical Investment Region (PCPIR) in Cuddalore -
Nagapattinam will generate additional cargoes & require a world-class gateway Port facility. However,
since traffic from the proposed PCPIR cannot be accurately ascertained at this stage, it has not been
quantified in the traffic projections of this report
5) A key and as yet unquantified cargo volumes which could add to the traffic estimates assessed for this
report is domestic coastal cargo movement which is environmentally friendly with a low carbon foot-
print (as compared to road / rail movements) and also has a catalytic effect in fostering industry by
way of reduced cargo movement logistical costs
6) The Ministry of Hydrocarbons has classified the Palar & Cauvery basins on the Tamil Nadu Coast as
Category I basins (i.e having proven commercial viability) and under NELP policy, in the future when
E&P activities for Oil & Gas are commenced, an Offshore Supply (OSV) will be required to service these
fields. For e.g. the OSV base in Kakinada Port services about 1000 Off Shore Supply vessels annually for
the E&P activities in the Krishna-Godavari basin
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7) Railway distance of Mettur Thermal Power station from Kamarajar (erstwhile Ennore) Port is about
392 Kilometers and from V.O. Chidambaranar (erstwhile Tuticorin) Port is about 430 Kilometers
whereas distance to Cuddalore Junction is only 243 kilometers. While coal volumes of Mettur power
plant have not been used for estimating coal traffic for a new facility, the developing a greenfield
facility in the Cuddalore region can lead to a very large logistical cost savings for TANGEDCO while
simultaneously freeing up Ennore Port for handling coal for other Thermal power plants (both private
and government) planned in Northern Tamil Nadu / Southern Andhra & Eastern Karnataka region.
8) The Mayiladuthurai to Villupuram & the Cuddalore to Salem (via Vridhuchalam) railway lines are
presently single track lines with a line capacity utilization of about 82 % only. Possibility of doubling
these lines exists which will increase handling capacity to cater to additional demand for cargoes
generated in the region
9) The East Coast Road (NH45A) has been proposed to be developed into a 6 Lane Highway in its final
stage which will provided adequate road evacuation facility for cargoes
10) Finished Cement, Sugar, Fertilizers & FRM, Container traffic originating from the Central Tamil Nadu
region & proposed PCPIR will contribute a smaller amount of the projected traffic
11) Project cargoes / Over Dimension cargoes generated in the PCPIR and in other engineering companies
located in central TN, Salems iron & steel products cargo as well as other miscellaneous cargoes such
as timber & gypsum may also be attracted to this proposed Port, but these have presently been
excluded in the reports final traffic assessments
12) Tamil Nadu Vision 2023 documents stated objectives are to develop Port projects in the State thereby
adding 150 million tons per annum of cargo handling capacity. This proposed Greenfield facility will go
a long way in realizing the Vision 2023s stated objectives.
PROPOSED SITE FOR DE VELOPING PORT FACILI TY
The Northern & Southern extremities of Tamil Nadu are well serviced by the Chennai, Ennore & Kattupalli Ports
in the North and V.O. Chidambaranar (Tuticorin) Port in the South and this report identifies Silambimangalam
minor port in Cuddalore District located about 25 Kilometers to the South of Cuddalore old town as a potential
Greenfield site for developing a large world-class multi-user Port facility catering to the demands of Central
Tamil Nadu Region.
Silambimangalam minor Port is a notified Port (G.O.Ms.No.183, Highways HN2 Department, dated 23.07.2007)
and under jurisdiction of the Tamil Nadu Maritime Board (TNMB) and also has a Customs Notification for
import and export of cargoes. The site itself is a Greenfield site with adequate back-up area to cater to the
development of such a facility. The railway junction of Puduchatram and NH 45A are located only about 4
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kilometers from the proposed Port site making it an ideal location. Further details on potential suitability of the
site and have been enunciated in the main report.
REPORT CONCLUSION
A case has been presented in this Pre-feasibility report that the Govt. of Tamil Nadu and The State Planning
Commission who have initiated this report, may consider the development of common user world-class
Greenfield Port facility in the central Tamil Nadu coastline which can cater to the cargo volumes likely to be
generated in the Central Tamil Nadu Region.
Bearing in mind the heavy environmental burdens of developing multiple captive Port facilities for the thermal
power plants proposed in the central Tamil Nadu region and the financial implications & attendant
inefficiencies experienced in developing such stand-alone facilities, a State promoted common-user large green
field Port facility which consolidates the coal / dry bulk / liquid bulk / containerized and LNG LPG cargo
requirements is highly recommended since it will be economically viable & an environmentally friendly venture.
Such a Port facility will go a long way in promoting industry & fostering growth in central Tamil Nadu hinterland
and will also help in realizing the Vision 2023 documents key objective of adding a cargo handling capacity of
150 MMTPA to the State.
Summing up, keeping in line with the objectives of the Vision 2023 Document and by providing a facilitative
environment for the Power Sector and associated industries, the Govt. of Tamil Nadu can be the creative
catalyst and ensure the viability for a much needed infrastructure project such as the proposed Greenfield Port
facility in Central Tamil Nadu region to be a commercially viable venture.
***
1. INTRODUCTION
1.1 BACKGROUND
The State Planning Commission (SPC) is a body constituted under the Chairmanship of the Honble Chief Minister
of Tamil Nadu on 25th May 1971.
The State Planning Commission which is an Advisory Body constituted with making recommendations to the
Government on various matters pertaining to the development of the State, has decided to conduct a study
entitled Pre-Feasibility study on Development of a Large Multi user Non Major port in Tamil Nadu.
The Madras Chamber of Commerce and Industry (MCCI), a non-governmental, industry-led and industry-
managed organization established in the year 1836 and whose main purpose is to influence government policy
on economy, trade, commerce and industry has been delegated to conduct the above Study.
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The MCCI have in turn appointed Kalyani Maritime Pvt. Ltd, a Shipping Services & Consultancy firm based in
Chennai to prepare the preliminary feasibility study report for the stated objectives and rationale as envisaged
by the Tamil Nadu State Planning Commission.
1.2 RATIONALE FOR THE PROJECT

Ports play a vital role in Indias overall economic development. By volume, 90% of the countrys international
trade relies on maritime transport (70% by value). Indias port network comprises 13 major and 187 non-major
ports.
Figure 1-1: Tamil Nadu State Economic Indicators (Source: TNIDB & TIIC)
The total cargo traffic volumes handled at the Ports in India from the year 2001 until the year 2013 has been
presented in the table below.
No table of (in Million Tonnes) % share of % share of Non-

figures Major Ports Major Ports
Major Ports Non Major Ports Total
entries
found.
2001-2002 287.58 96.27 383.85 74.92 25.08
2002-2003 313.55 105.17 418.72 74.88 25.12
2003-2004 344.79 120.84 465.63 74.05 25.95
2004-2005 383.75 137.83 521.58 73.57 26.43
2005-2006 423.56 145.53 569.09 74.43 25.57
2006-2007 463.78 186.12 649.9 71.36 28.64
2007-2008 519.31 203.62 722.93 71.83 28.17
2008-2009 530.53 213.20 743.73 71.33 28.67
2009-2010 561.09 288.86 849.95 66.01 33.99
2010-2011 570.03 314.85 884.88 64.42 35.58
2011-2012 560.13 353.02 913.15 61.34 38.66
2012-2013 545.79 387.87 933.66 58.45 41.54
Table 1.1 Tamil Nadu State Economic Indicators (Source: TNIDB & TIIC)
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The total traffic volumes of non-major ports continued their upward trajectory with 41.63% share in traffic
handled at Indian ports in 2012-13, which was 25.08% in 2001-02.
As per the Ministry of Shippings vision document Maritime Agenda 2020; the overall port capacity in India is
expected to grow at a CAGR of about 18.34% from 963 million tonnes in FY11 to 3,130 million tons in FY20. The
capacity at non-major ports is projected to expand at a faster CAGR of about 20.73% and is expected to
increase from 370 million tonnes in the FY 2011-12 to 1,670 million tonnes by 2020. As compared to this, the
estimated capacity at major ports is expected to grow at a CAGR of 9.8% during this period, from 690 million
tonnes to 1,460 million tonnes. The share of non-major ports in port capacity is anticipated to increase from
41.2% in FY11 to 53.3% by 2020.
With increasing globalization, sea ports have emerged as the backbone of global trade, however, the pace of
development of port infrastructure, Tamil Nadu has not been in par with the growing trade, volumes, placing
pressure on the available port infrastructure and transport links both inside and outside the ports. Despite the
presence of three major ports and several non-major ports, there is underutilization of capacities and gaps that
need to be addressed on an urgent basis.
TAMIL NADU VISION 20 23

Vision Tamil Nadu 2023, published by the Honorable Chief Minister of Tamilnadu on 22nd March 2012 is the
Strategic Plan for Infrastructure Development in Tamil Nadu.
Vision 2023 targets a growth rate of 11 per cent (GDP) for the next 11 years and envisages a few large
infrastructure projects which would create huge positive externalities and open up possibilities of rapid growth
for the economy. Most of these projects call for significant capital expenditure and an active role of the State
government in facilitation. One of the stated objective of the vision document is the development of three
Greenfield ports and 5 minor ports with a combined total cargo handling capacity of 150 million tonnes per
annum.
With this background, The State Planning Commission has initiated this preliminary feasibility Study project
with a view from the demand perspective to assess the Pre-Feasibility of developing a large Multi-user
Greenfield port facility in Tamil Nadu. The proposed facility will be developed by the State Government and its
administration would be under the purview of the State.
1.3 FEASIBILITY REPORT OBJECTIVES AND OUTLINE
One of the most important tasks in any preliminary feasibility study is to analyze whether the
suggested project is justified from an economic viewpoint and whether it can be implemented at a
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reasonable cost without compromising and technical requirements. The study will therefore be
developed such that the Economic & Financial aspects are evaluated in the report.
The objectives of the Preliminary feasibility study are:

To examine the current maritime infrastructure in Tamilnadu.
To identify and analyses the broad industrial and trade potential of hinterland.
To review of development plans in the hinterland including plans of Go TN.
To ascertain the preliminary feasibility of developing a Large Multi user Non Major port in
Tamilnadu and suggest suitable location and approximate project cost.
The tasks would include the following:

Analyze the existing and projected port infrastructure and the capacity and competitiveness
of existing major and minor ports in the State.
Study the trade potential vis--vis the existing infrastructures and the need for a large non
major, multi user port.
Compare with the other best models in India and abroad
Identify and recommend suitable location(s) for setting up such a port in the state and
highlight the challenges and opportunities.
Indicate an approximate project cost with broad details.
Provide observations and recommendations about the feasibility and the required action
plans.
2. TAMIL NADU STATE PROFILE
2.1 TAMIL NADU ECONOMY - AN OVERVIEW
SELECTED ECONOMIC IN DICATORS

Tamil Nadu is the 11th largest and the seventh most populous state in India, and second most
economically important state in Southern India. Bordered by the Bay of Bengal on its east, it has the
second largest coastline in India with a length of 1,076 km and is an important center for sea trade
and has a national highway of 2,002 km in length. Along with a vibrant manufacturing sector, the
state leads the country in IT and is the second largest software exporter.
ECONOMIC GROWTH TRENDS

Tamil Nadu is one of the most developed states in India. Its value of economic activity, the GSDP, stands at INR
4.28 lakh crore, making it the second largest state economy after Maharashtra. Tamil Nadu is characterized as a
state with high per capita income and an increasing standard of living. It is an important hub for manufacturing
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industries, especially automotive, textiles and software. Tamil Nadu, at 15.1 percent, accounts for the largest
number of Micro, Small and Medium Enterprises (MSMEs). A slew of incentives from the Government with
respect to investment and good infrastructure have helped the industrial and the ICT services sector. Tamil
Nadu is a state with financial soundness; INR 536.54 crore of revenue surplus was recorded for 2011-12 and
INR 2,376.07 crore of revenue surplus is likely to be recorded during 2012-13.
Table 2-1: Tamil Nadu State Economic Indicators (Source: TNIDB & TIIC)
Indicator Unit Tamil Nadu India

GSDP contribution to GDP (2012-2013) % 7.6 100
Average Growth rate (2013) % 4.61 7.4
Per Capita Income at current prices (2012-13) INR 98,550 68,748
Literacy Rate (2013) % 83% 74.04
Installed Power Capacity (2013) MW 18,382.00 186654.6
National Highway Length (2013) KM 4462 70934
Airports (2014) Number 16 229
Ports (2014) Number 20 187
Figure 2-1: GSDP: Gross State Domestic Product, GDP: Gross Domestic Product.
At current prices, the Net State Domestic Product (NSDP) of Tamil Nadu was about US$ 118.8 billion
in 2012-13.
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Figure 2-2: Tamil Nadu NSDP values
An industrialized state, Tamil Nadu has shown consistent performance over the last decade. It has grown at an
average annual growth rate of 7.6 percent 2012-13. Tamil Nadus growth rate has been above that of Indias
averaged growth rate. It has grown at a faster rate than the other industrialized states of India such as Gujarat,
Andhra Pradesh and Maharashtra. An investor friendly state with the government formulating policies for the
development of the various industries such as the IT, automotive industries etc., Tamil Nadu will continue to
remain in the top rung of the country in the next decade.
Comparison of Growth Rates, State wise, 2012-2013
State Growth Rate (%)
Bihar 13.1
Delhi 11.3
Chhattisgarh 10.8
Tamil Nadu 9.4
Maharashtra 8.1
Gujarat 9.1
Andhra Pradesh 6.8
Table 2-2: Comparison of Growth Rates, State wise, 2012-2013
Source: Ministry of Statistics, TN State Agency Websites and Kalyani Maritime analysis
Year Tamil Nadu (INR ) India (INR )
2004 -05 30,062 24,143
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2005 -06 35,243 27,123
2006 -07 42,288 31,198
2007 -08 47,606 35,820
2008 -09 54,140 40,605
2009 -10 63,547 46,492
2010 -11 72,993 54,835
2011 -12 84,058 60,972
2012 - 13 94,720 65,999
Table 2-3: Per Capita Income, Tamil Nadu and India, 2004-05-2010-11
The per capita income of Tamil Nadu has shown a steady growth and has been consistently been greater than
the national per capita income on account of higher growth rates of the economy. A robust, well performing
and steadily growing economy has resulted in Tamil Nadu performing better than Indias average performance.
Per capita income growth in 2010 - 11 and 2011 - 12, at 11.2 and 8.7 percent respectively, has been the fifth
highest in the country and highest among the more industrialized states.
SECTORIAL CONTRIBUTIO N TO GSDP

Tamil Nadu is mainly driven by the services sector. The agriculture sector has been decreasing in importance
while the manufacturing industry has retained its position. This has resulted in the services sector gradually
taking center stage. With incentives such as industrial parks and tax exemptions being offered as per Vision
2023 and policies introduced, the manufacturing industry is expected to contribute to a greater extent to the
GSDP in the next decade. One of the targets of the Vision 2023 is to increase the contribution of the
manufacturing sector from the present 17.0 percent to 23.0 percent by 2023.
The industrial component in the GSDP is mainly driven by manufacturing with mining and quarrying
and electricity, gas and water supply contributing in small quantities. Automotive and textiles
industries are the most important under manufacturing. Tamil Nadu has the largest automotive
production capacity in the country and major automotive companies are located here.
Trade, hotels and restaurants are the biggest contributors to the services sector. Financial services have
mushroomed and penetrated well. With infrastructure receiving a boost from the Government, the
construction industry holds itself strongly along with the communications industry. Components of the Services
Sector, Tamil Nadu, 2010 11.
Figure 2-3: Tamil Nadu NSDP values
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TAMIL NADU VISION 20 23

Vision 2023 Tamil Nadu unveiled by the Honorable Chief Minister on 22 March 2012. The Vision 2023 Tamil
Nadu document which lays out the road map of development for the State, aims to achieve a consistent
economic growth rate of 11% per annum in a highly inclusive manner and to identify and remove the
bottlenecks in development, prioritise critical infrastructure projects, and work to propel the State of Tamil
Nadu to the forefront of development. The Vision 2023 identifies ten themes for the state as follows:
1) Tamil Nadu will be amongst Indias most economically prosperous states by 2023, achieving a six-fold
growth in per capita income (in real terms) over the next 11 years to be on par with the Upper Middle
Income countries globally.
2) Tamil Nadu will exhibit a highly inclusive growth pattern it will largely be a poverty free state with
opportunities for gainful and productive employment for all those who seek it, and will provide care
for the disadvantaged, vulnerable and the destitute in the state.
3) Tamil Nadu will be Indias leading state in social development and will have the highest Human
Development Index (HDI) amongst all Indian states.
4) Tamil Nadu will provide the best infrastructure services in India in terms of universal access to
Housing, Water & Sanitation, Energy, Transportation, Irrigation, Connectivity, Healthcare, and
Education.
5) Tamil Nadu will be one of the top three preferred investment destinations in Asia and the most
preferred in India with a reputation for efficiency and competitiveness.
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6) Tamil Nadu will be known as the innovation hub and knowledge capital of India, on the strength of
world class institutions in various fields and the best human talent.
7) Tamil Nadu will ensure Peace, Security and Prosperity for all citizens and business, enabling free
movement and exchange of ideas, people and trade with other Indian states and rest of the world.
8) Tamil Nadu will preserve and care for its ecology and heritage.
9) Tamil Nadu will actively address the causes of vulnerability of the state and its people due to
uncertainties arising from natural causes, economic downturns, and other man-made reasons and
mitigate the adverse effects.
10) Tamil Nadu will nurture a culture of responsive and transparent Governance that ensures progress,
security, and equal opportunity to all stakeholders.
TAMIL NADU INDUSTRIA L POLICY 2014

In the post-liberalisation era, Tamil Nadu introduced Industrial Polices in 1992, 2003 and 2007. As detailed in
the earlier section, The Vision 2023 Tamil Nadu document envisages a 14% annual growth in the manufacturing
sector and an investment of Rs. 15 lakh crore in the next 10 years. In order to attain the growth targets fixed for
the respective economic indicators, the formulation of a New Industrial Policy became imperative and the
Govt. Of Tamil Nadu has been unveiled the Industrial Policy 2014 in February 2014 which is aimed at
strengthening the state as a manufacturing hub and attracting incremental investments of over 10 per cent
every year in the sector.
The policy, which is focused on infrastructure, skill and industrial development in the southern parts, is also
looking at doubling exports by 2016 and creating employment opportunities for another two million before the
year.
The stated objectives of the new Industrial Policy in 2014 are:
1) To position Tamil Nadu as the most preferred State for manufacturing, with a reputation for efficiency
and competitiveness and to attract incremental investments of over 10% every year in Manufacturing.
2) To achieve an annual average growth rate of 14% in the manufacturing sector in Tamil Nadu.
3) To raise the investment in infrastructure from the existing 45% of the GSDP gradually to 10% by 2015
and further to 11.5% from 2019 as envisaged in the Vision 2023 Tamil Nadu document.
4) To make Tamil Nadu the innovation hub and the knowledge capital of India, on the strength of world
class institutions in various fields and the best human talent
5) To enhance Tamil Nadus position in high technology industries including aerospace, nano technology
etc.,
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6) To achieve rapid industrialisation of the Southern districts of Tamil Nadu
7) To achieve inclusive and sustainable industrial development in Tamil Nadu
8) To create gainful employment opportunities for an additional 2.0 million persons before 2016
9) To double exports from Tamil Nadu by 2016.
The policy lists out a host of initiatives to be followed by the Government in achieving the goals of Vision 2023
and in particular, with reference to developing the minor Ports in Tamil Nadu, The industrial Policy lists out the
following:
Minor Port Development on PPP mode: 13 of the 23 minor ports in the State have been offered to the
Private sector for establishment of captive facilities.
The Government will facilitate up-gradation of the minor ports at Nagapattinam, Colachel, Cuddalore
and Manappad into all-weather deep sea ports and the other ports as Intermediate ports.
Port connectivity: The Government in collaboration with the National Highways Authority of India
(NHAI) and the Government of India will improve the connectivity to the Chennai and Ennore Ports
(recently name changed as Kamarajar Port). The Government will speed up the implementation of the
Chennai Outer Ring Road Project (Phase II) and the Northern Port Connectivity Road, providing a direct
access to the Kamarajar and Kattupalli ports from the National Highways No. 5.
Multi-level car parking facility: The Government will facilitate construction of Multi-Level Car Parking
Terminals in all the seaports.
Container handling facilities in Kamarajar and Chennai ports: The Government will take up with
Government of India to expedite establishment of the Container Terminal in Kamarajar Port and the
Mega Container Terminal in Chennai Port.
Third Port for Chennai: Currently, M/s Larson & Toubro (L&T) in collaboration with TIDCO has
established Indias largest ship building facility along with a Port in Kattupalli, Ponneri taluk, north of
Chennai. This Port also has container handling facilities apart from other berths and marine
infrastructure including ship lifting required for ship building.
LNG Terminal and Gas Grid: The Tamil Nadu Industrial Development Corporation (TIDCO) has signed
an agreement with Indian Oil Corporation Limited (IOCL) to establish a Liquefied Natural Gas (LNG)
Terminal at Kamarajar Port, near Chennai through a joint venture. The vaporised LNG will be supplied
to Power Plants, Petroleum Refineries, Fertilizer Plants and other user industries, Transportation and
Domestic sectors. This TIDCO/IOCL Joint Venture will also construct Gas pipeline infrastructure to carry
about 20 million cubic metres of vaporised LNG to various demand centres in the State.
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3. INDIAN PORT SCENARIO: AN OVERVIEW
Seaports play a crucial role in facilitating trade & economic development and serve as an indispensable link
between a country and the world. Seaports are the gateway to a country and are the critical junctions between
various modes of transport. About 95% of Indias trade by volume and 70% by value is transported by sea.
India is strategically located along the worlds shipping routes has a generous coastline of 7,517 km
with 13 major ports and around 187 non-major Ports of which only about 47 are operational. The
division in the Indian port sector into the two categories major ports and non-major ports (also
referred to as minor & intermediate ports) is based on the legal distinctions made under the two
key Acts that govern the Indian port sector i.e. Indian Ports Act 1908 and Major Ports Act 1963.
Major ports are listed under serial no. 27 of the Union list of the Constitution and administered under
the Major Port Trusts Act, 1963. All ports other than major ports are placed in serial no. 31 of the
Concurrent List of the Constitution and are administered jointly by Central and State governments
under the Indian Ports Act, 1908. Under this arrangement, the Central government continues to have
the powers under certain other centrally administered laws (e.g. Environment Protection Act, 1986)
with respect to sanctioning development of State ports or any other marine construction, along the
coastline of a State. Also, the distinctions between major and non-major ports has other
implications in terms of the distribution of maritime jurisdiction between the Central and State
governments and sharing of revenue earnings from the port sector between the Central and State
governments.
All the major Ports are administered by Port Trusts which are autonomous bodies except for
Kamarajar Port (Tamil Nadu) which is run by the Kamarajar Port Limited company registered under
The Companies Act, 1956
All the non-major ports are run by the private sector though Joint Ventures and collaborations with
the respective State governments.
A pictorial depiction of all Indian Ports is provided in the map below.
Page | 16
Figure 3-1: Major & Non-Major Ports in India
3.1 TRAFFIC HANDLED
Figure 3.2 Indian ports: Growth in cargo handled, 2006-07 to 2012-13, Million tonnes
Page | 17
In 2012-13, all Indian ports handled a cargo of around 933 million tonnes of which, the total traffic
volumes handled at non-major ports was 387.87 Million. While the major ports handled around
58.4% of the traffic, non-major ports accounted for the rest 41.6 %, a continued their upward
trajectory as the traffic at non-major ports was only about 25% in 2001-02. Cargo traffic handled at
Major Ports alone grew slightly from the 545.8 million tons handled in 2012 2013 to 555.5 Million
tons in 2013 2014. As of this writing, the statists for cargoes handled at Non-major Ports in 2013
2014 is unavailable however, going by the past trends, Major ports are expected to face increased
level of competition from the non-major ports in the years to come owing to the number of
Greenfield ports planned with large and investment from the private sector.
Traffic of ports in India is largely carried through roadways followed by railways and pipelines.
Coastal shipping largely remains underdeveloped and underutilized. While ideally railways should
account the major share, only around 24% of the port traffic is transported through railways in India.
4. TAMIL NADU PORTS PROFILE & POLICY FRAMEWORK

Tamil Nadu has the second longest coastline (1076 Kilometers) with 3 major ports and about 22 non-
major ports. Of the 3 major ports, 2 major Ports, Chennai & Kamarajar are located at the Northern
extremity of the state and the 3rd major Port, V.O. Chidambaranar (formally Tuticorin) Port is located
at the Southern extremity of the State. This apart, the State has declared about 20 non-major Ports
which are administered and controlled by the erstwhile Tamil Nadu Port Department which was
converted into Tamil Nadu Maritime Board under the Tamil Nadu Maritime Board Act, 1995 (Tamil
Nadu Act 4/96) with effect from 18.03.1997. The following image details the list of Ports on the Tamil
Nadu Coast.
Of all the declared non-major Ports, a few Ports are under the direct control of the Tamil Nadu Maritime Port
and a few of the Port development concessions have been accorded to private entrepreneurs who intend
developing a Port based captive industries.
However, while the licenses have been accorded to various concessionaires, of all the non-major
Ports in the State, the only non-major Port which has been commissioned till date is the Kattupalli
Port developed in a JV between L&T shipbuilding and Tamil Nadu Industrial Development
Corporation (TIDCO). The Kattupalli Port was commissioned in 2012 and is primarily a Ship Yard &
Ship Repair facility which, in order to make the project viable, was also allowed to handle commercial
cargoes (restricted to Container handling) at the Port. The Port currently has 2 berths for handling
containerized ships and a 3rd berth is likely to be developed in the future. As of now, the Port is only
allowed to handle containerized cargoes.
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Figure 4-1: Tamil Nadu Maritime Board Ports map
So there are 3 ports adjacent to one another in the northern Tamil Nadu Region i.e. Chennai & Kamarajar major
Ports & Kattupalli non-major Port. Further, in Southern Andhra in Nellore District there is the Krishnapatnam
Port which also handles multi-commercial cargoes.
From this region, moving South along the coast, there is the Cuddalore minor Port, which is administered by
the State Government, however, The Cuddalore Port is a transshipment Port where cargo can be offloaded at
Page | 19
the Anchorage only about 6 months a year and barged to the Port. Barges of maximum 1.5 meters draft can
rd
navigate their way into the Port. The 3 major Port is the V.O. Chidambaranar Port (formally Tuticorin Port) at
the southern region of Tamil Nadu. This therefore leaves a central & interior Tamil Nadu Districts which are not
able to access a sea port.
4.1 TAMIL NADU MINOR POR TS POLICY
Tamil Nadu Maritime Board (TNMB) is the nodal agency to coordinate and implement the port
development policy of the Government of Tamil Nadu. TNMB would have the responsibility of both
regulatory and development functions in the maritime sector in the state. Further, it is envisaged
that while TNMB would be the nodal agency, several other institutions like TIDCO, SIPCOT etc. would
be closely associated with TNMB in its endeavor to develop ports in the state.
MINOR PORT POLICY 2007
The Main Objectives of the Tamil Nadu Minor Port Policy are:
To increase the share of Tamil Nadu State in the Export and Import sector, in National and
International Trade and Commerce, in the post-liberalisation and globalization era;
To decongest the major ports at Ennore, Chennai and Tuticorin in order to improve their
productivity;
To cater to the needs of increasing traffic of Southern States by providing efficient facilities
and services and to support the countrys domestic and international trade;
To create sufficient infrastructure facilities to handle 25% of Indias total cargo in Tamil Nadu
Maritime waters;
To provide port facilities to promote export oriented industries and port based industries
along the coastal districts of Tamil Nadu;
To promote port based thermal power plants by providing exclusive port facilities to import
different kinds of fuels.
To decongest highways by providing facilities for coastal shipping of passengers and cargo
traffic along the East Coast of nearly 1000 Kms;
To promote tourism by providing facilities for leisure and water sports activities along the
coast line;
Page | 20
To provide facilities to encourage ship building, repairing, breaking and manufacture of

cranes and floating crafts; and
To facilitate optimum utilization of the port infrastructure developed in the State.
CAPTIVE PORTS DEVELOPMENT POLICY OVERVIEW
Captive port handling only the captive cargo will be permitted on BOO (Build, Own, Operate)
Captive ports handling multi user-specific and multi-commercial cargo would be permitted
on BOOS (Build, Own, Operate and Share)
Captive port that handles multi-user specific and multi-commercial cargo but ceases to
handle the captive cargo after sometime, the operation of the port will be on the principles
of BOOST (Build, Own, Operate, Share and Transfer) for the remaining period within the
maximum period of 30 years
The entire construction of the captive port and the port facilities will be on BOO basis in
which the dues on captive cargo would be fixed by the Government from time to time
The construction, repair, maintenance and management of the facilities will be the sole
responsibility of the developer
COMMERCIAL PORTS DEVELOPMENT POLICY OVERVIEW
Bids would be initially invited for the selection of suitable promoters on a competitive basis
and would be selected as per technical and financial evaluation
In cases where suitable offers are not forthcoming, such ports would be awarded directly to
companies entering into JVs with Government Agencies including public sector undertakings
of Government of Tamil Nadu
The entire project will be on the principle of BOOST for an initial period of 30 years
BOOST period of more than 30 years would be possible for projects which are part of
SEZs/Petroleum, Chemicals and Petro-chemicals Investment Regions (PCPIRs)
TNMB will have the option of either collecting the dues as per the schedule of rates or
receive share of the revenue under BOOST whichever is beneficial to TNMB
Mode of transfer of assets at the end of the agreement period will be detailed in the
respective concession agreement
Page | 21
Apart from handling cargo, the private player can construct and provide facilities for passenger water
transport and water sports activities for which TNMB shall have the right to fix tariff and recover
dues as approved by the Government.
5. TAMIL NADU INDUSTRIAL REGIONS
The Tamil Nadu State has a total of 31 districts with the key industrial districts located in the central & interior
Tamil Nadu Region.
Figure 5-1: Districts and Key Industries in the District
In the Google map below, a representation of the distance of the interior region to the closest major Port has
also been shown which in excess of 300 kilometers is.
Page | 22
Figure 5-2: Tentative Distance Indicator of interior TN region to the major ports of Chennai & Tuticorin
As can be seen from the images above that the Central Tamil Nadu Region is located over 300 kilometers away
from any major Port. The road-ways connecting these regions to the major Ports are not conducive to handling
heavy load cargo. The major cargo centers for central TN are detailed in table below.
Table 5-1: Major industries in Tamil Nadu as per District-wise 2010-11
Cargo centre Industry

Puducherry Chemical ,food products, metal ,leather, printing ,auto components
Nagapattinam Power Plant, Agro Industries
Thiruvallur Textile, Engineering ,Food Industry
Pudukottai Cashew, Agro Products
Karur Paper, Textile
Namakkal Truck body building
Perambalur Cement
Ariyalur Cement, Sugar
Thanjavur Agro Industries, sugar, Palm Oil
Trichy Steel, engineering, Textile, Cement
Cuddalore Power Plants
Viluppuram Sugar, Rice
Salem Steel, Mineral Industries, Dairy
Erode Sugar, Leather, Textile
Tirupur Textile
In this study, a detailed examination of potential cargo traffic originating / culminating within the various
industries in Tamil Nadu Districts located in the land-locked and coastal districts of Tamil Nadu which are not
easily accessible from the Chennai / Kamarajar Ports located in the northern part of Tamil Nadu and the V.O.C.
Page | 23
Chidambaranar Port (formally Tuticorin Port) located in the southern part of Tamil Nadu as shown in image
below.
Figure 5-3: Study Area Boundary
Meetings with the key industries & sectors located in the interior and land-locked regions which are situated
more than 150 kilometers form the existing major Ports in Tamil Nadu were arranged to ascertain the cargo
movement logistics & volumes, both present and future to assess the total traffic potential for an alternate
Greenfield facility at the Port.
5.1 REVIEW OF GOVT. OF INDIA STATISTICS & PREVIOUS REPORTS ON THE SUBJECT
Page | 24
A Detailed review of all previous studies undertaken by the various agencies and other consultants,
government report etc. will be undertaken by Kalyani Maritime to assess the comments and projections of
other stake holders.
6. TRAFFIC GROWTH POTENTIAL ASSESSMENTS
6.1 TRAFFIC GROWTH PROJECTIONS AS PER GOVT. OF INDIA STATISTICS
As per the 12th five year plan (2012-17) of the Ministry of Shipping and the Maritime Agenda 2010-
20, the traffic of all the Major Ports are expected to reach to the level of 1031.518 million tonnes by
end of 12 th Five Year Plan (i.e. in 2016-17) and 1214.820 million tonnes in 2019-20. Similarly, the
traffic at all non-major Ports is expected to increase to about 987.81 million tonnes by the end of
12th Five Year Plan in 2016-17 and 1280.13 million tonnes by 2019-20.
Subsequently, the plan estimates that capacity of Indian ports will have to nearly triple to around
2,592.12 million tonnes by the end of the plan period i.e., 2016-2017 to be able to handle the
projected traffic growth of 2,494.95 million tonnes by 2019-20. Traffic is forecast to reach 1,214.82
million tonnes by 2019-20 in the major ports and 1,280.13 million tonnes in the non-major ports and
the corresponding capacities are forecast to reach 1,459.53 million tonnes and 1,670.51 million
tonnes respectively. Non-major ports are forecast to handle over 50% of the traffic by 2019-20.
The Ministry of Shipping has planned to invest INR 58,830 Crores during the 12th Five year plan for
the development of the major ports and another INR 20,015 Crores during 2017-08 to 2019-20.
Investments are expected in Greenfield projects as well as expansion of existing facilities. Private
sector is expected to invest around 66%. Maritime states have estimated an investment of INR
95,883 Crores during the 12th five year plan period for creating additional capacities and the private
sector is envisaged to fund around 98% through PPP or BOT or BOOT basis and the remaining 2% by
the State governments.
Table 6-1: Indian Ports: Traffic and capacity projections to 2019-20
Traffic projected Capacity projected Proposed Investments

(Million tonnes) (Million tonnes) (Rs. Crores)
th th
Actual End of 12 End of Actual End of End of During 12 2017-18 to
th
2012-13 Plan 2019-20 2012-13 12 Plan 2019-20 Plan 2019-20
Page | 25
(2016-17) (2016-17)
Total major
545.79 1031.50 1,214.82 1226.00 1,328.26 1,459.53 58,830.2 20,015.3
ports
Total minor
387.87 987.81 1,280.13 1670.00 1,263.86 1,670.51 95,883.8 38,675.8
ports
Total India 933.66 2019.31 2,494.95 2896.00 2,592.12 3,130.04 1,54,714.1 58,631.1
Source: Indian Ports Association Maritime Agenda 2010-20 12th Five Year Plan- Ministry of Shipping
In view of the expected growth in the Indian economy and the fact that Tamil Nadu is one of the
forerunners in the industrial and economic development in India, the growth of EXIM trade from
Tamil Nadu may be expected to be significant in the next decade. According to the Maritime Agenda
2010-2020 prepared by the Union Ministry of Shipping, the EXIM trade from Tamil Nadu is expected
to witness a growth of 11.7% per annum as envisaged by the Vision 2023 document & the Tamil
Nadu Industrial Policy of 2014.
As there is considered to be a high degree of correlation between economic growth of the state,
EXIM trade and the cargo throughput of ports, the State Government is taking several initiatives to
promote industrial growth in the State including setting up Special Economic Zones, industrial parks.
Owing to the various initiatives of the State Government the EXIM trade of the State is expected to
grow. While the traffic in the major ports is expected to grow at around 10% per annum, non-major
ports are set to witness around 40% growth in traffic during 2009-10 to 2019-20. Kamarajar is
expected to witness increased traffic growth among major ports at 14.7% per annum during the
period followed by Tuticorin at 10.4% and Chennai at 6.9% per annum. Tamil Nadu is expected to
maintain its share in the total volume of traffic in India at around 11% over the coming decade.
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Source: Maritime Agenda 2011 *Based on the assumption that the GSDP of the State will grow at 10%
Figure 6-1: Tamil Nadu EXIM trade: Traffic growth projections, 2012-13 to 2019-20, Million tonnes
Year 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Chennai port 67.62 67.7 69.99 75.22 82.66 90.73 98.9 107.72
Kamarajar port 31 33 41.39 54.39 67.44 71.44 71.44 71.54
Non - major ports 5.4 24.2 29.7 33 35.2 38.3 40.8 45.4
V.O. C. Port 34.09 39.91 44.62 49.75 50.6 55.37 57.09 58.94
Total (Million
138.11 164.81 185.7 212.36 235.9 255.84 268.23 283.6
Metric Tons)
By 2019-20, coal is expected to account for around 33% of the total traffic handled by the ports in
Tamil Nadu, followed by containerized cargo at around 29%. Owing to the capacity expansion plans
of non-major ports from the present 3.10 million tonnes in 2011-12 to 45.40 million tonnes by 2019-
20 and the plans to set up more non-major ports, these ports are expected to account for a larger
share of the pie in the years to come. However at present the minor ports in Tamil Nadu are growing
relatively slower than the non-major ports in some of the other States. Some of the minor ports in
India that are witnessing faster growth and significance include Mundra and Pipavav ports in Gujarat
and Krishnapatnam port in Andhra Pradesh.
Page | 27
Table 6-2: Commodity wise traffic projections by 2019-20, Million tonnes
COMMODITY POTENTIAL TRAFFIC
POL 39.6
Iron Ore 13.8
Coal 93.9
Fertilizers & FRM 5.9
Tonnes 83.1
Containers
TEUs 6.7
Others 47.3
Total (Million Metric Tons) 283.6
Source: Maritime Agenda 2010-20
6.2 TAMIL NADU CENTRAL HINTERLAND INDUSTRIES & CARGO POTENTIAL
6.2.1 KARUR
Karur district has agricultural and mineral resources that provide a base for paper, cement, textile
and sugar industries (Table below). In addition, the district has a considerable number of bus-body
manufacturing units.
Karur has many handloom manufacturing units engaged in the manufacture of kitchen, bathroom
and bedroom furnishing items for export. The exported handloom made-ups include bedspreads,
towels, floor rugs, tea towels, napkins, aprons, kitchen towels, pot holders plate mats, bath mats,
tea mats, curtains, pillow, quill covers, shower curtains, etc. The handloom industry in Karur
generates an annual turnover of Rs.2000 crore through direct and indirect exports of textile goods.
This major export trade has led to the growth of allied industries like handloom and power loom
weaving units, dyeing and bleaching units, tailoring and packaging units.
Karur has an industrial estate developed by SIPCOT, located in Alathur Village of Karur Taluka. A list of
the major companies in Karur has been collated and presented in table below.
Page | 28
Company Area Production (Capacity)

Newsprint and paper. TNPL, the countrys largest non-wood
Tamil Nadu
based paper mill engaged in the manufacture of newsprint from
Newsprint and Karur
bagasse is located in Karur. TNPL produces 230,000 tpa of printing
Papers Limited
& writing paper and consumes 1 Mt of bagasse every year.
Chettinad
Cement Puliyur Cement (1.7 Mtpa)
Corporation
Sugar, processing capacity of 4,000 t of sugar cane crushing per
EID Parry Pugalur
day (TCD).
Table 6-3: Major companies in Karur
6.2.2 NAMAKKAL
The main manufacturing sectors in Namakkal district comprise textiles, poultry, truck building, starch and allied
activities. Mining is also important with limestone, bauxite and magnesite as the main minerals. The major
cargoes with export potential from this district are cotton fabrics, towels, bed spreads, rigs, eggs and raw
granite. A list of the major companies in Namakkal has been collated and presented in table below.

Sesayee Paper Boards Pallipalayam Paper (115,000 tpa)
Salem Co-operative Sugar Mill Mohanur Sugar (2,500 tpa)
Thiruvalluvar Textiles Private
Limited, Unit-II Rasipuram Cotton yarn
Sri Sampoorana Lakshmi Spinning
Mills Tiruchengode. Cotton yarn
Arunachala Gounder Textiles
Mills Pallipalayam Cotton yarn
Chola Spinners Pallipalayam Cotton yarn
Ponni Sugar (Proposed) Paramathy Sugar distillery
Table 6-4: Major companies in Namakkal
6.2.3 TIRUPUR
Tirupur district in central Tamil Nadu is formed by merging talukas of Coimbatore district and Erode district.
Tirupur is famous for its textile market. Units for knitting, dyeing & bleaching, fabric printing, are predominantly
found present in Tirupur. Textile is exported to US and EU from Tirupur through the ports in Tamil Nadu. A list
of the major companies in Tirupur have been collated and presented in table below.
Name of the company Area Production
Page | 29
ATL Textiles Ltd Tirupur Textile

Usha Textiles P Ltd Tirupur Textile
Tirupur Textiles Ltd Annupurpalayam Textile
Tirupur Cotton Spinning & Weaving Mills Ltd Gandhinagar Textile
Sri Veeraswara Spinning Mills P Ltd Anupparpalayam Textile
Sri Ramalinga Choodambigai Mills Ltd Tirupur Textile
The Dhanalakshmi Mills Ltd Arulpuram Textile
Table 6-5: Major companies in Thirupur
6.2.4 PERAMBALUR
Perambalur is a centrally located district with limestone, gypsum and fireclay reserves that have
facilitated the development of cement plants in the region. Sugar cane cultivation supports a
number of sugar mills.
GVK Group and TIDCO plan a multi-product SEZ at Perambalur to be operational in 2013 and to
accommodate units engaged in:
Electronic and computer hardware

Automobile and auto ancillaries
Electrical equipment
Biotechnology
IT and IT-enabled services
Textiles
Pharmaceuticals
Gems and Jewelry
Leather
Agro and food processing
Tanning
Chemicals
General engineering goods and industrial machinery

A list of the major companies in Perambalur have been collated and presented in table below.

Eraiyur Sugar Factory Eraiyur Sugar (19,000 tpa)
Page | 30
J.P.R. Cement Factory Melamathur Cement

Dhanalakshmi Srinivisan Sugar Mill Veppanthattai Taluk Sugar (12,000 tpa)
MRF Naranamangalam Radial tyres
Table 6-6: Major companies in Perambalur
6.2.5 ARIYALUR
As Ariyalur district is rich in limestone resources it is a manufacturing base for many of the major Indian cement
companies. There is also a sugar mill located in Sathamangalam village. A list of the major companies in Ariyalur
have been collated and presented in table below.

Birla (Grasim Industries) Reddipalayam Cement (1.40 Mtpa)
India Cements Tirunelveli Cement (2.16 Mtpa)
Dalmia Cements Thamaraikulam Cement (6.50 Mtpa)
Madras Cements Ariyalur Cement (5.12 Mtpa)
Ramco Cements Ariyalur Cement (2 Mtpa)
Sakthi Cements Ariyalur Cement
TANCEM Ariyalur Cement (0.5 Mtpa)
Kothari Sugars and Chemicals Limited Sathamangalam Sugar (6,400 tcd)
Table 6-7: Major companies in Ariyalur
6.2.6 THIRUCHIRAPALLI
Agriculture constitutes the principal activity in Thiruchirapalli district (Trichy), whilst public sector
companies like BHEL, Heavy Alloy Penetrating Plant, Ordnance Factory and Railway Workshops
dominate the engineering industry. Several agro-based or agro-dependent companies and light and
heavy engineering manufacturing units co-exist in the district which lead the country in fabricating
windmill towers. Major commodities with export potential are windmill towers, precision machine
components, readymade garments, food products, boiler components and accessories.
A list of the major companies in Thiruchirapalli have been collated and presented in table below.
Company Area Production
Page | 31
Tiruchy Distilleries & Chemicals Limited Trichy Distilleries

Tiruchy Steel Rolling Mills Limited Trichy Alloy steel
Titanium Equipments & Anode Mfg. Co Trichy Steel fabrication
Sea Horse Industries Limited Trichy Energy meters
Vijay Dairy and Farm Products (P) Limited Thuraiyur Milk processing
Sri Vignesh Pipe Industries (P) Limited Thuraiyur PVC pipes
Sri Meenakshi Mills Manapparai Spinning yarn
Maris Spinners Limited Unit II Manapparai Spinning yarn
Radha Textiles (P) Limited Manapparai Spinning yarn
Cethar food Oil Limited Musiri Rice bran oil
Dalmia Cements (Bharath) Limited Pullambadi Cement
Kothari Sugar (P) Limited Lalgudi Sugar and spirits
GB Engineering Enterprises (P) Limited Thiruvermbur Steel fabrication
Jupiter Flour Mill, Thiruvermbur Flour products
Jothi Malleables (P) Limited Thiruvermbur Iron castings
Central workshop, Southern Railway Thiruvermbur Loco engines
Selathar Tanning Industry Thiruvermbur Tannery
Seamless Steel Tube Plant Thiruvermbur Fabrication
Ordnance Factory Thiruvermbur Weapons
Heavy Alloy Penetrator Project Thiruvermbur Weapons
Tiruchirappalli Coop.Milk Producers Union Thiruvermbur Milk chilling
Sangam Organics and Chemicals Thiruvermbur
High Pressure Boiler Plant Thiruvermbur
Table 6-8: Major companies in Thiruchirapalli
6.2.7 CUDDALORE
Economic activity in Cuddalore district is primarily agriculture-based; industries include sugar,
fertilizers, chemicals, pharmaceuticals, ceramics and refractories. The abundance of lignite at Neyveli
has led to the establishment of Neyveli Lignite Corporation; one of the major power suppliers in
South India. The district also has iron ore which is a significant export.
The district has a SIPCOT industrial complex (Phase I & II) and SIDCO industrial estates at Cuddalore
and Vadalur. Major industrial investments (existing and planned) include Cuddalore Power Company
promoted by BGR Energy Systems (power generation), Chemplast Sanmar Limited (PVC rexine),
Thiroo Aroora Sugars Limited (distillery unit), Ambika Sugar (distillery) and Nagarjuna Oil Corporation
(refinery project).
Page | 32
A list of the major companies in Cuddalore District have been collated and presented in table below.
Lignite power generation, urea,
Nevyeli Lignite Corporation Nevyeli
coke
MRK Sugar Mill Sethiathope White crystal sugar (2,500 tcd)
White sugar, alcohol, carbonic
EID Parry (I) Limited Nellikuppam
acid gas
EID Parry (I) Limited Thiygavalli Acetic acid
Parrys confectionaries Nellikuppam Hard boiled sugar candy
Thiru Arooran Sugars (P) limited Chithoor Sugar (3,500 tcd)
Chemplast Sanmar Indl.Alcohol Plant Kadambuliyur Industrial alcohol
Chemplast Sanmar Indl.Alcohol Phase II Cuddalore OT PVC film Mgs
Ambica sugar Mills Pennadam Sugar (5,000 tcd)
TANFAC Cuddalore OT Aluminum fluoride
Vanavil Cuddalore OT Dyes & chemicals
National Cotton Mills Chidambaram Textiles
SPIC Pharma Chemicals Cuddalore OT Penicillin
Asian Paints Limited, Cuddalore OT Paints
Tagros Chemicals (I) Limited Cuddalore OT Ibuprofen
Clariant Chemicals Cuddalore OT Emulsions, textile chemicals
Nagarjuna oil corporation limited Cuddalore Oil refinery
Hardy exploration and production India Inc. Cuddalore Mid sea oil fields
Ship building, ship repair and
APT Global Marine Engg. Private Limited Cuddalore
maintenance
Table 6-9: Major companies in Cuddalore
6.2.8 PUDUCHERRY
Puducherry hosts many manufacturing industries, including tyres, textiles, white goods, paper,
chemicals, engineering products, computer applications products and paints. Major export
commodities from Puducherry include textiles and readymade garments, metal products, food
products, paper and printing products, auto components and electronic goods.
There are two industrial estates in Puducherry. The Mettupalayam Industrial Estate located about 9
kilometer from Puducherry town and spread over an area of approximately 65 ha and promoted by
the Puducherry Industrial Development Promotion Corporation (PIDPC). The major industrial units
located within this industrial estate are Hindustan Lever, Himani and Automotive Coaches &
Components. The second industrial estate is the Sedarapet.
Page | 33
Industrial Estate, also promoted by PIPDC, located about 14 km from Puducherry town in an area of
about 25 ha. The major industrial units located in this estate are Sree Sarabati Steel Tubes Ltd, GE
Power Control India and India Radiators.
Between 1994 and 2000, manufacturing industry in Puducherry grew by 20% owing to the easy
availability of land, water, labor and power, as well as incentives, concessions and tax holidays
declared by the Government of Puducherry (GoP). However, growth has significantly slowed in the
last decade following the withdrawal of concessions. GoP is focusing more on tourism, education and
the IT sectors and places lesser emphasis on the manufacturing sector. This has inhibited growth of
manufacturing industry and also resulted in the closure of many units. Plans to develop Puducherry
SEZ also appear to have stalled owing to land acquisition problems.
A list of the major companies in Puducherry has been collated and presented in table below.

MRF Eripakkam Radial tyres
Whirlpool Thirubuvanai Washing machines
Steering systems and brake lining
Rane Group Puducherry
equipment
CD-ROM, CD-Rewritable drives,
CER Puducherry
keyboards, scanners,
HCL Puducherry Computer hardware
Wipro Thiruvandarkoil Computer hardware
Berger Paints Nettapakam Paints
Suzlon Tiruvandarkoil Wind turbines
PVC Resins, chloro-chemicals and
Chemplast Puducherry
piping systems
Kiran Pondy Silicate products, sulphonic acid, LAB,
Mettupalayam
Chemicals etc.
Table 6-10: Major companies in Puducherry
6.2.9 VILLUPURAM
Modest industrial developments have taken place in Villupuram district, where sugar mills comprise
the main economic activity. There are also a few small scale industries engaged in rice processing,
Page | 34
sago production, rice bran oil extraction and cotton ginning.
Major minerals mined in the district include black granite, blue metals and river sand. The presence
of blue metals has led to the development of many stone crushing units. Due to the modest
industrial development, there are no industrial estates in the district. A list of the major companies
in Villupuram have been collated and presented in table below.

Rajshree Sugars & Chemicals Limited Mundiyampakkam Sugar (5,000 tcd)
Madras Sugars Limited Thirukoilur TK Sugar
BMS Modern rice Mill Viluppuram Rice (13,000 tpa)
Chengalrayan Coop. Sugar Mills Ltd Periasevalai Sugar (3,000 tcd)
M/s.Kaalkurichi Co-operative Sugar Mills Ltd, Unit-II Kachirapalayam Sugar (2,500 tcd)
M/s.Kaalkurichi Co-operative Sugar Mills Ltd, Unit-I Moongilthuraipattu Sugar (2,500 tcd)
Table 6-11: Major companies in Villupuram
6.2.10 SALEM
Salem Steel Plant uses iron ore from Kanchamalai to produce austenitic, ferritic, martensitic and
low-nickel stainless steel in the form of coils and sheets with annual production capacity of 70,000
tpa (cold rolling mill) and 186,000 tpa (hot rolling mill). Salem also has rich agricultural resources
supporting extensive cultivation of mango, tapioca and coffee. Amongst these, mango, tapioca
based products and coffee have lucrative markets across the country. The district also leads in milk
production and produces a variety of dairy products.
Mettur in Salem district hosts TNEBs thermal power plant of 840 MW. Further, TNEB has also developed a
thermal power plant at Mettur TPS Stage III with an installed capacity of 600 MW, which is near completion.
The only industrial estate is at Five Roads Salem. A list of the major companies in Salem have been collated and
presented in table below.

Salem Steel Plant Salem Steel products
Salem Dairy Sithanur-Dalavaipatti Dairy products
Hatsun Agro Products Limited Karumapuram Village, Dairy products
Page | 35
LSP Oil Mills Naickenpatti Palm oil,vanaspati

B.S.P Refineries Palapatti, Arisipalayam dible oil & fats
Jawahar Mills Salem
Narasus Roller Flour Mills Salem Wheat flour, semolina, bran, atta
Magnesite brick, fire brick, calcined
Burn & Company Salem magnesite and man alumina brick.
Salem district Co-op Spinning Mill Salem Textile yarn
Dalmia Magnesite Corporation Ltd Karrupur Magnesite, open-cast mining
Tamil Nadu Magnesite Ltd Salem Raw magnesite
Tata Refractories Karrupur Refractories
Sambandam Spinnnig Mills Salem Yarn
Thambi Modern Spinnig Mills Jahir Ammapalayam Yarn
Sonal Vyapar Limited Kondalampatti Steel products
Chemplast Mettur Dam PVC
MALCO Mettur Dam Aluminium
SISCOL Mettur Dam Pig iron and coke
India Cements Sankari Cement (0.6 Mtpa)
Table 6-12: Major companies in Salem
6.2.11 ERODE:
Major industries in Erode district comprise textiles, rice milling and leather processing. Other
industries include edible oils, chemical and plastic products, paper products and basic metal
products. Various textiles related activities are undertaken in the district; these include handloom
weaving, fabric dyeing, cotton ginning and cotton fabric printing. The major textile centres are at
Erode, Chennimalai, Gobichettipalayam and Bhavani. Erode, Bhavani, Perundurai, Dharapuram and
Kangayam are the major centres of rice mills whereas leather tanneries are located in Ennore and
Dharapuram. Processed leather from these tanneries generates significant export volumes.
Other activities pursued primarily by small-scale industries include handloom weaving, carpet
manufacturing, cart manufacturing, oil pressing and brass vessel manufacturing. Erode district is also
endowed with forests whence teakwood, sandalwood and rosewood are extracted.
A list of the major companies in Erode have been collated and presented in table below.

IOCL Perundurai Crude oil products
Ponni Sugar Odapalli Sugar (50,000 tpa)
Page | 36
Bannari Amman Sugar Sathyamangalam Sugar (4,000 tcd)

Table 6-13: Major companies in Erode
7. ASSESSMENT OF POTENTIAL TRAFFIC
7.1 INTRODUCTION
This section analyzes the potential traffic which could be generated from the Central Tamil Nadu
Hinterland region by examining industrial developments in the hinterland and correlating relevance
of hinterland cargo to the preliminary feasibility of developing a new Green field Port facility. The
traffic assessment has been made basis Govt. of India Maritime Agenda 2020, TN Vision 20203 and
Tamil Nadu Industrial Policy 2014 and also supplemented by meetings with select industries, trade
bodies & stake holders.
Consultants also met with Capt. S. Sainath (State Port Officer Rtd.) and Capt. M. Anbarasan (State
Port Officer & Ex. Cuddalore Port Officer) of Tamil Nadu Maritime Board in order to ascertain
potential and preliminary feasibility of developing Silambimangalam minor port as a multi-user
Greenfield Port facility.
Table 7-1: Methodology adopted for assessing traffic originating from Central TN Hinterland
Action Activity Target Components
Step-1 Determine extent of hinterland and scan Industrial developments
economic activity in the hinterland Industrial Infrastructure
Major companies
Step-2 Determine potential cargo mix Dry & Liquid Bulk, Break bulk, Containers
and perishables
Step-3 Undertake potential competing Port for Kattupalli Port
assessed Traffic Kamarajar Port
Chennai Port
Karaikal Port
VO Chidambaranar (Tuticorin) Port
Step-4 Cargo analysis Market dynamics
Potential sources - major companies,
industries or sectors
Opportunities and constraints
Step-5 Assess cargo potential for a new Green Potential cargo volumes from central and
field Facility western hinterland
Port competition
Macro-economic considerations
7.2 CARGO POTENTIAL ANALYSIS
Based on the potential cargo-mix, current & future estimated volumes potential cargo analysis is
Page | 37
undertaken as detailed below
7.2.1 COAL
The major users of thermal coal comprise:
Thermal power plants
Cement plants
Sugar mills
Paper mills
Puducherry and Tamil Nadu do not possess coal of the quality and quantity required to meet
industrial requirements (power generation and other industries) and these are to be met by
procuring coal imported from coal fields located in Orissa and Jharkhand (or) abroad (Indonesia,
Australia, S. Africa, U.S.A.) . In both cases, seaborne transport is the only solution for bring coal to
the industries located in Tamil Nadu.
In order to estimate the total potential of coal import into Tamil Nadu ports, it is helpful to analyze
historical trends of coal traffic at Chennai, VOC Port, Kamarajar (Ennore) and Karaikal Ports as this
provides an accurate picture of coal volumes imported into the state. Table below shows coal
volumes handled at these ports between 2006/07 and 2012 (till Oct).
Table 7-2: Coal volumes at Chennai, VOCP, Kamarajar and Karaikal port
2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13
Chennai 3.35 3.75 4.10 3.06 2.02 2.84 0
VOCP 6.77 8.12 7.63 8.80 8.20 9.27 10.61
Kamarajar 8.80 9.05 9.71 9.28 9.37 13.11 14.93
Karaikal - - - 1.16 4.00 4.70 4.5s0
7.2.1.1 COAL FOR THERMAL POWER PLANTS

Tamil Nadu is power deficit state despite being the 3rd largest state in terms of installed generation
Page | 38
capacity (19.4 GW) in the country only behind Maharashtra (31.3 GW) and Gujarat (26.0 GW).
Table 7-3: Sources of power Tamil Nadu
The state-owned Tamil Nadu Power Generation & Distribution Company, TANGEDCO (erstwhile
TNEB) provides the predominant share of thermal power generated in Tamil Nadu, with the
remainder generated by private sector companies. About 38% of the total installed capacity is wind/
solar power which is highly undependable due to its volatility across the months and within a day.
The State has added about 800 MW of capacity in the 5 year period FY08-FY12 (a CAGR of just 2%)
and this is primarily the reason for the current power crisis as the energy demand grew by a CAGR
of more than 7% in the same period. Power generation in Tamil Nadu is likely to rise significantly in
the future as a slew of new projects have been proposed by private player and hence the clear way
forward for Tamil Nadu was to create more base-load thermal plants.
The following section examines the power generation plans in the state, separately for TNEB and
private players
7.2.1.2 TAMIL NADU ELECTRICITY BOARD
TNEB has installed power generation capacity of 3,570 MW. Table below lists the TNEB plants in
Page | 39
operation
Table 7-4: Operating TNEB power plants
Thermal Plant Installed capacity (MW)

Ennore 450
Tuticorin 1,050
Mettur 840 + 600
North Chennai 630
Total 3,570 MW
The coal requirements of the TNEB power stations at Ennore, Tuticorin and North Chennai are
captive to Kamarajar and Tuticorin ports. Only the requirements for Mettur power station can
potentially be diverted to a new Greenfield facility midway between Chennai & Tuticorin.
Table 7-6: lists the locations of the new thermal power plants that TNEB proposes to set up, either
independently or in joint venture
Table 7-5: Proposed power plants by TNEB
Installed
Name Location capacity Schedule of commissioning
(MW)
North Chennai
North March 2014
TPS- Stage II- 600
Chennai
unit 1
North Chennai
North March 2014
TPS- Stage II- 600
Chennai
unit 2
NTPC- TNEB Vallur 1,500 March 2014
NLC- TNEB Tuticorin 1,000 June 2014
December 2016
Approval of GOTN for the establishing of 660 MW Project under State
sector received on 30.03.2012.
The Environmental Clearance received from MoEF / New Delhi for
660 MW
on 24.01.2013.
ETPS Annexe Ennore 660 Consent to Establish for the same has also been received from TNPCB
on
18.02.2013.
Letter of award for EPC works issued to M/s. Lanco Infrastructures
(India)
Limited on 27.02.2014.
December 2017
North Chennai North
800 The barren land of 190 Acres available within the existing NCTPS
TPS- Stage III Chennai
Complex has been proposed for this Project and hence there is no
Page | 40
new land acquisition and no R&R issues.

GOTN has issued orders to execute the Project under State sector
vide Letter No.104, dt.26.10.2010
Expert committee, MoEF finalized TOR for the project on
10.04.2012.
Various studies for obtaining EC are underway
December 2017
GOTN has issued order to execute the Project under State sector on
31.01.2011
Govt. of Tamil Nadu has approved vide Energy department letter
Ennore SEZ
North dated 01.02.13 for standardization of all units as 660 MW.
Thermal Power 1,320
Chennai CRZ clearance obtained on 01.01.2014
Plant
Environmental Clearance obtained on 07.01.2014
Tender for the Project opened on 26.07.2013 and the same is under
scrutiny.
December 2017
About 900 acres of lands have been identified in Uppur, Vadamavur
& Thiruppalaikkudi in Thiruvadanai Taluk, Ramanathapuram District.
GOTN has accorded approval for the establishment of the project
Uppur Thermal Thiruvada under Tariff Based Competitive Bidding Route, vide GOTN Lr.(Ms.)
1,600
Power Plant nai No.91, dt.24.10.11
The Expert committee meeting of MoEF / New Delhi considered the
proposal in its meeting held on 09.04.2012 to finalise Terms of
Reference (TOR).
Various stages for obtaining EC for the project are underway
NTPL Tuticorin December 2017
Thermal Power Tuticorin 1000 Application has been made to MoEF for finalization of ToR for EIA
Project study. The result is awaited.
At preliminary stage. TNEB has decided to establish the plant without
TNEB Udangudi 1,600
support from BHEL, erstwhile joint venture partner for the project
Estimated 2016/17
GoTN issued administrative sanction for acquisition of jetty area.
UMPP Cheyyur 4,000 MoEF Clearance accorded
RFQ floated in 2013 and 8 bidders short-listed
RFP to be released in April / May 2014
14,680
Total MW
These proposed power projects are planned to be implemented by 2015 ~ 2017. However, some of
them may face delays that cannot be realistically assessed at this stage. Coal for Mettur TPS Stage III
and UMPP at Cheyyur can be considered as strong prospects for a new Port on the Cuddalore region.
The other proposed power plants lie closer to Kamarajar and VO Chidambaranar Ports and would
prefer these ports from distance considerations. Table 7- 7shows the likely ports of choice based on
the distance factor.
Table 7-6: Ports of choice for the proposed TNEB power plants
Page | 41
Estimated
Name of the Station Location Port of Choice Coal
Requirement
North Chennai TPS-
North Chennai Kamarajar N/A
Stage II (Unit 1 & 2)
Currently utilize Kamarajar Port for 4X210 MW
Mettur TPS Mettur units and coal for 1X600 MW unit can be 2.1 MTPA
targeted at new Greenfield Port
NTPC- TNEB Vallur Kamarajar N/A
NLC- TNEB Tuticorin VOC Port N/A
TNEB- BHEL Udangudi VOC Port N/A
ETPS Annexe Ennore Kamarajar N/A
North Chennai TPS-
North Chennai N/A
Stage III Kamarajar
Ennore SEZ Thermal
North Chennai N/A
Power Plant Kamarajar
Uppur Thermal
Thiruvadanai N/A
Power Plant VOC Port
Tuticorin Thermal
Tuticorin N/A
Power Project VOC Port
Potential Coal Quantity targeted for alternate Greenfield Port 2.1 MTPA
Note: Coal Requirement estimated basis 1 MW = 3,500 MT/year of Coal if blended high-quality
coal is utilized. This is an average and if coal with low calorific value is utilized, approximately
5,000 MT/year is required for 1 MW power generation.
7.2.1.3 COAL FOR METTUR THERMAL PLANT

The Mettur Thermal Power Station is a coal-fired electric power station located in Salem district
of Tamil Nadu. It is operated by Tamil Nadu Generation and Distribution Corporation Limited and is
the first inland thermal Power Station of TANGEDCO (erstwhile TNEB). The power station was
commissioned during various periods from 1987 and coal from Mahanadi Coalfields Limited (Talcher
and Ib Valley) and Eastern Coalfields Limited (Raniganj and Mugma) are transported to the load ports
of Paradip (Orissa), Vizag (Andhra Pradesh) and Haldia (West Bengal). Thereafter the coal is
transported to the discharge ports of Ennore by ships. From Ennore Port the coal is transported
again through rail to Mettur Thermal Power Station.
Page | 42
Figure 2 Map of Benefit of Central Location
The above map represents the different distances from Mettur Thermal Plant to other port locations.
With the above diagram of railway distances, it is apparent that Cuddalore Port Junction is situated
has the shortest distance from Mettur Power Plant i.e. of 243 km as opposed to 392 Kilometers
(Ennore) & 430 Kilometers (V.O. Chidambaranar Port) for importing Coal for Power plant units.
Page | 43
Mettur Power Plant to Ennore Mettur Power Plant to Mettur Power Plant to
port rail route Tuticorin Port Rail Route Cuddalore Port Rail Route
Distance Station Name Distance Station Name Distance Station Name
In kms In kms In kms
Mettur Thermal Mettur Thermal Mettur Thermal

0.0 0.0 0.0
Power plant siding Power plant siding Power plant siding
44..24 Karuppur 45.25 Salem Jn 45.25 Salem Jn.
241.22 Katpadi Jn. 204.41 Dindigul Jn 184.46 Vridhachalam Jn
301.97 Arakkonam 270.35 Madurai Jn 198.66 Uttangal Mangalam
364.97 Perambur 313.53 Virudhunagar Jn 211.95 Vadalur
Kamarajar Port Tuticorin Port Cuddalore Port Jn.

391.56 429.16 242.37
Siding, Attipatu siding
It must be noted here that while this report does not include the volumes required for the Mettur
Thermal Power plant for estimating total coal requirements, this section has been introduced in
the report purely for the sake of highlighting the logistical cost savings which will be possible for
TANGEDCO by way of reduced railway freight in the event a facility for coal imports was available
in the Cuddalore Region.
7.2.1.4 POWER PROJECTS PLANNED/ DEVELOPED BY PRIVATE COMPANIES

Many private companies plan to develop/ have developed thermal power plants in central and western Tamil
Nadu these are listed in Table 7-8
Table 7-7: Power projects by private companies
ESTIMATED
ANNUAL
CAPACIT REMARKS ON COAL LOGISTIC
DEVELOPER LOCATION COAL
Y (MW) OPTIONS
REQUIREMEN
T
Proposed to be developed by a private
player with a captive coal facility but
UMPP (PFC / CTPGC) Cheyyur 4,000 14.0 MTPA
this cargo can be targeted to be
handled at a new Greenfield facility
IL& FS Tamil Nadu Have permission for developing
Power Company Cuddalore 3,600 Captive Port in Parangipettai but this 12.6 MTPA
limited (Phase-I) cargo can be targeted to be handled
Page | 44
at a new Greenfield facility

Planned to develop captive jetty in
Cuddalore Power
Cuddalore but this cargo can be
Generation Cuddalore 1,320 4.6 MTPA
targeted to be handled at a new
Corporation Limited
Greenfield facility
Planned to use Thiruchopuram port
due to its proximity but as NOCL Port
SRM Energy Limited Cuddalore 1,980 project is stalled this cargo can be 7.0 MTPA
Greenfield facility
Plan to build captive jetty at
Sindya Power
Poompuhar and this cargo can be
Generating Company Nagapattinam 1,320 4.6 MTPA
Pvt. Limited
Greenfield facility
Chettinad Power Tharambagadi and this cargo can be
Nagapattinam 1,320 4.6 MTPA
Corporation Limited targeted to be handled at a new
Greenfield facility
PEL Power Limited Nagapattinam 1,320 4.6 MTPA
Greenfield facility
Plan to use Nagapattinam port and
Depending on new Greenfield site,
ETA Group Nagapattinam 1,320 4.6 MTPA
Empee Group Nagapattinam 1,320 4.6 MTPA
Greenfield facility
Plan to build captive jetty at Vanagiri
NSL Power Limited Nagapattinam 1,320 and this cargo can be targeted to be 4.6 MTPA
Planned to use Thiruchopuram port
due to its proximity but as NOCL Port
Tannex Power
Cuddalore 110 project is stalled and this cargo can be 0.4 MTPA
Generation Limited
Greenfield facility
Have proposed to handle coal through
Tyyavalli port. However, this
Ind Bharath Power
Cuddalore 450 development seems unlikely and this 1.6 MTPA
(Cuddalore) Ltd.
cargo can be targeted to be handled
at a new Greenfield facility
Plan to build commercial port facility
including jetty for captive coal
Tridem Power and requirements at Thirukuvalai.
Nagapattinam 1,820 8 MTPA
port Depending on new Greenfield site,
Page | 45
Plan to build captive jetty, Depending

UDI Infrastructure on new Greenfield site, this cargo can
Nagapattinam 1,980 6.4 MTPA
Private Limited be targeted to be handled at a new
Greenfield facility
Nagai Power Nagapattinam 300 Intend utilizing Karaikal port N/A
Seshasayee Paper & This cargo can be targeted to be
Erode 20 0.1 MTPA
Boards Limited handled at a new Greenfield facility
This cargo can be targeted to be
ETL Infrastructure Erode 18 0.1 MTPA
Chettinad Cement
Karur 30 Intend utilizing Karaikal port N/A
Corporation
Madras Aluminium This cargo can be targeted to be
Mettur 100 0.4 MTPA
Co. Limited handled at a new Greenfield facility
Ariyalur/RR This cargo can be targeted to be
Madras Cements Ltd. 65 0.2 MTPA
Puram handled at a new Greenfield facility
23,713 Proposed Targeted Coal for new
Total 83 MTPA
MW Greenfield Facility
Note: Coal Requirement estimated basis 1 MW = 3,500 MT/year of Coal if blended high-quality
coal is utilized. This is an average and if coal with low calorific value is utilized, approximately
5,000 MT/year is required for 1 MW power generation.
Table above indicates that private plants in the region between Chennai & Nagapattinam account for
nearly 24,000 MW of planned private sector capacity additions. As most locations are on the coast
and the required coal volumes large, developers have broad plans of considering the practicality of
building captive coal handling facilities or of using ports that are planned to come up near their
plant(s).
Bearing in mind the environmental burden imposed by developing a captive facility to cater to each
of the proposed plant, it is envisaged that a common user Greenfield Port facility developed at an
ideal location somewhere between Chennai & Nagapattinam can cater to the full requirements of all
the proposed facilities.
This will make the Port a profitable venture while simultaneously lessening the Environmental
impact, coastline erosions etc. which are likely to be experienced if a number of facilities are
developed along the coast.
7.2.1.5 POTENTIAL COAL VOLUMES FOR A GREENFIELD ALTERNATE PORT AN ANALYSIS

Potential volumes which could be attracted to an alternate Greenfield Port facility have been
analyzed by evaluating projected timelines of the proposed projects, possibility of a certain
percentage of the proposed plants not being implemented against the logistical benefits an
alternate port facility would bring to the coal transportation chain.
Page | 46
The TNEB berths at Kamarajar port CB-1 & CB-2, have a total capacity of 12 MTPA with CB-1
equipped with two ship unloaders (8 MTPA capacity) and CB-2 with no ship unloader and equipped
with hoppers 4 nos.) with annual handling capacity of 4 MTPA. There are plans to deepen the draft
at CB1 & CB-2 install a second ship unloader at CB-2 which would increase the capacity to 8 MTPA
thereby providing for the total capacity at both the TNEB berths to 16 MTPA.
Further, the Port is also currently (as of March 2014) awarded the development of CB-3 berth to ITD-
Cem and which is likely to be completed by March 2016 with a handling capacity of 8 MTPA initially
and increasable further (through dredging) to 9.5 MTPA. Further, the Port is likely to develop an
additional coal berth CB-4 with a capacity of about 9.50 MTPA. The Chettinad Coal Berth which is the
only private coal handling berth at the Port can handle about 6.0 MTPA which can be increased to a
maximum of 8.0 MTPA.
These additions to capacity will bring the total coal handling volumes of TNEB coal at Kamarajar
Port to about 35.0 MTPA of which 24.0 MTPA will be on-line by March 2016 and the full capacity
will be available by March 2018. Private coal handling capacity will be 8.0 MTPA. With this we can
assume that coal requirements for TNEB plans at Ennore and partly of Mettur will be fully catered
to.
Karaikal port is currently handling coal on two berths with one ship unloader on each berth by FY13.
Under Phase 2A expansion plans, the mechanization of coal berth involving installation of ship
unloaders, stacker reclaimer and a wagon loading system is underway. Through such development,
the total handling capacity is expected to reach a maximum of 16 MTPA from the existing capacity of
about 10.0 MTPA which is being achieved through deploying of Mobile harbor cranes currently. The
capacity developments at these ports including Chettinad coal terminal at Ennore is summarized in Table 7-10.
Table 7-8-: Estimated capacity developments at Kamarajar and Karaikal port

Figures in Million Metric Tons Per Annum
PORT FY13 FY14 FY15 FY16 FY17 FY18
TNEB berths at Kamarajar port 12.0 12.0 16.0 24.0 24.0 35.0
8.0 8.0 8.0 8.0 8.0
Chettinad coal terminal 8.0
6.0 12 12.0 12.0 12.0

Karaikal port 6.0
Page | 47
The proposed power projects, both independent & state developed, Basis the 83.0 MTPA coal requirements
projected to be developed by Independent power producers and 2.1 MTPA of coal for the Stage III expansion
at the Mettur power plant, it is assumed that the targeted potential would be in the region of about 85.1 MTPA
catering to roughly 24,000 MW of power generation. The coal demand has been projected assuming a high
calorific value blended coal is used for the power plants.
Assuming that only 60% of the projects are commissioned i.e catering to about 15,000 MW power generation,
there is still a targeted potential of about 53 MTPA which will require to be handled. Chennai Port has banned
all coal handling and the existing and planned capacity at Kamarajar Port will be fully utilized by the TNEBs own
plant requirements. V.O. Chidambaranar Port is located too far from proposed sites and therefore logistically
unviable. Karaikal Port is the only alternate facility which can handle a part of the projected 53 MTPA of coal.
By this analysis, if 60% of the projected 53 MTPA of coal is targeted, the annual coal volumes amount to about
32 MTPA of Thermal Coal for the proposed new facility.
The Tamil Nadu Vision 2023 documents stated objectives are to add about 20,000 MW to the state grid and
therefore assuming that only about 10,000 MW of power generation is put on-stream in the region by 2023 of
which, 50% of the coal volumes required will be need be handled at an alternate facility due to lack of capacity
at other facilities, the potential coal volumes to a Greenfield Port in between Chennai & Nagapattinam have
been estimated in Table below.
Table 7-9: Coal volumes for Greenfield Port by potential IPP & Mettur power plants
Developer Estimated incremental coal traffic to a Greenfield Port
FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24
TNEBs
Mettur - 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0
power plant
IPP Plants - - - 5.0 5.0 8.0 8.0 10.0 12.0 15.0 15.0 15.0
Total
2.0 2.0 7.0 7.0 10.0 10.0 12.0 14.0 17.0 17.0 17.0
volumes
Table above shows the potential coal volumes for thermal power plants derived on the above basis until 2024.
The basis assumption is that even if only 10,000 MW of the planned 20,000 MW is put online in the state by the
year 2023, the projected coal demand would be about 35 MTPA of which at least 50% will required to be
handled at an alternate facility i.e. 17 MTPA.
Subsequently, capacity additions will increase to about 15,000 MW requiring a coal volume of 53 MTPA by the
year 2035 and 60% of this volume targeted at the new Greenfield facility amounts to about 32 MTPA.
7.2.1.6 CONCLUSION
Page | 48
Based on current and projected demands, there is a clear potential of about 32 Million Tons of coal cargo for
the proposed new Greenfield facility by the year 2035.
7.2.1.7 COAL IMPORTS BY CEMENT PLANTS

The All-India cement production capacity has been estimated through the various industry sources at 270
MTPA against a total installed capacity of about 375 MTPA. There is a rapid surge in construction activities in
the state induced by growing investments in the infrastructure sector. The long term outlook for the cement
industry indicates that the annual production capacity in India will increase conservatively @ 5% and the Tamil
Nadu State would maintain its current market share of about 10% of all-India production by keeping pace with
capacity augmentation undertaken in the northern and western regions to address increasing demands from
the infrastructure sector. About 60% of total cement production in the state is by plants in central Tamil Nadu
in the cement belt of Ariyalur.
The cement industry broadly requires 0.15 Mt of coal to produce 1 MT of cement - this figure allows
for the use by many cement factories of petroleum coke as a supplementary fuel. Accordingly, the
potential coal volumes have been pegged at 25 x 60% x 0.15 = 2.25 MTPA. Future capacity
augmentation will occur either by expanding existing plants or setting up new units.
Cement production in central Tamil Nadu was projected to grow at 10% in line with the estimated
growth parameters set by Vision 2023 at all India level because of
Improved economic outlook
Strong demand from the housing market
Buoyant demand conditions supported by strong growth in infrastructure and

Government spending on the rural sector
Strong industry profitability.
It is understood that coal requirements of most cement companies located in Ariyalur belt are being
handled at Karaikal port owing to distance factor. It is understood that the Port has entered into
contract with many major cement companies for handling their coal imports- this includes Chettinad
Cement, Dalmia Cement, Madras Cement and India Cements. However, the pricing of coal imports
from Karaikal Port and logistical distance from the Port to plant sites is a competitive factor and at
least 40% of potential coal requirements can be attracted to a new Greenfield facility.
Page | 49
Coal volumes generated by cement plants located in central Tamil Nadu are considered to arrive at
potential traffic to a Greenfield Port located midway between Chennai & Nagapattinam. The share in
medium to long term is lowered to 40%, considering proximity to Karaikal.
Table 7-10 : shows the potential coal import volumes for cement plants
Year FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021
Indian Cement production 270 MMTPA 284 MMTPA 298 MMTPA 313 MMTPA 328 MMTPA 345 MMTPA 362 MMTPA
Tamil Nadu Cement
27 MMTPA 28 MMTPA 30 MMTPA 31 MMTPA 33 MMTPA 34 MMTPA 36 MMTPA
production @ 10% share
Central Tamil Nadu cement
production is @ 60 % market 16.2 MMTPA 17.0 MMTPA 17.9 MMTPA 18.8 MMTPA 19.7 MMTPA 20.7 MMTPA 21.7 MMTPA
share
Estimated Coal requirement
2.4 MMTPA 2.6 MMTPA 2.7 MMTPA 2.8 MMTPA 3.0 MMTPA 3.1 MMTPA 3.3 MMTPA
for producing cement
Potential for Greenfield port
@40 % of coal required 1.0 MMTPA 1.0 MMTPA 1.1 MMTPA 1.1 MMTPA 1.2 MMTPA 1.2 MMTPA 1.3 MMTPA
(MMTPA)
Tamil Nadu Cement

share
(MMTPA)
Tamil Nadu Cement

share

(MMTPA)
7.2.1.8 COAL DEMAND FROM OTHER SOURCES

Coal demand from other industries/traders arises primarily from paper mills, sugar mills, steel mills
Page | 50
and major coal traders. The major coal importers in Central TN Belt who are currently importing from
Karaikal port include JSW, TNPL, TA Sugars, Sanmar Chemplast, Coastal Energen Private Limited
(CEPL) and Adani Enterprises.
JSWs imports largely comprising coal, coke and iron ore are directed largely through four ports i.e.
Chennai, Krishanpatinam, Mormugao and Karaikal. While Mormugao and Karaikal mainly cater to the
requirements of JSWs steel plant at Vijaynagar and Salem respectively, the other two ports i.e.
Chennai and Krishnapatinam feed steel plants at both the locations. In 2011 after Chennai Port
banned all coal handling, during 2011/12, JSW has initiated operations at additional ports in
Mangalore, Ennore, Gangavaram and Ratnagiri to ensure secured supplies of raw materials.
JSW handles iron ore and coal through Karaikal port. Coastal import of iron ore from Dhamra port
(temporarily banned by Supreme Court) and Coal from Karaikal port is imported for the JSWs captive
power plants. This coal imports from Australia is estimated at 0.8 Mtpa.
TNPL, the major paper mill located in Karur, has installed pulp production capacity of 0.25 MTPA. The
company operates five turbo generators (TGs) with a power generation capacity of 81.12 MW
including one new TG of 20 MW added under the Mill Development Plan during 2007/2008. Power
required for process purposes is met from captive power sources and surplus power is exported to
the state grid depending on the economics. The total coal needed by TNPL for their power
generation is considered at 0.6 MTPA.
Page | 51
Coal required by sugar mills in the state is lower owing to TEDAs initiative to promote co-generation
power plants by the sugar mills. In fact, many sugar mills across India have established co-generation
plants that substantially reduce the requirement for coal as fuel. Through this technology, the sugar
mills use bagasse instead of coal to generate the power and steam required for sugar production.
There are about 18 private sugar mills and 3 cooperatives in Tamil Nadu that have installed
cogeneration plants. While most private mills have adopted this mode of power generation, the co-
operative and public sector mills in Tamil Nadu have only recently begun to set up cogeneration
plants. The average cane crushing period in Tamil Nadu is the highest among all sugar producing
Indian states and estimated at about 180 days (6 months), which indicates that bagasse would be
available for power generation over a prolonged period. It is envisaged that that the sugar mills in
Tamil Nadu will add substantial power generation capacity by co-generation in future. Co-generation
is also expected to increase considerably as the sugar mills have begun to deploy energy efficient
technology. The consumption of coal however is likely to continue as the availability of bagasse is
erratic, leading to the inevitable use of coal or other alternative fuels in such situations for power and
steam generation by the sugar mills.
Another major source of coal traffic is import undertaken by coal traders like Adani Enterprises,
Bhatia Coal, Coastal Energen Private Limited (CEPL), etc. who import coal on behalf of industries
including textile mills, paper mills, sugar mills, paints, etc. The total coal through all such other
sources is estimated at about 3 MTPA. The growth rate assumed for these other sources is 2% p.a.
7.2.1.9 POTENTIAL COAL TRAFFIC AT GREENFIELD PORT

The potential coal traffic for Karaikal port has been derived as the sum of coal demand for thermal power
plants, cement plants, and other sources, as summarized in
Page | 52
Table 7-11 : Total potential coal volumes for Karaikal port
Total Coal Traffic Projection for Greenfield Port (MMTPA)

Thermal Power
Generation Coal traffic
Cement mills coal traffic 1.0 MMTPA 1.0 MMTPA 1.1 MMTPA 1.1 MMTPA 1.2 MMTPA 1.2 MMTPA 1.3 MMTPA
Other sources coal traffic 0.0 MMTPA 3.0 MMTPA 3.0 MMTPA 3.0 MMTPA 3.0 MMTPA 3.0 MMTPA 3.0 MMTPA
Total Coal Traffic

Projection (MMTPA)

Thermal Power
Total Coal Traffic
Projection (MMTPA)
Thermal Power
Total Coal Traffic

Projection (MMTPA)
7.2.2 CEMENT
As mentioned before, The All-India cement production capacity has been estimated through the
various industry sources at 270 MTPA against a total installed capacity of about 375 MTPA. There is a
rapid surge in construction activities in the state induced by growing investments in the
infrastructure sector. After applying capacity utilization factors published by the cement industry,
the actual production of cement is estimated at about 25 MTPA in Tamil Nadu as against 270 MTPA
overall india, roughly 10% share of Indias production. The long term outlook for the cement industry
indicates that the annual production capacity in India will increase conservatively @ 5% and the
Tamil Nadu State would maintain its current market share of about 10% of all-India production by
keeping pace with capacity augmentation undertaken in the northern and western regions to
address increasing demands from the infrastructure sector. About 60% of total cement production in
the state is by plants in central Tamil Nadu in the cement belt of Ariyalur.
Page | 53
Growing investments in the infrastructure sector have led to a surge in construction and demand for
cement within the state is estimated to exceed 20 MTPA. The surplus is exported (predominantly to
Sri Lanka) or sold in the domestic market (mainly Karnataka, Andhra Pradesh and Kerala and the
Western region).The long term outlook for the cement industry indicates that the state will maintain
its current market share of about 10.0% of all-India production by keeping pace with capacity
augmentation undertaken by plants in the northern and western regions.
Since Tamil Nadu has rich reserves of limestone deposits in Ariyalur, Perambalur and Trichy districts, many
cement companies have established cement plants in these regions. Thus about 60% of total cement
production capacity in Tamil Nadu (approximately 15 MTPA) is located in central Tamil Nadu and is in the
primary hinterland of a new Greenfield facility which could be developed. Ariyalur especially has a high
concentration of major cement companies -TANCEM (Ariyalur Cement Works), Madras Cements, Dalmia
Cements, Chettinad Cement and India Cement. Many capacity augmentation and green field developments
have been planned by Dalmia Cements, Chettinad Cements, India Cements, ACC, Madras Cements and others
Table 7-12 : Cement plants in Central Tamil Nadu
Madras Madras
TANCEM Dalmia Dalmia Chettinad India Cement Grasim Cement
Cement Cements Cements
(Ariyalur Cements Cements Cements Factory Factory Total
plant Limited Limited
Cement Works) Thamarikulam Dalmiapuram Kizhapalavoor Dalavoi Reddipalayam
Alathiyur Works Govindapuram
Location Ariyalur Ariyalur Ariyalur Ariyalur Trichy Ariyalur Ariyalur Ariyalur
Existing 0.5 MMTPA 3.1 MMTPA 2.0 MMTPA 2.5 MMTPA 4.0 MMTPA 5.5 MMTPA 2.2 MMTPA 1.4 MMTPA 21.2 MMTPA
Proposed 0.0 MMTPA 0.0 MMTPA 2.5 MMTPA 2.5 MMTPA 0.0 MMTPA 0.0 MMTPA 2.6 MMTPA 0.0 MMTPA 7.6 MMTPA
Total 0.5 MMTPA 3.1 MMTPA 4.5 MMTPA 5.0 MMTPA 4.0 MMTPA 5.5 MMTPA 4.7 MMTPA 1.4 MMTPA 28.7 MMTPA
The potential cement volumes for a new Greenfield Port have been assessed with respect to export and coastal
trade as follows
7.2.2.1 CEMENT EXPORT

Since 2007, the gap between demand and supply has widened due to substantial capacity additions
on one side and low demand condition arising due to gloomy economy conditions on the other side.
Such unfavorable demand and supply scenario has put pressures on capacity utilization of the
cement industry with all-India capacity utilization declining to around 60% in FY12 and FY13 as
compared to about 90% in FY07. South India has witnessed one of the highest capacity additions
(largely due to its highest share of cement-grade limestone reserves) in recent past and is likely to
see substantial capacity addition in short term time frame.
Though the capacity expansion in the country is expected to slow down, the cement industry will
further add capacity and the existing supply glut will continue to put pressure on utilization levels
Page | 54
which may maintain the 60% level at least in the short term. Thereafter the utilization levels will
largely be a function of demand prospects.
In view of the above, the demand growth is estimated at 5% in short term. Whereas in medium to
long term, the demand is estimated to grow at 8% on account of the following considerations:
Increased level of governments spending on infrastructure sector Adoption of corrective

fiscal measures
Improved regulations with respect to land acquisition and environment clearances

Although South India has historically been a cement surplus region (of the seven major limestone
clusters, four are located in South India), it is also a major consumer of cement. However,
considerable reduction in the demand growth for cement has been witnessed in Andhra Pradesh,
(one of the leading cement consuming states of India) owing to political instability. In view of this,
demand of cement for the short term, say till FY14 is likely to remain at about 5% in South Indian
states- capacity utilization levels to remain at 60%.
Due to planned capacity additions, there is a strong likelihood of a significant exportable surplus of
cement from producers in Andhra Pradesh and Tamil Nadu. Many companies, including Dalmia
Cements, Chettinad Cements, India Cements, ACC and Madras Cements, plan to scale up or set up
new plants in Tamil Nadu.
At present, Karaikal port handles bagged cement exports to Sri Lanka for Madras Cements and Dalmia Cements.
These are typically carried in in average parcel sizes of 2,000 t. Cement is also handled in containers stuffed
with 50 kg bags. The cement volumes over the last 3 years handled at Karaikal port is shown as Table 7-18
Table 7-13 : Cement volumes at Karaikal port
Year 2010/11 2011/12 2012/13 2013/14

Karaikal
Port Export 0.04 MMTPA 0.11 MMTPA 0.15 MMTPA 0.17 MMTPA
estimate
Containerized cement transport is an attractive proposition as it provides the convenience of fast

handling rates at the ports (compared to the break-bulk mode) by facilitating transport of a single 20
Page | 55
MT unit without major handling encumbrances.
In the recent past, cement exports have been adversely affected as Middle Eastern and West Asian countries
have built their own cement production capabilities. However, Indian cement companies have developed
alternative markets in Sri Lanka, Iraq and Africa. In particular, Madras Cements, Dalmia Cements and India
Cements have received approvals from the Sri Lankan quality certification body for their cement.
Despite the fast growth in domestic demand, Indian cement companies may have to rely on
increased seaborne exports in the longer term in order to sustain their large capacity additions.
However, cement exports will largely hinge on domestic demand and prices vis a-vis international
prices. The latter will be dictated by international competition - cement-surplus countries such as
Pakistan and Bangladesh are serious competitors for the Sri Lankan and Iraqi cement markets. In the
report, a growth of about 2% in the initial phase ramping up to 5% following realization of capacity
additions as a tenable premise for Indian cement exports.
7.2.2.2 SUMMARY
A new Greenfield facility strategically located with respect to Ariyalur, where major cement
companies have cement plants due to the availability of limestone reserves. The prevailing
unfavorable demand supply scenario owing to poor demand and substantial growth in production
capacity should lead to exportable surplus in short to medium term- thereafter the export
performance shall be function of domestic demand and international prices. However, the export
volumes are likely to be modest considering the limited market size and lower price realizations in
the global market. Sri Lanka, Iraq and Africa offer export markets for Indian cement manufacturers
In view of strong domestic demand and global competition for exports, it is estimated that cement
exports will grow at 2% per annum in the initial phase gradually ramping up to 5% per annum
thereafter
Transport of cement from Ariyalur to the eastern states using coastal shipping appears unlikely.
Intermittent coastal volumes based on specific short term contracts may however fetch some
volumes but this is not likely to be regular feature. The estimates for Cement export have been
presented in Table below.
Table 7-14 : Estimated cement volumes for Karaikal port
Page | 56
Potential Annual
Cement export
volumes from 0.20 MMTPA 0.20 MMTPA 0.21 MMTPA 0.21 MMTPA 0.22 MMTPA 0.22 MMTPA 0.23 MMTPA
Central TN
(MMTPA)
Potential for
Greenfiel Facility 0.10 MMTPA 0.10 MMTPA 0.10 MMTPA 0.11 MMTPA 0.11 MMTPA 0.11 MMTPA 0.11 MMTPA
@ 50% share

Potential Annual
Cement export
Central TN
(MMTPA)
Potential for
@ 50% share

Potential Annual
Cement export
Central TN
(MMTPA)
Potential for
@ 50% share
7.2.3 SUGAR
7.2.3.1 PRODUCTION
Tamil Nadu, with 44 sugar mills, produces about 10% of total Indian sugar production. The
ownership distribution of the mills is:
Co-operatives 16
Public 2
Private - 26
During 2011/2012, the mills in Tamil Nadu crushed about 25 Million Tons of sugarcane, producing 3.5 Million
Tons of sugar. Crushing volumes vary considerably from year to year depending upon cane availability.
Similarly, sugar recovery rates are highly dependent upon the monsoon and usually range between 8.5% and
9.5%. Sales of sugar produced in 4 to 6 months of the sugar season are staggered over a period of a year or
more. Many private sugar mills have undertaken capacity expansion plans in recent years and a few companies
have proposed to set up sugar mills. The sugar industry in Tamil Nadu has flourished due to the presence of the
following growth drivers:
Page | 57
Good soil conditions and abundant water with the highest sugar cane yield in the country
Average farm size less than a hectare
Deployment of new farming practices and cultivation methods to improve yield (including
mechanization)
Access to ports to reach export markets and improved development of infrastructure facilities
Healthy interface between cane growers and sugar mills to ensure adequate supply of cane
Focused sugarcane breeding programs to ensure timely availability of newer varieties

Table 7-15 Sugar mills in central Tamil Nadu
Factory Location Capacity (TCD)

Cooperative Mills
Ambur Coop. Sugar Mills Limited Vellore 1,400
The Amaravathi Coop. Sugar Mills Limited Coimbatore 1,250
Tirupattur Coop. Sugar Mills Limited Vellore 1,400
Dharmapuri district Coop. district Sugar Mills Limited Dharmapuri 2,000
Subramaniya Siva Coop. Sugar Mills Limited Dharmapuri 2,500
Cheyyar Coop. Sugar Mills Limited Tiruvannamalai 2,500
Kallakurichi -I Coop. Sugar Mills Limited,
Moongilthuraipattu Viluppuram 2,500
Tiruttani Coop. Sugar Mills Limited, Tiruvalangadu Thiruvallur 2,500
NPKRR Coop. Sugar Mills Limited, Thalainayar Nagapattinam 3,500
Gomuki (Kallakurichi-II) Coop. Sugar Mills Limited,
Kallakurichi Viluppuram 2,500
M.R. Krishnamurthy Coop. Sugar Mills Limited,
Chidambaram Cuddalore 2,500
Salem Coop. Sugar Mills Limited Namakkal 2,500
Chengalrayan Coop. Sugar Mills Limited, Periyasevalai Viluppuram 3,000
Public Sector
Arignar Anna Sugar Mills, Kurungulam Thanjavur 2,500
Perambalur Sugar Mills Limited, Eraiyur Perambalur 3,000
Private Sector
Bannari Amman Sugars Limited, Erode 4,000
Sakthi Sugars Limited (Unit IV) Erode 9,000
Sakthi Sugars (Unit IV) Erode 3,500
EID Parry Cuddalore 5,000
EID Parry Karur 5,000
EID Parry Trichy 2,500
EID Parry Pudukottai 4,000
Kothari Sugars & Chemicals Trichy 6,400
Thiroo Aroonan Sugar Mills Thanjavur 7,500
Dharani Sugars & Chemicals Viluppuram 3,500
Terry Energy Limited Thanjavur NA
Page | 58
Cauvery Sugars
& Chemicals Limited Tiruchirrapali NA
Shri Ambika Sugars Thanjavur NA
Ambica Sugars and Enterprise Limited Cuddalore 5,000
The sugar industry in India is regulated by the Government of India (GoI). The minimum price of raw material,
namely sugarcane, is statutorily fixed by the Central Government on the basis of recommendations made by
Commission for Agricultural Costs & Prices (CACP).The sale of sugar produced by the mills is regulated by the
Central Government through monthly quota fixations. 80% of the sugar produced is allowed to be sold by mills
as free sale quota (free in regard to price and movement) and 20% is allowed to be sold as levy to state
Governments or their nominees at predetermined prices.
The export and import of sugar or raw sugar is also regulated by GoI to ensure sufficient availability of sugar in
the country. The presence of such regulatory constraints in conjunction with fluctuating production levels from
year to year owing to uncertain monsoon performance contribute to the erratic trend in sugar exports and
imports. It is therefore necessary that the potential sugar volumes at Karaikal port are gauged by studying
historical trends for sugar traffic at the ports in the state. The traffic derived from the state ports largely reflects
the EXIM trade of sugar undertaken by sugar mills in the state. Table 6-21 shows the historical sugar traffic
handled at Chennai and VOC ports in 5 years between 2006/07 and 2010/11
Table 7-16 : Sugar volumes at Chennai and VOC ports
Port 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13

Chennai Port 0.22 (E) 0.06 (E) 0.14(I/E) 0.52(I) 0.33(I/E) N.A. N.A.
VOC Port 0.15(E) 0.38(E) 0.33(E) 0.62(I) 0.09(E) 0.27(E) 0.30(E)
Total 0.37 0.44 0.47 1.14 0.42 - -
I= Import, E=Export and I/E= Import & Export
As noted above, sugar exports fluctuate widely from year to year, with imports being required in
some years. Besides, sugar from central Tamil Nadu is also routed through Chennai and VOC ports,
either because of considerations of distance between port and sugar mill, or long standing
associations between mill and port. For example, Bannari Amman mills in Erode district route their
sugar traffic through Tuticorin as their plant is located closer to Tuticorin than Karaikal or Chennai.
The central and western Tamil Nadu contributes over 80% of total sugar production in the state. Hence a
significant proportion of the sugar exports could be routed through Karaikal. As per market information,
Page | 59
Karaikal port already handles considerable volumes of raw sugar as well as processed sugar since its inception.
Table below shows sugar volumes handled by Karaikal port since its inception.
Table 7-17 : Sugar volumes at Karaikal port
2009/10 2010/11 2011/12 2012/13
Karaikal 400000 700000 800000 1000000

MMTPA MMTPA MMTPA MMTPA
7.2.3.2 SUMMARY
Potential sugar traffic to an alternate Green field Port has been assessed on the basis of the
following key considerations:
Tamil Nadu accounts for about 10% of total sugar production in India
Sugar imports and exports are regulated by GoI and the countrys international sugar trade is
dictated by production and consumption levels prevailing in the country
Historical analysis of the last 5 years sugar traffic at Tamil Nadu ports (Chennai and VOCP)
show erratic trends with a low volume base.
TRAFFIC PROJECTION METHOD
A low growth factor of 3% per annum has been adopted to project hinterland traffic, based on
the historical trends summarized in table above.
Intermittent rises and falls are to be expected in view of fluctuations in sugar production and
demand
Central and western Tamil Nadu account for 80% of total sugar production in Tamil Nadu
Compared to Chennai and VOC Port, an alternate greenfield Port in Central TN will have a
strategic location advantage to capture sugar produced in central and western Tamil Nadu.
The report allocates a share of 25% of central and western Tamil Nadu sugar export, gradually ramping up to
50%, as detailed in table below.
Table 7-18 : Estimated sugar volumes at Karaikal port
Page | 60

Potential
Hinterland 0.100 MMTPA 0.103 MMTPA 0.106 MMTPA 0.109 MMTPA 0.113 MMTPA 0.116 MMTPA 0.119 MMTPA
export volumes
Potential
volumes for
Greenfield port
25%

Hinterland
volumes
Potential
volumes for
greenfield port
@ 35%

Hinterland
volumes
Potential
volumes for
greenfield port
@ 50%
7.2.4 FERTILIZERS
Tamil Nadu has historically been an agricultural state and was India's fifth largest producer of rice
among the states in 2008. Tamil Nadu accounts for 10 per cent in fruits and 6 per cent of vegetable
production in India. Mango and banana are the leading fruit crops in Tamil Nadu accounting for over
87 per cent of the total fruit production in the state. The main vegetables grown are tapioca,
tomato, onion, eggplant, and drumstick. About 60% of the population is engaged in agriculture and
allied activities for their livelihood. 56% of the population engaged in Agriculture and State
Agriculture income accounts for about 13% of the Net Domestic Product of the State. The Gross area
sown is about 56 lakh Hectares. The State government of Tamil Nadu has set a food grain production
target for 2013-14, of 130 lakh Tonnes which is lower than the 136.55 lakh tonnes fixed for the
previous year in view of deficient rainfall for the last couple of years. Area under cultivation
however, there has been a slight increase in the target fixed for the area under cultivation for 2013-
14. The government has projected that 82.60 lakh hectares of land will be cultivated against 81.85
lakh hectares projected in 2012-13.
Page | 61
Figure 7-3: Demand projection of Fertilizers Source WG report for 12th 5 year plan
Figure 7-4: Installed Production Capacity Source Ministry of Fertilizers

India relies largely on imports to meet its fertilizer requirements (and wholly in the case of potash
and phosphates). GoI controls fertilizer import procedures whereby the Department of Fertilizers
estimates import requirements for fertilizer and fertilizer raw material (FRM) selects approved
importers and directs them to arrange fertilizer imports only through ports designated by the
Department of Fertilizers.
While decisions on the choice of import port are generally guided by logistical considerations such as the
proximity of destination markets to the port, the selection process historically favored the Major ports
controlled by the Central Government. Recently however, following aggressive marketing efforts by private
ports to promote their superior port infrastructure (usually more modern, sophisticated and hence more
efficient than those at the Government-owned ports), fertilizer import volumes are also being allocated to
private ports. Specifically, in addition to Chennai port and VOCP, the Karaikal port has also been designated for
handling urea and other fertilizer imports. The import of complex fertilizers is outside the ambit of Government
regulations and such fertilizers are most likely to show increasing trend in future to balance the NPK ratio,
which is skewed towards more than stipulated proportion of nitrogenous fertilizers owing to constant import
and exclusive usage of urea so far.
Page | 62
Figure 7-5: All India Fertilizer Production Volumes
Figure 7-6: Import of Fertilizers as per Ministry of Fertilizer Statistics
Tamil Nadu has many fertilizer plants including Coromandel International Limited (CIL), Madras Fertilizers
Limited and SPIC. The major fertilizer units are shown in Table below.
Table 7-19 : Fertilizer plants in Tamil Nadu
Fertilizer Plant Location Products
Madras Fertilizers
Chennai Urea
Limited
Coromandel Phosphatic
Ennore & Ranipet
International fertilizer
SPIC Ammonia &
Tuticorin
Urea-
Tuticorin Alkali Closed since
Tuticorin
Chemicals last 3 years
Page | 63
Future developmental plans with respect to fertilizer production in the state are as follows:
Coromandel Fertilizers plans to expand capacity at its fertilizer plant at Ennore near Chennai.
SPIC also proposes to install a SSP Unit of 350 TPD in the downstream unit of its existing acid
plants in Tuticorin.
Nagarjuna Fertilizers have plans of setting up a SPP unit in Cuddalore region in the upcoming
PCPIR
Fertilizer imports handled at Tamil Nadu ports are usually destined for Tamil Nadu, Karnataka, Andhra Pradesh,
Kerala and Puducherry, although some recent fertilizer imports have been sent by rakes to Maharashtra, Orissa
and W. Bengal as per the rail transportation subsidy from port/plant upto nearest rake point which is fully
reimbursed on the basis of Railway Receipt (RR) issued by Indian Railways. Ports along the lower east coast
that handle fertilizers are Chennai, VOCP and Karaikal. Besides, Chennai port and VOCP handle FRM - rock
phosphate, sulphur, ammonia and phosphoric acid for fertilizer plants located in their proximity. The table
shows fertilizer and FRM volumes handled at Chennai port and VOCP between 2005 to 2012.
Table 7-20 Fertilizer & FRM traffic at Chennai port and VOCP
Year 2005 -2006 2006 -2007 2007 -2008 2008 -2009 2009 -2010 2010 -2011 2011 -2012
Fertilizers
Chennai 0.70 MMTPA 0.65 MMTPA 0.59 MMTPA 0.52 MMTPA 0.36 MMTPA 0.43 MMTPA 0.35 MMTPA
VOCP 0.48 MMTPA 0.68 MMTPA 1.09 MMTPA 1.15 MMTPA 1.22 MMTPA 1.17 MMTPA 1.11 MMTPA
Total 1.18 MMTPA 1.33 MMTPA 1.68 MMTPA 1.67 MMTPA 1.58 MMTPA 1.60 MMTPA 1.46 MMTPA
FRM
The historic trends show an erratic pattern of fertilizer and FRM volumes handled at Chennai port
and VOCP with overall annual volumes ranging between 1.5 Mt to 1.7 Mt for fertilizers and 0.95 Mt
to 1.2 Mt for FRM over the last 5 years. The erratic import volumes reflect the dependence of Indian
agriculture on the uncertain performance of the monsoon from year to year.
Import of complex fertilizers like DAP, NPK, etc. is expected to gain impetus as the GoI has
consciously pursued efforts in recent years to balance the skewed NPK ratio, which is more titled
towards nitrogenous contents The import of complex fertilizers does not require approval of the
central government unlike other basic fertilizers and hence is likely to witness healthy growth for
future.
In consideration of the above, an estimate of attracting Fertilizer cargoes to a new Greenfield facility
has been made along with FRM requirement which which is likely due to a Fertilizer plants likely to
Page | 64
be developed in the proposed PCIR in the Cuddalore District. The traffic forecasts have been made
on the following basis:
Fertilizer imports are likely to grow in line with agricultural production as raw materials for
phosphatic and potash fertilizers will continue to be imported to meet domestic demand
The potential for re-routable FRM is on basis of any new plant to be developed in the
proposed PCIPR at Cuddalore.
Hinterland volumes are estimated to grow at 3% p.a. over the horizon period - this accounts
for estimated growth in fertilizer demand at 3% at the all-India level for the horizon period, in
line with the projected growth in agricultural production
Intermittent rises or falls in fertilizer volumes are expected depending upon the performance
of the monsoon from year to year
Table 7-21 : Estimated fertilizer volumes at Greenfield Port

Tamil Nadu Central
Hinterland
Finished Fertilizers 1.50 MMTPA 1.55 MMTPA 1.59 MMTPA 1.64 MMTPA 1.69 MMTPA 1.74 MMTPA 1.79 MMTPA
& FRM import
volumes
Potential volumes
for Greenfield Port 0.75 MMTPA 0.77 MMTPA 0.80 MMTPA 0.82 MMTPA 0.84 MMTPA 0.87 MMTPA 0.90 MMTPA
@ 50%

Tamil Nadu Central
Hinterland
& FRM import
volumes
Potential volumes
@ 50%

Tamil Nadu Central
Hinterland
& FRM import
volumes
Potential volumes
@ 50%
7.2.5 PETROCHEMICALS
The state is embarking upon large scale developmental plans towards its evolution as a major
Page | 65
petrochemical hub along the eastern coast. The relevant major plans proposed or under
implementation are described below:
7.2.5.1 PETROLEUM, CHEMICALS AND PETROCHEMICALS INVESTMENT REGION (PCPIR)

In accordance with the policy announced by GoI for establishing Petroleum Chemicals and Petrochemicals
Investment Regions (PCPIR), the Government of Tamil Nadu has forwarded a proposal for setting up a PCPIR
covering Cuddalore and Nagapattinam districts. The Petroleum Chemicals and Petrochemicals Investment
Region (PCPIR) proposed to be set up in Cuddalore and Nagapattinam districts has also been cleared by the
Union Cabinet in the year 2012 and has been projected to attract a total investment of about INR 92,000
Crores.
The proposed PCPIR would be a specifically delineated investment region with an area of around 250
kilometers to accommodate manufacturing facilities for domestic and export-led production in petroleum,
chemicals and petrochemicals, along with the associated services and infrastructure. Nagarjuna Oil Corporation
Limited (NOCL) is proposed as the anchor tenant for the Cuddalore- Nagapattinam PCPIR.
The Central Government has approved the proposal for the proposed PCPIR along the Cuddalore -
Nagapattinam belt in July 2012. However as of this writing, ascertaining scale of developments at the
proposed PCPIR and the companies therein is difficult. At a future date, the industries which will be
developed will require a new Greenfield facility.
The state has also forwarded a preliminary concept note to GoI on a PCPIR in the Ramanathapuram
district. This PCPIR development is likely to benefit VOC Port the most owing to its proximity.
7.2.5.2 NAGARJUNA OIL CORPORATION LIMITED PETROLEUM REFINERY CUM PORT PROJECT
Nagarjuna Group, through its subsidiary, the Nagarjuna Oil Corporation (NOCL) is in the process of
developing a 6 MTPA petroleum refinery at Thiruchopuram in Cuddalore district. NOCL plans to
handle it crude oil import and POL EXIM trade through Thiruchopuram port being developed by
Cuddalore port Company Private limited, an SPV between promotors of Kakinada SeaPorts Pvt. Ltd
and the Nagarjuna Group.
As on December 2011, NOCL had completed around 50% of the refinery project work after which a
Cyclonic storm Thane hit the project and captive port site severely affecting the project activities
and thereafter, the project has made no progress.
Page | 66
To overcome resultant time and cost overruns, the company is working on sourcing additional
infusion of funds are required by attracting other investors such as Indian Oil Corporation Limited,
Oil & Natural Gas Corporation Limited (ONGC) etc.
However, due to the set back of the cyclonic storm and resultant delays leading to escalating project
costs and a lack of funds, the project is considered unviable at 6 MTPA level and it is now being
proposed to be developed as a 12 MTPA Refinery cum Port Project.
Since this Port project for import and export of liquid cargoes is yet to be commissioned and is likely,
it is a potential project whose cargoes can be handled at a common Greenfield Port facility which
could be developed in the region. The Crude oil potential can be considered at 6 MTPA and product
exports (MS, HSD, DO, FO) can cumulatively be put at about 0.75 MTPA.
7.2.5.3 OTHER PROSPECTIVE LIQUID BULK CARGO SOUR CES

Special arrangements made through major PSUs like BP, HPCL, IOCL, for setting up their refineries
near the region in the proposed PCPIR and handling of crude and other refinery products through
the port can be potential source of traffic. Such strategic tie-ups can generate considerable volumes
of crude oil import and refinery products export traffic however these quanta cannot be accurately
estimated.
7.2.5.4 OTHER CHEMICALS

Small or intermittent volumes of other chemicals like inorganic chemicals, etc. can be included in the
potential traffic but the quantum is likely to be limited.
It is the development of the PCPIR which is likely to benefit a new Greenfield facility. While the
proposed industries to be developed cannot be accurately ascertained at this stage and as such
quantifying volumes on confirmed plans by companies other than Nagarjuna Oil Corporation Limited
(anchor developer for proposed PCPIR) is not available as yet. However, a minimal amount of other
cargoes can be expected at the new facility.
Accordingly, the potential volumes for Liquid cargoes, assuming that industries will be developed in the
proposed PCPIR have been evaluated. Additionally, in the event an Oil refinery is proposed in the PCPIR region
(or) the proposed NOCL refinery cargoes can be handled at the new Greenfield facility, a separate projection
has been made for liquid petrochemicals and projected in table below.
Page | 67
Table 7-22 : Estimated petrochemical products volumes at Greenfield Port

Potential
Petrochemical
volumes for
Greenfield facility
Potential volumes
if NOCL or another
Oil Refinery EXIM 0.00 MMTPA 0.00 MMTPA 3.00 MMTPA 6.00 MMTPA 9.00 MMTPA 9.00 MMTPA 9.00 MMTPA
developed in PCPIR
is also handled

Potential
Petrochemical
volumes for
Greenfield facility
Potential volumes
if NOCL or another
developed in PCPIR
is also handled

Potential
Petrochemical
volumes for
Greenfield facility
Potential volumes
if NOCL or another
developed in PCPIR
is also handled
7.2.6 VEGETABLE OILS

India is the largest producer of oilseeds in the world and the oilseed sector occupies an important
position in the countrys economy. The country accounts for 12-15 per cent of global oilseeds area,
6-7 per cent of vegetable oils production, and 9-10 per cent of the total edible oils consumption. The
domestic demand for vegetable oils and fats has been rising rapidly, at the rate of 6 per cent per
annum, but our domestic output has been increasing at just about 2 per cent per annum.
In India, the average yields of most oilseeds are extremely low as compared to those other countries
of the world. The cultivation of oilseeds in India is in high risk regions where there are uncertain
returns on the investments. Although Tamil Nadu is one of the major oil seed producers in India, it
obtains almost half of its edible oil needs from other parts of India and from overseas imports. It
consumes only 10.5 kg of oil per capita annually against the World Health Organization (WHO) norm
Page | 68
of 17.9 kg per capita. Traditionally, the people of Tamil Nadu use groundnut oil, gingili oil and
coconut oil for cooking. In recent times, they have started using cottonseed oil, sunflower oil, rice
bran oil and imported oils such as palmolein. Oil seed (principally groundnut, sunflower and castor)
accounts for about 15% of the gross cropped area. Tamil Nadu has a large number of oil mills,
concentrated in Chennai, Coimbatore, Erode, Salem, Trichy, Madurai and Tuticorin districts. These
mills mainly refine gingili oil, coconut oil, groundnut oil, sunflower oil and refined oils. While gingili,
coconut, groundnut and sunflower are generally sourced within India, palm oil and soy oil are
imported. Due to the large concentration of oil refineries near Chennai, that port has handled most
of the edible oil imports (>1 Mt in the last fiscal year).
India relies heavily on imports to meet over 50% of domestic edible oil requirements and is one of
the world's largest importers of vegetable oils, buying palm oil from Indonesia and Malaysia and
small quantities of soya oil from Argentina and Brazil. Palm, soy and rapeseed (mustard) together
account for 73% of edible oil consumption in India, with palm oil accounting for 44% of total
consumption.
Indias edible oil imports have more than doubled in the last four years to over 8.8 Mt in 2010/2011
oil year, and it is expected that imports will grow at about 6% per annum. The growth in edible oil
imports is attributed to:
Increase in domestic demand for edible oil
Near stagnant oilseeds production
Cultivation of oilseeds in under-irrigated areas, which results in low crop yield.
Indian edible oils imports fluctuate, depending on the quantum of indigenous production and variations in
demand. Edible oil imports at Chennai and VOCP over the last 5 years (Table 6-28) have been analysed as these
ports have handled imports for oil refiners across the state and therefore provide a clear perspective on historic
oil import patterns.
Table 7-23 : Vegetable oil volumes at Chennai port and VOCP- Last 5 years
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Year 2006 -2007 2007 -2008 2008 -2009 2009 -2010 2010 -2011 2011 -2012 2012 -2013
Edible Oil
Chennai port handles more than 1 MTPA of edible oils owing to the concentration of large number
of oil refineries in its proximity. The cargoes for central TN can be diverted to an extent of about 15%
of the total traffic handled at Tamil Nadu ports until any industry is set up at the PCIPR. The factors
considered in arriving at this estimate are:
Proposed industries to be developed at the Cuddalore PCIPR
Hinterland volumes are estimated to grow at 5% per annum - domestic demand of vegetable
oils is expected to increase due to a growing population, increasing per capita consumption
and rise in per capita income, but this is unlikely to be met by a proportionate increase in
domestic production
Chennai port and VOC Port largely handle imports for the vegetable oil refineries in Tamil
Nadu.
while Chennai is likely to retain its share due to its proximity to a large number of refineries,
some cargo from VOC Port, which currently handles edible oil imports for central and
western Tamil Nadu can be diverted.
In view of the central location of a new greenfield facility and the congestions at Chennai & VOC Port and
possibility of industries to be set up at the proposed PCPIR in Cuddalore District, a modest estimate of
Vegetable oil imports can be accounted from the year 2017.
Table 7-24 : Estimated edible oil volumes at Karaikal port
Page | 70

Potential
Hinterland volumes
Potential volumes
for greenfield port 0.00 MMTPA 0.23 MMTPA 0.24 MMTPA 0.25 MMTPA 0.26 MMTPA 0.27 MMTPA 0.29 MMTPA
@ 15%

Hinterland volumes 2.01 MMTPA 2.11 MMTPA 2.22 MMTPA 2.33 MMTPA 2.44 MMTPA 2.57 MMTPA 2.69 MMTPA
Potential volumes
@ 15%

Hinterland volumes 2.83 MMTPA 2.97 MMTPA 3.12 MMTPA 3.27 MMTPA 3.44 MMTPA 3.61 MMTPA 3.79 MMTPA
Potential volumes
@ 15%
7.2.7 LNG
The global LNG market is dynamic and is constantly evolving amidst the interplay of changing
demand patterns, prices of competing fuels, supply capacities and diverse market structures and
regulatory mechanisms across countries. This is reflected in the substantial volatility observed in
prices and costs incurred across the value chain, which can vary with time and geography.
Figure 7-7: Global Gas price movements as per World LNG Report 2013 / Bloomberg & BCG Analysis
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LNG at present contributes 2.4 percent to the world's fuel mix. Asia is the largest consumer of LNG,
with strong traditional consumers in Japan, Korea and Taiwan and emerging powerhouses in China
and India. The rapid commercial exploitation of shale gas has reduced the dependence of North
America on LNG imports and can potentially transform the region into a net exporter. The economic
downturn and the availability of Russian piped gas have contributed to the slow growth of LNG in
Europe. Future growth in LNG consumption is expected to be driven by China, India and niche
markets in Latin America and the Middle East. The current LNG supply base is limited to 17 nations
with Qatar cornering 33 percent of the market share; however the supply base is bound to broaden
as new suppliers, particularly in East Africa, come to the fore. Moreover, substantial additional
capacity is expected to come from Australia in the medium term when a number of projects that are
currently in the development stage go onstream. Thus, the global LNG market is expected to be
supply constrained only until 2017, after which supply is expected to exceed demand.
Figure 7-8: Growth in Global LNG Trade volumes as per World LNG Report 2013 & BCG Analysis
7.2.7.1 LNG DEMAND

The development of LNG has driven the globalisation of natural gas, connecting far flung sources to
distant markets. Today 24 percent of the global energy supply is provided by natural gas. LNG trade
at 237.70 MMTPA contributes to 32 percent of the total natural gas trade in the world. Figure below
shows the status of LNG demand in the world.
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Figure 7-9: Global LNG Demand as per World LNG Report 2013 & BCG Analysis
7.2.7.2 LNG SCENARIO IN INDIA

At present, India is the world's fourth largest consumer of energy, consuming about 660.00 MTOE
(Million Tons Oil equivalent) per year, driven primarily by an increase in energy consumption in
tandem with the rapid economic growth of the last few decades. On a per capita basis however,
India's average consumption is 0.80 MTOE, substantially lower than the global average of 1.80 and
far below the consumption norms in developed economies. In the economic development lifecycle,
India is currently at the 'take off' stage and will need to sustain rapid rates of growth for the coming
few decades to improve the living standards of its citizens. Thus, there is substantial room for further
growth in energy consumption as shown in figure 4.1. India's energy demand is expected to increase
to 1,120.00 MTOE by 203132.
LNG has become important towards satisfying India's growing energy needs. Natural gas has become
increasingly crucial to India's energy security driven by increased demand due to a growing
economy, a need to diversify from traditional sources of energy and compliance to more stringent
environmental norms. Power, fertilizer, city gas distribution and refineries are the biggest consumers
of natural gas. However, India's domestic reserves of natural gas and planned pipeline imports are
unlikely to suffice for its requirement; imported LNG will be critical to overcome the structural gap
between gas demand and domestic production. This is borne out by the rapidly increasing LNG
consumption in the country which currently stands at 41.60 MMSCMD, almost 32 percent of the
total natural gas consumption. The demand for LNG is determined by its cost competitiveness with
Page | 73
respect to the alternative fuels, mainly coal, oil based fuels and domestic natural gas in key end use
sectors. India's relatively abundant coal reserves make it cheaper for base load power generation
than natural gas. Similarly, preferential allocation of domestic gas at low prices to priority sectors
like power and fertilizer limit the addressable market for LNG, though the overall size of the
opportunity still remains large. There still remains substantial demand from other consuming sectors
like refineries, city gas distribution, and iron & steel that are underserved by domestic gas. This
dynamic will be substantially altered if the recommendations of the Rangarajan Committee are
accepted and prices of domestic gas are increased substantially, boosting the competitiveness of
LNG.
India's natural gas demand is expected to far outstrip its domestic and pipeline gas supply. This gap,
projected to be 131.00 MMTPA by 202930, represents a huge opportunity for LNG suppliers and
energy companies looking to enter this sector. However, in order to tap this opportunity, significant
long term planning and actions need to be undertaken to develop a robust and vibrant domestic
LNG market. These actions span the length of the LNG value chain, right from tying up with new
sources and long term contracts, to developing regasification infrastructure (land based or floating)
for additional supplies, to developing viable pricing and contracting structures, so as to provide a
compelling value proposition to end consumers. These actions will also need to be supplemented
with the creation of requisite capabilities in oil and gas companies and the establishment of a clear
and enabling regulatory framework that encourages competition, while at the same time assures
investors of fair returns.
As a fuel, gas is underrepresented in India's energy mix, accounting for a mere 12 percent of primary
energy consumption, well below the world average of 23 percent. The Planning Commission has an
ambitious target of increasing the share of natural gas to 20 percent from the current levels by 2025.
The bulk of this shift towards a gas economy will come from four consuming sectors: power,
fertilizers, industrial (petrochemicals, refining, steel etc) and City Gas Distribution (CGD). It is
estimated that by 202930, these four sectors will account for 746 MMSCMD of gas demand. The
capacity of domestic gas production to serve this demand is limited and there is substantial
uncertainty around transnational pipelines. By implication, LNG will play a critical part in
establishing the foundation of India's aspirational gas economy, and by extension, its energy security
endeavour. In this section, we will investigate the gas demand and supply in detail and identify the
LNG opportunity.
Page | 74
7.2.7.3 TAMIL NADU SCENARIO

TNs energy needs being primarily met only through coal and petroleum, the Chief Minister of Tamil
Nadu has in the TN Vision 2023 planned for at least two LNG terminals with capacities not below 5-6
million tonnes per annum. Several automobile companies in Hosur, Salem, Steel and chemical
industries in Mettur have submitted their demands for gas to GAIL. Industries alone have sought
9.615 mmscmd (million standard cubic metres per day). The Government of Tamil Nadu has
assessed its total fuel requirement as 60 BCM of gas equivalent for the year 2015. The requirement
of natural gas is 15 BCM or about 48 MMSCMD.
ONGC estimates an unmet demand of 21.5 million standard cubic meters per day (mmscmd) in the
Ennore catchment area which will rise to 41.7 mmscmd in 10 years. Overall in the southern India, it
sees an unmet demand of about 90 mmscmd. Power and fertilizer constitute the major sectors in
the state which require NG/LNG and around Ennore the need is estimated at 12-14 mmscmd of gas
which is equivalent to 2.5 million tonnes of LNG.
In order to meet the growing demand for LNG for generation of electricity and as a feedstock to
fertilizers, a MoU was signed between Tamil Nadu Industrial Development Corporation (TIDCO) and
Indian Oil Company (IOC) in March 2012 for construction of an LNG terminal at Kamarajar Port. The
proposed terminal is to have a capacity of 5 MTPA. The terminal is likely to be commissioned by
2015/16. IOC has undertaken front-end engineering design and environment impact assessment.
Figure 7-10 : Route map for Kochi- Mangalore- Bangalore LNG pipleine
Page | 75
The LNG pipeline is being laid by GAIL (India) Ltd between Kochi in Kerala and Bangalore in
Karnataka of which about 310 km pipeline is to traverse through the state. Note that a pipeline
section from this corridor concerns gas movement between Salem and Cuddalore with a carrying
capacity of 6 MCM of gas per day. Besides, GAIL plans to set up a floating storage degasification unit
in South Coastal Tamil Nadu at a cost of Rs. 3,400 crore.
However, as of this report writing, GAIL (India) Ltd is locked in a dispute with the Tamil Nadu
Government over the proposed 310-km-long natural gas pipeline that will pass through seven
districts in the state i.e. Coimbatore, Tirupur, Salem, Erode, Namakkal, Dharmapuri and Krishnagiri
districts. The dispute is on the issue that present alignment would affect the lives and livelihood of
about 5500 small farmers. As per reports, it is understood that the width of the area covered
under the Right of use is about 66 feet which would be a substantial portion of the farm land.
This would allegedly make the agricultural operation commercially unviable making the land
virtually worthless.
7.2.7.4 LNG FOR POWER GENERATION

The advantage of LNG based power plants is that they are cleaner, efficient and can be built in a
shorter time than coal. A new LNG based power plant can be set up in 28-30 months whereas
conventional source has gestation period from 48-84 months. Tamil Nadu is facing acute power
shortage with short supply to an extent of 4000 MW. Due to unavailability of coal for the thermal
power plants in the state, the government is looking for alternative sources like LNG. In this context,
the Tamil Nadu government is exploring the prospect of two 500MW power plants being fuelled by
the LNG; one near the pipeline being laid by GAIL and the other near the LNG terminal in Ennore.
7.2.7.5 LNG FOR FERTILIZERS

The present fertilizer policy of India is aimed at increasing the use of NG/LNG as a feedstock/fuel as
production of urea using NG as feedstock is energy efficient and cheaper. The policy is also aimed at
future conversion of naphtha based units to NG/LNG. The Report of the Working Group on Fertilizer
Industry for the Twelfth Plan estimates that the total requirement of natural gas for production of
fertiliser including conversion of non-gas based plants to gas based ones would be more than 100
MMSCMD. Tamil Nadu has two major fertilizer plants Madras Fertilizers Limited and Southern
Petrochemicals Industries Corporation Limited The plants use naphtha/fuel oil as feedstock to
produce urea and DAP. But due to increasing prices of naphtha, the plants are struggling for survival
and in need of natural gas.
Page | 76
7.2.7.6 PROSPECTS FOR DEVELOPING LNG TERMINAL AT GREENFIELD PORT

Tamil Nadu Vision 2023 document mentions developing two supercritical and other power projects
of cumulative 20,000 MW capacity to the State Electricity Grid and also Gas grid connecting ten
large cities. At the same time, the state is also aiming at bringing down dependence on coal and
petroleum products as fuel and enable fuel self-sufficiency for industrial development.
In order to augment the power generation capacity, the state government is also examining the
prospects of establishing gas based power plants using the gas sourced from the proposed LNG
Terminal being set by the TIDCO Indian Oil Corporation Joint Venture at Ennore and the LNG
terminal at Cochin through proposed gas pipe line being erected by GAIL.
Although the states major focus is on wind energy generation, the high fluctuations associated with
it have led to further reinforcement in the utility of gas based plants. Also, with increasing
environmental concerns due to adverse impact on environment from the coal based power plants,
the state will be attracted towards cleaner and greener fuel, thereby increasing the demand for
Natural Gas and Liquefied Natural Gas.
Thus, there is an unmet demand in the state for NG/LNG which is going to increase in the future. In
fact, Tamil Nadu needs two LNG terminals each of about 5 MTPA. One at Ennore is under
construction. The gap for the other can be filled up by developing another Terminal at the proposed
Greenfield Port between Chennai & Nagapattinam which can cater to requirements of Central Tamil
Nadu. However to quantify the exact requirements and projecting volumes, a detailed study will
require to be undertaken.
7.2.8 CONTAINERS
India has been witnessing a impressive growth in container traffic year on year. The container traffic in the
Indian Ports has increased at the rate of 8.37% in the last 5 years except in the year 2009 which witnessed a
negative growth due to world-wide recession and financial crisis and while there was slight growth in 2012
2013 with steady state prevailing in 2013 14.
The few Green shoots now being seen in the developed markets give the tangible trend that the container
volumes will once again register upward growth.
Page | 77
7.2.8.1 FACTORS INFLUENCING GROWTH

Impact of GDP:
As per UN ESCAP, the underlying assumption that the structural relationship between growth in Container
Trade and economic growth will remain basically unchanged. This economic relationship between GDP & Trade
volumes is considered useful in forecasting the development of container trade. There are a wide range of
factors that impact on the volumes of container imports & exports, however, for forecasting purposes, the
relationship is considered simple and linear between Container volumes and GDP.
Table 7-25: Growth Rate and estimated forecast for Container Trade: 1980 ~ 2015
Container Volumes Compound average growth rate over

Year
(Million TEU) previous period
1980 13.5 -
1990 28.7 7.80%
2000 68.7 9.10%
2010 138.9 7.30%
2015 177.6 5.00%
Source: UN - ESCAP
PENETRATION OF CONTAINERS IN INDIAN SUB-CONTINENT
Container penetration in India is estimated to have reached 68% in 2011 and witnessed a rising trend (Source:
Drewry Maritime Advisors). They have further projected that Container penetration in India could reach 72% by
the year 2020. Another report by CRISIL has estimated the Container penetration to rise to 75% for the same
period.
CHANGING TRENDS IN TRADE ROUTES

As per Drewry Maritime Advisors, Indias share with East has grown at a CAGR of 26% between 2001 & 2011.
This refers to increasing trade flows between India and trading partners in Far East, SE Asia, Australia and
Pacific Coast of N and S America, for which ports on Indias East Coast are closer. This augurs well for the
proposed port as it is located to nearer to International Shipping Lanes.
ORGANIC GROWTH
Several Industries located in central Tamil Nadu as well as Cargo clusters within the ports hinterland have good
reason to benefit from the end of the ongoing recession. Additionally, with the proposed introduction of GST,
intra India trade is expected to increase trade of which several steps to utilize the container mode have begun
to bear fruit (eg: FCIs movement of maize from east to west coast. Overall impact will be an increase in
containerized volumes in both Exim and domestic.
Page | 78
CONTAINER TRAFFIC IN INDIAN PORTS PAST DATA
The container traffic handled in Indian Ports during 1995 to 2006 and from 2007 to 2012 are shown
in Tables below.
Table 7-26: Container handled in Major ports 1995 to 2006
Name of
S No CONTAINER TRAFFIC HANDLED (FIGURES IN 000s)
Port
1999-
1995 - 96 1996 - 97 1997 - 98 1998 - 99 2000 01 2001 02 2002 03 2003 -04 2004-05 2005-06
2000
1 Kolkata 1814 1951 2122 1971 2117 2011 1411 1498 1746 2357 3234
121 133 141 132 147 138 98 106 123 159 203
2 Haldia 51 118 381 427 434 806 1523 1850 2275 2029 1911
4 9 29 28 28 51 93 117 137 128 110
3 Paradip 1 8 7 33 60 31 45
2 4 2 4
4 Vizag. 94 166 146 172 262 278 320 296 277 635 630
8 13 13 14 20 20 22 22 20 45 47
5 Ennore 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0
6 Chennai 2308 2564 3002 2942 3977 5769 5857 7218 8628 9864 11757
227 256 293 284 322 352 344 425 539 617 735
6 Tuticorin 758 901 1115 1213 1633 1569 2198 2301 2687 3205 3428
69 89 102 100 137 157 214 213 254 307 321
7 Cochin 796 967 1056 977 1247 1790 1899 2070 2125 2315 2488
96 112 122 129 130 143 152 166 170 185 203
New Man 20 37 84 96 136 149
8
galore 2 4 6 7 9 10
Mormuga
9 19 34 30 37 50 44 58 90 103 117 105
o
2 3 3 3 4 4 6 9 10 10 9
10 Mumbai 6748 7632 8098 7098 6157 4364 3684 3143 2816 2571 2145
518 583 601 509 429 321 254 213 197 219 156
Jawaharla
11 4069 5078 6050 8029 10679 14277 18484 22864 27785 28747 33777
l Nehru
339 423 504 669 889 1189 1573 1930 2269 2371 2667
12 Kandla 961 1179 1299 915 1134 1286 1752 2225 2404 2754 2311
65 77 84 64 79 91 126 157 170 181 148
Total 17618 20590 23299 23782 27690 32222 37230 43672 51002 54761 61980
1449 1698 1891 1932 2185 2468 2886 3366 3930 4233 4613*
Note1: Figures in italics represent no. of TEU handled (in thousand). Growth rate in last decade is 31.84 % and over five year
period 46.49%
* The figure does not include the traffic handled in the recently developed private ports of Mundra & Pipavav
which is about 0.50 m TEU in the year 2005.
Table 7-27: Container handled in Indian ports (Sector-Wise) 2007 to 2013
Page | 79
SL.NO. PORT 2007 2008 2009 2010 2011 2012 2013
1 KANDLA PORT 1,78,496 1,53,571 1,30,768 1,55,717 1,67,398 1,39,233 61,769

2 MUNDRA PORT 6,80,221 8,40,656 8,63,276 11,75,211 14,09,789 16,89,952 21,61,404
3 PIPAVAV 1,84,620 1,92,694 3,21,400 4,66,138 6,10,219 5,70,482 6,61,799
INDIA: NORTH-WESTERN PORTS 10,43,337 11,86,921 13,15,444 17,97,066 21,87,406 23,99,667 28,84,972
4 MUMBAI PORT 1,11,000 1,13,613 54,810 66,568 60,729 58,216 41,543

5 JNPT 38,87,714 41,75,805 38,55,085 42,71,627 43,08,469 42,46,836 41,02,837
6 MARMAGOA 10,733 11,688 11,858 14,201 14,201 2,022
7 NEW MANGALORE 10,000 28,555 31,456 40,158 45,009 45,219 46,393
8 KOCHI PORT 24,267 2,69,838 2,78,860 3,14,720 3,30,559 3,28,735 3,43,930
INDIA: WESTERN PORTS 40,32,981 45,98,544 42,31,899 47,04,931 47,58,967 46,93,207 45,36,725
9 TUTICORIN PORT 4,32,089 4,55,061 4,26,184 4,52,950 4,40,004 4,61,011 4,93,650

10 KARAIKAL - - - - 546 581 802
11 CHENNAI PORT 10,54,124 11,99,619 11,33,345 14,45,390 15,79,835 15,46,552 14,85,266
12 KATTUPALLI COMMENCED IN 2013 4,677
13 KRISHNAPATNAM - - - - 16,236 15,289 48,502
INDIA: SOUTHERN PORTS 14,86,213 16,54,680 15,59,529 18,98,340 20,36,621 20,23,433 20,32,897
14 VIZAG 63,000 84,751 94,513 1,26,340 2,12,898 2,50,345 2,62,611

15 PARADIP - - - 3,431 5,971 12,719 5,397
16 KOLKATTA 2,82,349 3,06,888 3,56,208 3,70,082 4,09,476 4,47,424 4,59,095
17 HALDIA 1,13,000 1,37,215 1,12,016 1,44,913 1,43,769 1,39,550 1,20,481
INDIA: EASTERN PORTS 4,58,349 5,28,854 5,62,737 6,44,766 7,72,114 8,50,038 8,47,584
ALL INDIA TOTAL 70,20,880 79,68,999 76,69,609 90,45,103 97,55,108 99,66,345 1,03,02,178
YOY 948119 -299390 1375494 7,10,005 211237 335833
% Increase / Decrease 13.50 % -3.76 % 17.93 % 7.85 % 2.17 % 3.37 %
Source: IPA, Private ports websites ,industry sources

7.2.8.2 SHARE OF INDIAN PORTS - REGION WISE
The share of the proposed new Greenfield port has been derived from the All India container traffic.
The present share of container traffic of the Indian Ports has been analyzed and shown in Tables
above as:
INDIA: NORTH-WESTERN PORTS
INDIA: WESTERN PORTS
INDIA: SOUTHERN PORTS
INDIA: EASTERN PORTS
For the year 2013, India: Western-Ports had the highest market share with 44.03% with JNPT alone
accounting to 90.44% of All-India traffic.
India: North-Western Ports accounted for 28.01% of All-India traffic with Mundra Port overtaking
Page | 80
Chennai as the second largest container Port of the Country.
India: Southern Ports have accounted for 19.73% of All-India traffic.
All-India volumes rose by a CAGR of 5.63% in the last 7 years including a negative growth in 2009
when global trade was impacted by recession & financial crisis.
All-India traffic volumes have also grown by 3.37% YOY between 2012 & 2013
7.2.8.3 CONTAINER TRAFFIC FO RECAST
The container traffic forecast for Indian Ports has been derived from:
Average growth rate of GDP achieved in the 11th Five-Year Plan
GDP Growth rate in the approach paper for the 12th Five-Year Plan
The 12th Five-year plan proposes a target of 8%.
As per data available in the Planning Commission, an average GDP growth rate of 7.9% was
achieved (sometimes peaking to 9%) during the 11th Five-Year Plan.
The average GDP growth rate achieved in the 11th Five Year Plan which is 8.0% can be projected as
the low scenario. The average GDP growth rate of 8.5% is based on the approach paper to the 12 th
Five-Year Plan is taken as nominal scenario and 9.0 % GDP growth rate targeted in the 12th Five-Year
Plan is taken as optimistic scenario.
Sl. No. GDP Growth rate Scenario
1 8.0% (Achieved in the 11th Five-Year Plan) Low Scenario
2 8.5% (Based on approach paper to the 12th Fiver- Nominal Scenario

Year Plan)
3 9% (Growth rate targeted as per the 12th Five Year Optimistic Scenario
Plan)
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7.2.8.4 ALL INDIA CONTAINER TRAFFIC
The All India Traffic forecasts for Containerized cargoes have been presented in Table below. These projections
have been derived on basis of the National Maritime Agenda 2020 projection which have been revised for
actual traffic handled in 2012 & 2013 and extrapolated thereon using the same principles employed in the
Ministrys report.
Table 7-28 : All India Container Traffic Projections
Maritime Agenda 2010:2020

Maritime Agenda 2010:2020 Projections basis actual
S.No PERIOD
Projections (Million TEU) performance upto 2013
(Million TEU)
1 2011-12 11.81 9.76
2 2012-13 13.67 9.95
3 2013-14 16.26 11.84
4 2014-15 20.22 14.72
5 2015-16 24.19 17.61
6 2016-17 30.75 22.38
7 2017-18 33.65 24.49
8 2018-19 36.26 26.39
9 2019-20 38.91 28.32
7.2.8.5 CONTAINER TRAFFIC SHARE OF SOUTHERN INDIA PORTS

Table below shows that the share of South India Ports of the All INDIA volumes is varying from 11%
to 22% over the past 5 years. Basis past performance and our future projections, the container traffic
share of Southern India Ports has been assessed basis three scenarios below:
Low Scenario : 15% share
Nominal Scenario : 20% share
Optimistic Scenario : 25% share.
Based on the above assumption, the projected traffic of the South Indian Ports basis the revised all-
India container traffic Projections detailed in Table 3.5 have been presented in Table 3.6 below.
Page | 82
Table 7-29 : Major Container Traffic Share of Southern India Ports
Maritime Agenda 2010:2020

Projections basis actual
S.No PERIOD Southern India Container Terminal share of Traffic (Million TEU)
performance upto 2013
(Million TEU)
Nominal Scenario Optimistic scenario

Low Scenario 15%
20% 25%
1 2011-12 9.76 (actual) 2.03 (actual Traffic)

2 2012-13 9.95 (actual) 2.02 (actual Traffic)
3 2013-14 11.84 1.78 2.37 2.96
4 2014-15 14.72 2.21 2.94 3.68
5 2015-16 17.61 2.64 3.52 4.40
6 2016-17 22.38 3.36 4.48 5.60
7 2017-18 24.49 3.67 4.90 6.12
8 2018-19 26.39 3.96 5.28 6.60
9 2019-20 28.32 4.25 5.66 7.08
The central and western Tamil Nadu hinterland of proposed new Greenfield port contains major cargo centers
engaged in textiles, steel, readymade garments (RMG); these are listed in table below:
Table 7-30 : Major container cargo centres in South India
Cargo centres State Main commodities
Tuticorin Tamil Nadu Chemicals, foodstuff, marine products
Karur Tamil Nadu Textile and made ups
Madurai Tamil Nadu Fabric, yarn and made-ups
Salem Tamil Nadu Steel

Coffee, rock, pharmaceuticals, RMG, auto parts,
Bangalore Karnataka electronics; Auto parts, chemicals, fabric and
yarn, leather, tyres and tubes, metal
Chennai Tamil Nadu scrap
Puducherry Puducherry Chemicals, leather products, electronics
Coimbatore Tamil Nadu Castings and forgings, engineering goods, tea
Tirupur Tamil Nadu RMG
Mangalore Karnataka Auto parts, marine products, wax candles
Chemicals, coir, rice, spices, tea, coffee, marine

Cochin Kerala
products
Chikmagalur/ Hassan Karnataka Coffee
Page | 83
7.2.8.6 CAPACITY EXPANSIONS PLANNED IN SOUTHERN INDIA CONTAINER PORTS

The share of South India Ports which are presently handling containers (Tuticorin, Karaikal,
Krishnapatnam and Chennai-Ennore cluster) and are planning significant expansion capacities in the
near future are given in Table below.
Table 7-31: Traffic & Capacity planned in existing terminals in Chennai Ennore cluster.
Capacity proposed in million TEUs

Actual
Traffic
Name of Terminal Operator
2012 2016-17 2019-20
MTEU
CCTL, Chennai DP World 0.89 1.4 1.4
CITPL, Chennai PSA 0.66 1.5 1.5
Proposed terminal in
TBN - -
JD east Chennai*
Kamarajar Container
Adani - 0.8 1.4
Terminal
Kattupalli L&T 0.0009 1.0 1.0
Total 1.559 3.9 3.9
*Proposed Container Terminal in Chennai port volumes not considered due to lack of clarity in the bidding
decision and connectivity issues involving Elevated Expressway Project. Capacity assessment has been made
only upto 2016-17 based on available information
Page | 84
Table 7-32: Traffic & Capacity planned in other Southern India Terminals
Actual Capacity proposed in million TEUs

Name of Terminal Operator Traffic
2016-17 2018-19
2012
PSA-SICAL, Tuticorin PSA 0.46 0.42 0.42
DBGT, Tuticorin ABG 0.5 0.5
Karaikal MARG 0.0006 0.45 0.45
Krishnapatnam KPPL 0.013 1.2 1.2
Total of other SIP 0.803 2.57 2.57
7.2.8.7 CONTAINER TRAFFIC FO RECAST

While these planned developments are on the anvil, the hinterland for the proposed Greenfield port has been
estimated to be sourced from central Tamil Nadu and South east Karnataka. Importers from this region are
currently compelled to use either Chennai Ennore cluster ports or V.O.C port due to the absence of the
container Terminal in Central Tamil Nadu. Once the Container Terminal in the proposed new Greenfield port
becomes operational, these cargoes would migrate to the new port taking advantage of the cost logistics and
proximity factors. On this basis, it is assumed that container traffic projects for a new Greenfield facility will be
in the region of 200,000 TEUs by 2020.

Potential
0.06 Million TEU 0.12 Million TEU 0.19 Million TEU 0.26 Million TEU 0.33 Million TEU 0.40 Million TEU 0.47 Million TEU
Hinterland volumes
Potential volumes
for greenfield port 0.03 Million TEU 0.06 Million TEU 0.10 Million TEU 0.13 Million TEU 0.17 Million TEU 0.20 Million TEU 0.24 Million TEU
@ 50%

Potential
Hinterland volumes
Potential volumes
@ 50%

Potential
Hinterland volumes
Potential volumes
@ 50%
Page | 85
8 COMPETING PORT FACILITY ANALYSIS IN TAMIL NADU
In addition to Major ports at Chennai, Kamarajar and V.O. Chidambaranar (Tuticorin) Ports, the Govt.
of Tamil Nadu, through its Nodal Agency, the Tamil Nadu Maritime Board, has declared 7
government-owned minor Ports and 17 captive ports in the state. The total of 24 declared minor
Ports come under the purview of the Tamil Nadu Maritime Board, however, of all the Ports, currently
only 3 minor Ports, namely Kattupalli Port, Ennore minor Port located at the northern border of
Tamil Nadu and Cuddalore minor Port in Cuddalore district that are presently functional.
Additionally, the Karaikal Port is a private developed by the MARG group and located in Karaikal. The
Karaikal Port comes under the purview of the Govt. Of Puducherry. The list of potential competing
Ports have been detailed in table below:
Table 8-1: Traffic & Capacity planned in other Southern India Terminals
S.NO PORT ADMINISTRATED TYPE REMARKS
Primarily developed as a shipyard and

L&T private
State Govt. allowed to handle commercial cargoes
01 Kattupalli shipyard cum
TNMB limited to only clean cargoes
port
container/ General cargo
Port primarily created to cater to

Central Govt. Multi
TNEB coal. Also handles General cargo
02 Kamarajar Ministry of commercial
& liquid cargo and in process of
Shipping Port
developing new container terminal
Captive Port developed by

Coromandel Coromandel Fertilizers for import of
State Govt.
03 Ennore International liquid Ammonia only. No
TNMB
captive Port infrastructure except a submarine
pipeline and CALM buoys
Main Pot of Chennai. Surrounded by

Central Govt. Multi congested city with no scope for
04 Chennai Ministry of commercial expansion. Coal & dirty cargoes
Shipping Port handling banned due to pollution
issues. Will likely to convert to
handling only clean container &
Page | 86
general cargoes and Passenger cruise

vessels in the future.
Transshipment Historic Port with ability to handle

and anchorage vessels with draft of 1.5 meters max.
State Govt.
05 Cuddalore Multi No scope for expansion and currently
TNMB
commercial handles occasional cargo through
Port offshore lightering
Multi
commercial Administered by UT of Puducherry.
Puducherry
06 Karaikal private Port Limited area and no room to handle
Govt.
under MARG large volumes estimated in the future
Group
Central Govt. Multi Main Port catering to traffic of

V.O.
07 Ministry of commercial southern and south western Tamil
Chidambaranar
Shipping Port Nadu hinterland and industries
Figure 8-1: shows the locations of competing ports with respect to each other
Page | 87
8.1 OTHER PROPOSED CAPTIVE PORTS
THIRUCHOPURAM PORT
Besides the above active Ports, the license to develop the Thiruchopuram (minor) Port in Cuddalore
District has been accorded to Nagarjuna Oil Corporation (NOCL) as a marine liquid import export
facility for the NOCL refinery to be developed at the location. Thiruchopuram port will be designed
for import of about 12 Million Tons Per annum of Crude oil and for export of about 3 Million Tons per
annum of finished petroleum products to cater to the EXIM requirements of its proposed oil refinery
at Cuddalore.
The proposed plan was to first develop & commission the oil jetties for NOCL product exports /
imports and an SBM for import of crude oil followed by additional jetties for handling coal cargoes for
proposed power plants in the area, Container and General Cargo berths etc.
The waterfront area allotted for Thiruchopuram Port is about 3.7 kilometers long and the northern
limit of the Port is at a distance of about 1400 meters from Cuddalore Port southern limits
The NOCL refinery cum captive port project has been partly developed and is yet to be
commissioned. The project activities are currently stalled post the damage suffered due to the severe
cyclonic storm Thane which hit the project site in December 2011. However, for various reasons
and lack of finances, the Nagarjuna Group has been unable to develop the NOCL refinery cum Port
project. As of this writing the project has been stalled for over 3 years due to a paucity of funds.
Further, due to various delays in commissioning the project, it is possible that the Thiruchopuram
minor Port, may not be allowed to handle any cargo other than the captive liquid (crude & products)
for the NOCL refinery.
The developmental plans for Thiruchopuram port are still not clear as it is linked to the Refinery
Project which is currently stalled.
CUDDALORE PORT
The Cuddalore port was originally established as an anchorage facility during the British rule. The port
is located at Lat 11 42 N Long 79 46 E, about 180 Kms South of Chennai and 25 Kms South of
Puducherry, in the Cuddalore district and situated at the confluence of the rivers Gadilam (Uppanar)
and Paravanar discharging jointly into the Bay of Bengal.
Page | 88
The Port is administrated by Tamil Nadu Maritime Board and has a waterfront length of about 14
kilometers. However, backup area presently available within the Port is limited. Further, access to the
port being only through Cuddalore old town area, is restricted due to dense town habitation &
dwellings.
The Port can presently berth only small barges with a maximum draft of about 2.0 meters. The
foundation level & residual strength for the exiting wharf is such that deepening beyond 3.0 meter
level is presently not possible. The mouth is ineffectively protected by short breakwaters. There is a
bar at the mouth and this severely constrains the movement of even shallow draft vessels across the
bar.
At Cuddalore minor port, ships anchor in midstream at a distance of about a mile from the shore and
cargo is loaded and discharged through lighterage operations. The cargo is then carried to a basin
inside the river mouth to barge loading / unloading jetties. This anchorage is weather dependent and
can be in use for six to eight months a year. This anchorage facility is presently not fully in use and
needs substantial improvements.
Figure 8.2: Google earth image showing Cuddalore port basin
Page | 89
The basin inside the river mouths is very shallow. This basin has few shallow water jetties fit for
berthing fishing vessels or barges. The port was reasonably active in the past (still less than a lakh
tons per year), but due to the poor infrastructure and limitations of the associated township, there
has been erosion of traffic at Cuddalore Port. Presently there is no significant cargo handling at
Cuddalore port. Within Cuddalore Port limits (sea-area) there exists a sea-island tanker terminal
developed for captive use of Chemplast Sanmar & utilized for importing Vinyl Chloride Monomer
(VCM) for their Cuddalore based PVC manufacturing plant. Understand that TNMB is in the process of
selecting a consultant to assess the feasibility of developing this Port as a multi-user Port facility for
handling multiple cargoes.
To the south of the Silambimangalam Port, there exist six non-major captive Port facilities (currently
inoperative) under purview of the Tamil Nadu Maritime Board (TNMB) These are Parangipettai, Sindya &
Empee proposed captive facility, Kaveri, Vanagiri, Thirukadaiyur & Tharangambadi captive Ports. A brief
overview of these facilities has been presented below followed by a google earth image to provide a pictorial
representation of the waterfront areas of these facilities
PARANGIPETTAI PORT:
Parangipettai Port is located adjacent to and immediately to the South of the

Silambimangalam port The Port has been licensed for captive use of IL & FS Tamil Nadu
Power Company Limited who have proposed developing a coal based thermal power plant of
3600 MW along with a captive Port facility for importing coal.
Project proponents have proposed a coal import terminal which, in its final phase, is likely to
be designed for handling about 20 Million Tons Per annum of Coal for their proposed 3600
MW power plant presently under development
Waterfront area allotted for Parangipettai Port is about 1.8 kilometers with the northern
limit of the Port being the southern limit of Silambimangalam Port.
The power plant is presently being developed but understands from industry sources, the
company has presently shelved plans for developing the captive port facility and have
planned on importing coal for the power plant from Karaikal Port.
Page | 90
SIRKAZHI COMBINED PORT FACILITY:
Sindya Power have proposed developing a 1320 MW thermal power plant & Empee power
have proposed developing a 1320 MW thermal plant for which, a combined coal import
facility has been proposed near Sirkazhi Taluk in Nagapattinam district, about 34 kilometers
to the south of Parangipettai port limits
The proposal is under consideration and site has not yet been declared as a non-major Port
and Port limits yet to be declared by the TNMB Govt. of Tamil Nadu. The coastal waterfront
& site indicated in Google Earth image is for reference only.
Sindya Power & Empee power have plans of developing a coal import facility at this location
post receiving necessary clearances
KAVERI PORT:
Kaveri Port is located near Poompuhar in the Nagapattinam district, at a distance of about
approximately 8 kilometers to the south of proposed Sindya & Empee coal import facility.
This is a greenfield site which was originally decaled as a captive Port to be developed by the
M/s PEL Power Limited, Hyderabad as a captive port for importing coal for a proposed 1320
MW thermal power project
M/s PEL were unable to develop the project due to various issues including issues in
obtaining environmental clearances for this project and subsequently TNMB has revoked in-
principle approval accorded to PEL for this captive Port project
There has been no development at this site and the Port is presently under purview of TNMB
having a waterfront coastline of about 300 meters
VANAGIRI PORT:
Vanagiri Port is located adjacent to and South of the Kaveri port, near Sirkazhi in
Nagapattinam district.
This is a greenfield site which was originally declared as a captive port for handling coal for a
proposed 1320 MW Power plant to be developed by M/s NSL Power Limited, Hyderabad
Page | 91
M/s NSL were unable to develop the project due to various issues including issues in
obtaining environmental clearances for this project and subsequently TNMB has revoked in-
principle approval accorded to NSL for this captive Port project
There has been no development at this site and the Port is presently under purview of TNMB
having a waterfront coastline of about 800 meters
THIRUKADAIYUR PORT:
Thirukadaiyur Port is a captive port developed by M/s PPN Power Generating Company Pvt.
Ltd., at Pillaiperumalnallur, Nagapattinam district for handling Naphtha and Natural Gas for
the combined cycle 330 MW gas based power Project Plant
The Port was commissioned in 2001 consist of a SPM (Single Point Mooring) located offshore
and an RCC jetty near shore for mooring the tug boats / work boats, etc.
PPN power are now proposing to enhance generation capacity from 330 MW to 1410 MW
The Port site is located at a coastal distance of about 4.5 kilometers to the South of Vanagriri
port and has a waterfront of 150 meters
CHETTINAD THARANGAMBADI PORT:
Chettinad Tharangambadi Port site is located about 2.2 kilometers to the south of the
Thirukadaiyur PPN Port in Nagapattinam district.
This is a greenfield site which was originally declared as a captive port for handling coal for a
proposed 1320 MW Power plant to be developed by M/s Chettinad Power Limited, Chennai.
The National Green Tribunal (NGT) has currently suspended the Environmental Clearance
issued to the power plant and had ordered for environment impact assessment of the project
Understand from industry sources that Chettinad Power are yet to obtain the environmental
clearances for this project
There has been no development at this site and the Port is presently licensed for captive use
to Chettinad Power and has a waterfront coastline of about 800 meters
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Figure 8.3: Google Earth image showing non-major Ports to the North of Silambimangalam port
Figure 8.4: Google Earth image showing non-major Ports to the South of Silambimangalam port
Page | 93
The coastal stretch between Cuddalore old town and Nagapattinam old Port is about 100 kilometers
long within which there exist 9 non-major Ports (8 Ports declared Ports & 1 proposed Port). Further
to the South of Chettinad Tharangambadi Port lies the Karaikal Port which falls under the union
territory of Puducherry followed by Nagapattinam old Port, which is administered by the Tamil Nadu
maritime Board.
Nagapattinam Port, similar to the Cuddalore old Port, is a historic Port and utilized occasionally as an
open road-stead transshipment facility. The port is otherwise mail used by fishing communities for
docking the fishing crafts / trawlers & is surrounded by heavy habitations / dwellings. Further to the
south of Nagapattinam Port lies the Thirukkuvalai Port located at a distance of about 18 kilometers.
M/s Tridem Power had proposed developing a 1980 MW thermal power plant along with a captive
port at this site, however, understand that the in-principle approval accorded to Tridem Power by the
Tamil Nadu maritime Board for Thirukuvalai Port has been recently withdrawn. There has been no
development at this Greenfield Port site as yet. A google earth image depicting the Karaikal,
Nagapattinam & Thirukuvalai Ports is shown below.
Figure 8.5: Google earth image showing Non-major Ports south of Chettinad Tharangambadi Port
Page | 94
This section has detailed the list of non-major Ports on the Cuddalore Nagapattinam coastline.
Most of the declared non-major Ports have a very short coastal / waterfront area and have been
awarded to private entrepreneurs for developing as captive Ports. The Silambimangalam Port has a
waterfront length of about 4 kilometers besides being centrally located with proximity to railway /
road connectivity and for these reasons, has been proposed in this preliminary feasibility report for
developing a large multi-user Greenfield Port for handling cargoes generated in the central Tamil
Nadu region
9 KEY FINDINGS & RATIONALE FOR DEVELOPING A NEW GREENFIELD PORT FACILITY
The reports assessment of the hinterland of Central Tamil Nadu region and competing ports
provides the following key inferences and justifications for the development of a new greenfield
Port facility in the central Tamil and region:
1) Targeting the coal requirements of proposed power plants in the central Tamil Nadu coastal
belt is the primary traffic potential for an alternate greenfield Port to be developed at a mid-
way location between Cuddalore minor Port and Nagapattinam minor Port which can cater to
the coal requirements of the proposed power projects as well as to the other coal cargo
requirements of the cement and sugar industries located in interior Tamil Nadu region. Il&FS
proposed 3600 MW Thermal power plant is already under implementation and as per industry
sources, the company have plans of importing coal for their plant from Karaikal Port.
2) Finished Cement, Sugar & Fertilizers & FRM will contribute a smaller amount of the projected
traffic to the alternate facility.
3) Potential for developing an LNG Terminal of upto 5 MTPA exists to fill in the demand as per
section on LNG detailed in this report. Actual terminal capacity and traffic will have to
separately explored and this facility could be developed adding to traffic.
4) The Central Government has approved the proposal for the proposed PCPIR along the Cuddalore
- Nagapattinam belt in July 2012. However as of this writing, ascertaining scale of developments
at the proposed PCPIR and the companies therein is difficult. At a future date, the industries
which will be developed will require a new Greenfield facility.
5) Container volumes generated in the central interior Tamil Nadu region can be targeted to
bring to the new facility. Presently this ICD traffic is served by Cochin port whereas about 60%
Page | 95
of direct exports are routed through VOC Port. The major cargo centers in central and western
Tamil Nadu - Tirupur, Salem, Karur and Madurai - could be the main generators of container
traffic. However, this will require traffic diversion from VOCP which currently serves this
traffic.
6) Bangalore container traffic and cargo generated in the immediate environs of Chennai
(including Sriperumbudur) will continue to be served by Chennai port or Kamarajar ports
because of the existing rail and road links.
7) Salems iron and steel products cargo may be attracted to the alternate greenfield facility.
8) Project cargo, generally defined as a freight shipment that cannot fit into an ISO-standard container, (air,
sea, rail or truck), and is thus considered to be "Over Dimension (ODC) for normal transport. The
hinterland of Central TN has a leading heavy engineering company i.e. BHEL and many companies engaged
in oil and gas exploration and processing e.g. Hindustan Oil Exploration Company Limited (HOEC) and
NOCL. These companies, power plants and wind power manufacturing companies are the major drivers
for project cargo but the quantum cannot be accurately ascertained.
However, project cargoes will add to the traffic of the proposed new Greenfield facility and are also
revenue generators since primary project cargo handling charges are ad-valorem which is substantially
higher than the scale of rates basis which the other bulk / general cargoes are charged.
9) Additionally, scope for other miscellaneous cargoes comprising of timber, gypsum, clay, and
similar in small volumes would likely be handled intermittently at the port. Timber logs are
imported from countries like Malaysia, Burma etc. and used as construction material and for
furniture and other applications. Timber processing is significant in Trichy, Salem, etc. and
considering the wide scale timber processing activities, it is possible to attract this cargo as well.
10) Understand from informed sources in the Railway Ministry that the Mayiladuthurai to Villupuram
train line is a single line and has a present occupancy of about 82 % only and the option of
doubling this lane to cater to the additional traffic generations estimated in this report will be
possible.
11) The railway distance of the Mettur Thermal Power station from Ennore Port is about 392
Kilometers and from Thootukoodi Port is about 430 Kilometers whereas, the distance from
Mettur Power plant to Cuddalore Junction is only 243 kilometers. While coal volumes for Mettur
Page | 96
Thermal power plant are currently met by Ennore Port and have not been used for estimating
coal traffic for a new facility, the developing a greenfield facility in the Cuddalore region can lead
to a very large logistical cost savings for TANGEDCO while simultaneously freeing up Ennore Port
for handling coal for other Thermal power plants (both private and government) planned in
Northern Tamil Nadu / Andhra & Eastern and Karnataka region.
12) A key and as yet unquantified cargo volumes which could add to the estimates of traffic assessed
for this report is coastal cargo movement on the Indian coast which is environmentally friendly
with a low carbon foot-print (as compared to road / rail movements) and also has a catalytic
effect in fostering industry by way of reduced cargo movement logistical costs.
13) The Ministry of Hydrocarbons has identified the Palar & Cauvery basins located on the Tamil
Nadu Coast have been classified as Category I basins (i.e with proven commercial
productivities) and with the NELP Policy of the Ministry Of Petroleum & Natural Gases, in the
future when E&P activities for Oil & Gas are commenced in a large scale, Offshore Supply (OSV)
will be required to service these fields. For example Kakinada Port services about 1000 Off Shore
Supply vessels annually for the E&P activities at the Krishna-Godavary basin.
14) Tamil Nadu Vision 2023 document stated objectives are to develop three large scale port
projects increasing cargo handling capacity of Tamil Nadu by 150 million tonnes per annum. This
proposed Greenfield facility will go a long way in meeting the proposed objectives.
9.1 SUMMARY OF POTENTIAL TRAFFIC AT NEW GREEN FIELD PORT
This report has assessed the total demand from various cargo sources and the total potential cargo volumes
which could be attracted to a new Greenfield Port facility by the year 2035 which has been enumerated under
the individual cargo traffic heads earlier in the report has been summarized in Table appended below as well
as at Annexure - III.
Coal constitutes the largest cargo throughout the period. The following table summarizes cargo-wise potential
volumes for a new Greenfield Port facility in the Central Tamil Nadu coast.
Page | 97
Commodity Unit FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY 25 FY 26 FY 27 FY 28 FY 29 FY 30 FY 31 FY 32 FY 33 FY 34 FY 35
Bulk
Thermal Coal Million MT 2.97 9.02 11.08 14.14 14.20 16.26 16.33 21.40 22.09 21.56 21.64 21.72 26.81 26.91 27.00 27.11 27.21 32.33 32.44 32.57 32.70
Break-Bulk
Cement Million MT 0.10 0.10 0.10 0.11 0.11 0.11 0.11 0.11 0.12 0.12 0.13 0.13 0.14 0.15 0.15 0.16 0.17 0.18 0.19 0.19 0.20
Sugar Million MT 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.04 0.04 0.05 0.05 0.05 0.05 0.05 0.08 0.08 0.08 0.08 0.09 0.09 0.09
Fertilizer Million MT 0.75 0.77 0.80 0.82 0.84 0.87 0.90 0.92 0.95 0.98 1.01 1.04 1.07 1.10 1.13 1.17 1.20 1.24 1.28 1.32 1.35
Liquid Bulk
Petrochemicals* Million MT 0.00 0.00 3.00 6.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00
Vegetable oils Million MT 0.00 0.23 0.24 0.25 0.26 0.27 0.29 0.30 0.32 0.33 0.35 0.37 0.38 0.40 0.42 0.45 0.47 0.49 0.52 0.54 0.57
Containers TEU 0.03 0.06 0.10 0.13 0.17 0.20 0.24 0.27 0.30 0.33 0.36 0.39 0.42 0.45 0.48 0.52 0.55 0.58 0.61 0.64 0.65
Containers-14
Million MT 0.42 0.84 1.33 1.82 2.31 2.80 3.29 3.71 4.13 4.55 4.97 5.39 5.81 6.23 6.65 7.21 7.63 8.05 8.47 8.89 9.10
MT/TEU
Advalore
Project Cargo# m/ - - - - - - - - - - - - - - - - - - - - -
freight
LNG ** Million MT - - - 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00
Total Potential
Millon MT 4.27 10.99 16.57 28.16 31.75 34.35 34.95 40.50 41.65 41.58 42.14 45.70 51.26 51.84 52.44 53.17 53.76 59.37 59.98 60.60 61.01
Traffic
# excludes potential project cargoes which cannot be ascertain at this stage
* Petrochemical projection basis traffic from upcoming Refinery Project & industries to be developed in PCPIR in Cuddalore District
** Traffic Potential for LNG is provisional. Detailed studies will be required to undertaken to obtain feasibility of LNG terminal at Greenfield facility
Page | 98
10. LOCATION & SITE PROPOSED FOR DEVELOPMENT OF NEW GREENFIELD PORT FACILITY
Basis interaction with Tamil Nadu Maritime Board Officials and various stakeholders, industry representatives
and an internal analysis, the site proposed in this report for developing an alternate Greenfield facility is the
Silambimangalam Minor Port located in Cuddalore District.
The Tamil Nadu M8aritime Board had awarded a Concession to the Archean Granite Group, a Chennai based
industrial group with interests in Granite and Shipping, to develop a Ship yard cum minor port complex at
Silambimangalam, Cuddalore District, Tamil Nadu in the year 2007. The SPV proposed for the project was styled
as M/s Goodearth Shipbuilding Private Limited (GSPL) and concession was awarded until the year 2037 and for
this purpose, Tamil Nadu Maritime Board had declared the Port limits for M/s GSPL and had named the minor
port as Silambimangalam Shipyard Port. Below is the locational image of M/s SPL Silambimangalam
Port site.
Figure 10-1: Location of the proposed Silambimangalam Minor Port
The Silambimangalam minor Port, situated about 30 kilometers to the south of Cuddalore town, is located
immediately south of the proposed Thiruchopuram Port which has been awarded to M/s Nagarjuna Oil
Corporation Limited (NOCL) who have proposed to develop a 6 MMTPA Petroleum Refinery cum Captive
Marine Terminal and to the North of the Parangipettai Port awarded to M/s IL&FS who are developing a 3600
MW Thermal Power Plant.
10.1 STATUS OF LICENSE ISSUED FOR SILAMBI MANGALAM MINOR PORT
Page | 99
M/s GSPL delayed implementing the shipyard in the wake of the global downturn. Their public hearing for
obtaining necessary environmental clearances had also not been successful and the Company, having run into
financial problems, put the project on hold.
Subsequently, the TNMB has, as on 28.08.2012, cancelled all the approvals / permissions / concession granted
to GSPL for developing the shipyard cum minor ports complex.
Since the licence issued to GSPL has now been revoked; the Tamil Nadu Maritime Board is has sought an
Expression of Interest from interested parties to develop the site as a minor port and TNMB is in a position to
enter into a fresh agreement with interested agencies who wish to.
Presently, there is no multi-commercial port operational between Chennai & Karaikal except for the Cuddalore
old Port which has a draft of only about 1.50 meters and therefore cannot accommodate larger vessels.
Figure 10-2: Location of proposed site for developing a new Greenfield Port Facility Silambimangalam minor Port
Assessment of the traffic potential for the area reveals that there is a substantial projected demand from the
interior central Tamil Nadu hinterland for developing a new alternate Green Field Port facility capable of
handling multi commercial cargoes originating / culminating from the hinterland.
The hinterland for Silambimangalam Port has been shown in map below.
Page | 100
Figure 10-3: Region and Coastline within which a Port Site will need to be identified
Page | 101
10.2 OVERVIEW OF SILAMBIM ANGALAM SHIP YARD PO RT
This Port is located in Chidambaram Taluk, Cuddalore District and approximately 25 kms south of the Existing
Cuddalore Minor Port and the notified Silambimangalam Shipyard Port Limits falls between Annapanpettai
village in the North and Pudukuppam village in the South.
Page | 102
10.3 LOCATIONAL ADVANTAGE & CONDITIONS OF THE PROJECT SITE
This part of the Sea is having a natural depth of 10 m natural available at 1 nm from the shore and so on. The
nature of the sea bed fine sand and the holding ground is good for anchorage. This region has been declared as
PCPIR (Petroleum, Chemicals and Petrochemicals Investment Region) by the Government of India. On the
Northern side of this Port, M/s Nagarjuna Oil Corporation Ltd is developing the Thiruchopuram captive terminal
which is presently stalled and on the Southern side of this Port M/s IL & FS are developing a 3600 MW Thermal
power plant, work on which is already underway. The company had initially proposed a captive coal import
terminal however, as per industry sources, the captive terminal is presently not being implemented and the
company are planning to rail their coal requirements from Karaikal Port.
Natural depth of about 10 meters is available within at one nautical mile from the shore and with another 5
metres of dredging, the port can handle Panamax size vessels.
Further, one of the key advantage to the Silambimangalam site is the fact that it is a declared Port under the
Tamil Nadu maritime Board and also is a Custom Notified Port facility where import and export of cargoes
are permitted by the Indian Customs.
10.3.1 PORT LIMITS
01 Latitude 11 34 00 North
Longitude 79 45 30 East
Latitude 11 33 30 North
02
03
04
Table 10-1: Port Limits of Silambimangalam Minor Port as declared by Govt. Of Tamil Nadu
10.3.2 INDUSTRIES LOCATED IN AND AROUND SILAMBIMANGALAM SHIPYARD PO RT
Page | 103
Silambimangalam Shipyard Port has approximately 4.5 kilometres of waterfront in the location South of
Thiruchopuram Minor Port between Annapanpettai and Pudukuppam village and has approximately 6,44,550
Sq. mtrs or 159.27 Acres of Coastal Land. It covers the vast hinterland with most of the Central, Eastern and
Western districts of Tamilnadu and also some parts of Karnataka and Puducherry. There are numerous Cement,
Sugar and Textile industries around this region. This port site will play a vital role in serving the industries in this
hinterland.
10.3.3 CONNECTIVITY:
Road:-
a) The National Highways NH 45A (Chennai Nagapattinam), which is the EAST COAST ROAD is
connected to Silambimangalam Shipyard Port from a distance of 4 km.
b) The Proposed 4 way road connecting Chennai with Thanjavur is about 20 kilometres from the Port.
c) The existing four way road connecting Chennai with Kanyakumari is about 40 kilometres from the Port.
Rail:-
a) The Broad Gauge line from Villupuram-Cuddalore Port Junction to Tiruchirappalli via Virudhachalam is
about 20 kilometres from the Port and the nearest railway station is Kullanchavadi.
b) The Broad Gauge line from Villupuram-Cuddalore Port Junction to Thanjavur via Chidambaram is
about 4 kilometres and the nearest railway station is Pudhuchatram.
Air:-
a) The nearest Domestic Airport is at Puducherry which is about 50 kilometres from the Port.
b) The nearest International Airport is at Chennai which is about 180 kilometres from the Port and at
Tiruchirapalli which is about 160 kilometres from the Port.
10.3.4 SITE PHOTOGRAPHS

Figure 10-4: Present Site Condition Photographs
Page | 104
11 PRELIMINARY PORT LAYOUT
Based on the traffic demand assesment undertaken in this report, a preliminary design has been
prepared for a multi-commercial Port facility which could be developed in Phases.
A typical Greenfield Port Layout has been presented below for conceptual planning purposes. The
layout presented in this section represents a generic Greenfield multi-cargo Port design and this
design will have to be modified to suit site specific conditions basis detailed Environmental, Winds,
Wave Modelling, Littoral Drift & Geo Technical studies which will have to be undertaken at a later
stage. The general Layout of the proposed facility has been depicted in layout below.
Page | 105
It is envisaged that the Port will be developed in Phases & the phasing shall be scheduled to optimize
capital expenditure. In the final Phase, depending on the organic growth originating from the
hinterland, it is recommended that the proposed facility have a handling capacity in the range of 50
Million Metric Tons Per Annum to 60 Million Metric Tons Per Annum depending on actual future
traffic & EXIM cargo demand.
Detailed Berth Capacity & Occupancy calculations will require to be made while preparing the
Techno-Economic Feasibility Report & Detailed Project Report. In this Preliminary feasibility Report, a
general phase wise development methodology has been set out for planning and referential
purposes only. This Preliminary feasibility report proposes to develop the Greenfield Port in Three
Phases and scheduled as and when the Exim cargo demand increases from associated hinterland
area. For e.g., Phase I envisages development of a total of 4 Berths comprising of 2 Coal Handling
Berth; 1 General Cargo Berth & 1 Container Berth equipped with requisite container / cargo handling
equipments. A broad Phased development of the proposed facility has been set out below.
Page | 106
Phase I Development
At the start, the proposed facility can be designed to handle a maximum of 15 MMTPA and will
consist of the following facilities:
Two Coal Berths 350 metres (L) for handling Panamax / Baby cape - size Vessels
One General cargo Berth 300 metres (L)
One Container Berth 300 metres (L)
Breakwater 1000 meters (L) in North and 1000 meters (L) in South for protection against
predominant wind, waves and swell
Coal Stackyard of 6 Hectares
4 Stacker / Reclaimer systems
4 Ship Unloaders with Capacity 17,000 MT/day
2 Mobile Harbor cranes outfitted with Grab of 75 cubic meter capacity , 15,000 MT/day
2 Quay Cranes for Container Handling
Port craft, 2 Tug Boats and 1 Support Vessel
Conveyor belt system for coal conveyance from Berth to Stackyard
Statutory Navigational and Communication facilities
Port control room, administrative building, Electric Substation.
Firefighting facilities and Pollution control
Capex on Dredging operations Assume channel length of 3 kilometers to reach 16 meters depth
Phase II Development
After commissioning, in order to enhance cargo throughput volumes handled at the Port facility to
about 30 MMTPA, additions to the above facility have been envisaged as follows:
One additional Coal berth on Northern End of Existing Berths 300 meters (L) for Panamax / cape - size
vessels
Page | 107
One Liquid Cargo Berth on the southern end of the existing Berth
Extension of Dredging Depth to 18 meters
Two Ship Unloader System with Capacity 20,000 MT/day
Nos. of Tug Boats
Trestle for the proposed berth and Additional Conveyor belt system for handling coal from new berth
Phase III Development
In this phase, the following additions have been envisaged which will enhance the total handling
capacity to 05 Million Metric Tons Per Annum.
One Coal Berth of 300 m length on the Northern end of the New Coal berth.
Additional Trestle for the proposed berth and conveyor system to stack-yard.
One Liquid Cargo Berth on the Southern end of the new Liquid cargo berth.
Two ship unloaders of capacity 20,000 MT/day
Dredging to accommodate Cape Size bulkers & mega container vessels
Since at this stage, The Tamil Nadu State Planning Commission require to assess the Preliminary
Feasibility for developing a large multi-user non-major Port at a Greenfield site (or) at a
Brownfield site for catering to the additional cargo demand in the State, it is to be noted that the
phase-wise development methodology set out in this section is for planning purposes only. Detailed
cargo traffic demand for Phase I, II & III will need to be ascertained along with Berth capacity &
occupancy calculations while preparing the Techno-Economic Feasibility Report.
Page | 108
Figure 11-1: Preliminary Layout of proposed Greenfield Port at Silambimangalam, Cuddalore District
Figure 11-2: Port Access Layout at Silambimangalam, Cuddalore District
As detailed earlier, this Preliminary Feasibility study analyzes the need for developing a Large Multi
user Non Major port in Tamil Nadu basis projected traffic from Central Tamil Nadu region, arriving
at an optimum design and presenting a preliminary Conceptual Layout of proposed Port facilities
along with block cost estimates of developing such a project. This Preliminary feasibility report is
therefore a prelude to preparing a Techno-Economic Feasibility and Detailed Project Report. At a
Page | 109
later stage the detailed technical site specific studies, mathematical modeling and other
investigative studies which are generally required for preparing a complete technical feasibility
report for a specific site will be conducted separately.
Field surveys and investigations or procurement of any site specific data from external agencies are
not envisaged at this stage and the Block Costs estimated will be preliminary and indicative only.
12 BLOCK COST ESTIMATE S
Based on the preliminary layout detailed in the previous section, a preliminary CAPEX (Capital Expenditure)
estimate has been prepared for the proposed Greenfield Port development in three phases has been presented
in this section of the report.
The cost is divided into major components such as Dredging of approach channel, harbor basin, turning circle,
developing Breakwaters, Berthing Structures, Buildings, Coal Berth & handling equipments, Container Yard,
Equipments, Utilities, Port Crafts & Aids to Navigation and Gate Complex etc. For each major component,
based on its functional requirements, cost has been estimated as per the proposed development.
Break water development to provide tranquility, Dredging of approach channel & harbor basin and disposal of
dredged material / reclamation (if any) are one of the major cost heads for any port project and depending on
the specific site may even constitute upto nearly 50% of the total Port development costs. For design &
alignment of breakwater and dredging quantity estimation, input data required for accurate cost estimation is
the bathymetry, littoral drift governing wave direction and height, governing wind direction, wind speed and
wave period after which the wave directions & heights in the region are modelled utilizing dedicated software
such as the swan model. A design life of generally 50 years is required and port infrastructure is usually
designed to withstand a storm with a 100-Year return period. Only after knowing these input parameters,
development costs for the major port components can be accurately estimated.
In this Preliminary feasibility Report, cost estimates for developing berthing structures, dredging works of
approach channel & harbor basin and developing breakwaters has been done based on general bathymetric
contours ascertained through a small scale navigational chart for the area and prevalent wave / wind
parameters on East Coast India. The unit rates have been taken based on the past projects carried out by the
Consultants in India.
Page | 110
Phase I of the facility will comprise of developing 4 berths
BLOCK COST ESTIMATE FOR DEVELOPING SILAMBIMANGALAM PORT

Sr.
No. Description Unit Quantity Rate (INR) Amount (INR)
PHASE-I
1 Berthing Structure - Civil Costs
1.1.1 Coal Berths - 350 m x 50 m -2 nos Sqm 35,000 61,000 2,135,000,000
1.1.2 Conveyer foundation to Stackyard M 1,500 65,000 97,500,000
1.1.3 Coal Stackyard Development Ha 6 80,000,000 480,000,000
1.1.4 Multi Cargo Berth- 300 m x 50 m Sqm 15,000 65,000 975,000,000
1.1.5 Development of General Cargo Back up area Ha 2 50,000,000 100,000,000
1.1.6 Container Berth - 300 m x 50 m Sqm 15,000 66,000 990,000,000
1.1.7 Development of Container Yard Ha 3 70,000,000 210,000,000
1.1.8 Fenders & Bollards LS 80,000,000
1.1.9 Diapharm wall for Shore Protection (For 1300m X 30m Depth) Sqm 45,500 22,000 1,001,000,000
1.1.0 Rubble Slope Protection (1300 m x 50 m) Sqm 65,000 1,200 78,000,000
1.2.1 Truck Parking Area Sqm 10,000 1,750 17,500,000
Sub Total (1) 6,164,000,000
2 Material Handling Equipments

2.1.1 Ship Unloaders systems No 4 310,000,000 1,240,000,000
2.1.2 Stacker Reclaimer Systems No 4 130,000,000 520,000,000
2.1.3 Container Handling equipments LS 500,000,000
2.1.4 Cargo Handling equipments LS 400,000,000
2.1.6 Truck Loading Station & System LS 20,000,000
2.1.7 Wagon Loading Station & System LS 30,000,000
2.1.8 Conveyer System M 1200 260,000 312,000,000
2.1.9 Weighing System LS 50,000,000
Sub Total (2) 3,072,000,000
3 Utilities
3.1.1 Administration Building Sqm 500 22,000 11,000,000
3.1.2 Storage Building Sqm 3,000 12,000 36,000,000
3.1.3 Fire Fighting system LS 15,000,000
3.1.4 Pollution Control LS 10,000,000
3.1.5 Dust Supression System LS 7,500,000
3.1.6 Electrical Utility System LS 290,000,000
3.1.7 Signal Station LS 17,500,000
3.1.8 Fire Station LS 8,500,000
3.1.9 Water Supply & Pipe lines LS 15,000,000
3.1.0 IT and Communication LS 17,500,000
3.2.1 Terminal boundary wall & Gate Complex LS 50,000,000
3.2.2 Drainage system & Settling Pond LS 27,500,000
3.2.3 Canteen & Service buildings Sqm 400 21,000 8,400,000
3.2.4 Green Belt LS 3,500,000
Sub Total (3) 517,400,000
4 Mooring Crafts and Navigational Aids

4.1 Port Craft 2 Tugs & Support vessel 1 LS 23,000,000
4.2 Navigational lights & Buoys LS 7,500,000
4.3 Navigatinal equipments (Radar, VHF, VTMS etc) LS 17,500,000
Sub Total (4) 48,000,000
5 Rail Connectivity
5.1 Railway Connectivity to Coal stackyard / Container yard KM 4 55,000,000 220,000,000
5.3 Marshelling yard LS 5,000,000
5.4 Diesel Engine No 2 9,000,000 18,000,000
5.5 Over Head Electric Line System LS 10,000,000
Sub Total (5) 253,000,000
6 Break water
Construction of North & South side Break water (Assumed water
6.1 depth 15m) 2,000 2,500,000 5,000,000,000
Sub Total (6) 5,000,000,000
7 Road Connectivity
7.3 Other Roads in Operational area LS 18,000,000
Sub Total (7) 18,000,000
8 Dredging
8.1 Approach channel(Channel width assumed 3km to reach 16m Cum 8,500,000 205 1,742,500,000
8.2 Turning Circle (Assumed 10 m depth) Cum 285,000 205 58,425,000
8.3 Berth side (Assumed 10m depth) Cum 10,335,000 205 2,118,675,000
Sub Total (8) 19,120,000 3,919,600,000
9 Land
9.1 Land Purchase Cost Acre 1,000 750,000 750,000,000
Sub Total (9) 750,000,000
PHASE-I DEVELOPMENT COST (1+2+3+4+5+6+7+8+9) 19,742,000,000
Page | 111
Phase II of the facility will comprise of developing 2 additional berths.
PHASE - II
1 Berthing Structure
1.1 Coal Berth -Civil cost for(300 m x 50 m) Sqm 15,000 61,000 915,000,000
1.2 Conveyer Foundation to Stackyard M 1,750 35,000 61,250,000
1.3 Liquid Cargo Berth- Civil Cost for(300 m x 50 ) Sqm 15,000 66,000 990,000,000
POL Storage Terminal - Civil cost LS 140,000,000
1.4 Port Craft Jetty LS 75,000,000
1.5 Fenders & Bollards LS 55,000,000
Sub Total (1) 2,236,250,000
2 Material Handling Equipments

2.1 Ship Unloaders System No 2 310,000,000 620,000,000
2.2 Conveyer system M 1,750 125,000 218,750,000
2.3 Loading & Unloading Arm LS 60,000,000
Pipe line installations & Storage tank for POL LS 320,000,000
Sub Total (2) 1,218,750,000
3 Approach Trestle
3.1 Civil Structure cost (1100 m x 10 m) Sqm 11,000 55,000 605,000,000
3.3 Other Misc Cost LS 7,500,000
Sub Total (3) 612,500,000
4 Utilities
4.1 Fire Fighting System LS 10,000,000
4.2 Pollution Control System LS 6,500,000
4.3 Electrical Utility System LS 130,000,000
Sub Total (4) 146,500,000
5 Mooring Crafts & Navigational Aids

5.1 Tugs No 2 10,000,000 20,000,000
5.2 Navigational lights & Buoys LS 5,000,000
Sub Total (5) 25,000,000
6 Dredging
6.1 Port Basin (Depth increase to 18 m ) Cum 10,000,000 205 2,050,000,000
Sub Total (6) 2,750,000,000
PHASE - II Developmentt Cost (1+2+3+4+5+6) 6,989,000,000
Page | 112
Phase III of the facility will comprise of developing 2 additional berths.
PHASE-III
1 Berthing Structure
Coal Berth -Civil cost for(300 m x 50 m) Sqm 15,000 61,000 915,000,000
Conveyer Foundation to Stackyard M 1,750 35,000 61,250,000
Liquid Cargo Berth -Civil cost (300 m x 50 m) Sqm 15,000 66,000 990,000,000
Fenders & Bollards LS 66,000,000
Sub Total (1) 2,032,250,000
2 Approach Trestle
Civil Structure cost for (1100 m x 10 m) 11,000 55,000 605,000,000
Other Misc Cost 7,500,000
Sub Total (2) 612,500,000
3 Cargo Handling Equipments

Ship Unloaders System No 2 310,000,000 620,000,000
Conveyer system M 1,750 125,000 218,750,000
Pipe line installations & Storage tank for POL LS 280,000,000
Loading & Unloading Arm LS 60,000,000
Sub Total (3) 1,178,750,000
4 Utilities
Fire Fighting System LS 8,500,000
Pollution Control System LS 5,000,000
Electrical Utility System LS 100,000,000
Sub Total (4) 113,500,000
PHASE - III Developmentt Cost (1+2+3+4) 3,937,000,000
The preliminary Block Cost Estimates presented in this section reflect current construction costs (2014 base
year) and are provided for reference only. They represent a professional opinion based on macro cost level
and available site information. Actual costs may vary significantly from the provided cost estimates depending
on the construction timeline, changed market conditions, availability of materials, change of policy and other
unlisted factors. Therefore, these budget cost estimates are not guaranteed figures for financing or carrying out
any transactions. Additionally, no taxes such as Service Tax, VAT etc. have been included.
Broadly, the following site specific studies will require to be undertaken during development of a Techno-
Economic Feasibility Report for the proposed Greenfield Port.
Bathymetric surveys
Shallow seismic survey
Side Scan Sonar survey
Wave/Wind/ Tidal Data Measurement
Coastal Regulatory Zone HTL/LTM Mapping
Littoral estimate & Shoreline change modelling studies
Near Shore & Offshore Wave Modelling (Hind casting) Studies
Extreme Wave Height & Period analysis
Page | 113
Numerical modelling of wave penetration inside harbour basin

Estimation of wave and tide induced sedimentation inside harbour basin
Finalizing layout, design and length of breakwater basis above studies
Geotechnical surveys - marine & land In-situ testing of soil and rocks
Ship Manoeuvrability studies
Mooring Analysis
Topographic surveys
Environmental Impact Assessment - 4 Seasons
Quantitative Risk Analysis
After undertaking above site specific studies, Block Cost Estimates for developing the large multi-user Non-
Major Greenfield Port at the proposed site ascertained in this report may be revised.
***
Page | 114
LIST OF FIGURES
Figure 2-1: GSDP: Gross State Domestic Product, GDP: Gross Domestic Product. ................................................ 10
Figure 2-2: Tamil Nadu NSDP values...................................................................................................................... 11
Figure 2-3: Tamil Nadu NSDP values...................................................................................................................... 12
Figure 3-1: Major & Non-Major Ports in India ....................................................................................................... 17
Figure 4-1: Tamil Nadu Maritime Board Ports map ............................................................................................... 19
Figure 5-1: Districts and Key Industries in the District ........................................................................................... 22
Figure 5-2: Tentative Distance Indicator of interior TN region to the major ports of Chennai & Tuticorin .......... 23
Figure 5-3: Study Area Boundary ........................................................................................................................... 24
Figure 6-1: Tamil Nadu EXIM trade: Traffic growth projections, 2012-13 to 2019-20, Million tonnes ................. 27
th
Figure 7-1: Demand projection of Fertilizers Source WG report for 12 5 year plan......................................... 62
Figure 7-2: Installed Production Capacity Source Ministry of Fertilizers ............................................................ 62
Figure 7-3: All India Fertilizer Production Volumes ............................................................................................... 63
Figure 7-4: Import of Fertilizers as per Ministry of Fertilizer Statistics.................................................................. 63
Figure 7-5: Global Gas price movements as per World LNG Report 2013 / Bloomberg & BCG Analysis .............. 71
Figure 7-6: Growth in Global LNG Trade volumes as per World LNG Report 2013 & BCG Analysis ...................... 72
Figure 7-7: Global LNG Demand as per World LNG Report 2013 & BCG Analysis ................................................. 73
Figure 7-8 : Route map for Kochi- Mangalore- Bangalore LNG pipleine ............................................................... 75
Figure 8-1: shows the locations of competing ports with respect to each other .................................................. 87
Figure 8-1: Location of the proposed Silambimangalam Minor Port .................................................................... 99
Figure 8-2: Location of proposed site for developing a new Greenfield Port Facility Silambimangalam minor
Port ...................................................................................................................................................................... 100
Figure 8-3: Region and Coastline within which a Port Site will need to be identified ......................................... 101
Figure 9-1: Preliminary Layout of proposed multi-cargo Port at Silambimangalam, Cuddalore District ............ 109
Figure 9-2: Preliminary Layout of proposed multi-cargo Port at Silambimangalam, Cuddalore District ............ 109
Page | 115
LIST OF TABLES
Table 1-1: Tamil Nadu State Economic Indicators (Source: TNIDB & TIIC) .............................................................. 7
Table 2-1: Tamil Nadu State Economic Indicators (Source: TNIDB & TIIC) ............................................................ 10
Table 2-2: Comparison of Growth Rates, State wise, 2012-2013 .......................................................................... 11
Table 2-3: Per Capita Income, Tamil Nadu and India, 2004-05-2010-11 ............................................................... 11
Table 5-1: Major industries in Tamil Nadu as per District-wise 2010-11 ............................................................... 23
Table 6-1: Indian Ports: Traffic and capacity projections to 2019-20 .................................................................... 25
Table 6-2: Commodity wise traffic projections by 2019-20, Million tonnes......................................................... 28
Table 6-3: Major companies in Puducherry ........................................................................................................... 34
Table 6-4: Major companies in Karur .................................................................................................................... 29
Table 6-5: Major companies in Namakkal ............................................................................................................. 29
Table 6-6: Major companies in Thirupur ............................................................................................................... 30
Table 6-7: Major companies in Perambalur .......................................................................................................... 31
Table 6-8: Major companies in Ariyalur................................................................................................................. 31
Table 6-9: Major companies in Thiruchirapalli ...................................................................................................... 32
Table 6-10: Major companies in Cuddalore........................................................................................................... 33
Table 6-11: Major companies in Villupuram.......................................................................................................... 35
Table 6-12: Major companies in Salem ................................................................................................................. 36
Table 6-13: Major companies in Erode .................................................................................................................. 37
Table 7-1: Methodology adopted for assessing traffic originating from Central TN Hinterland ........................... 37
Table 7-2: Coal volumes at Chennai, VOCP, Kamarajar and Karaikal port............................................................. 38
Table 7-3: Sources of power Tamil Nadu ............................................................................................................. 39
Table 7-4: Operating TNEB power plants .............................................................................................................. 40
Table 7-5: Proposed power plants by TNEB .......................................................................................................... 40
Table 7-6: Ports of choice for the proposed TNEB power plants........................................................................... 41
Table 7-7: Power projects by private companies .................................................................................................. 44
Table 7-8-: Estimated capacity developments at Kamarajar and Karaikal port..................................................... 47
Table 7-9: Coal volumes for Greenfield Port by potential IPP & Mettur power plants ........................................ 48
Table 7-11 : shows the potential coal import volumes for cement plants ........................................................... 50
Table 7-12 : Total potential coal volumes for Karaikal port ................................................................................. 53
Table 7-13 : Cement plants in Central Tamil Nadu ............................................................................................... 54
Table 7-14 : Cement volumes at Karaikal port...................................................................................................... 55
Table 7-15 : Estimated cement volumes for Karaikal port ................................................................................... 56
Table 7-16 Sugar mills in central Tamil Nadu........................................................................................................ 58
Table 7-17 : Sugar volumes at Chennai and VOC ports ........................................................................................ 59
Page | 116
Table 7-18 : Sugar volumes at Karaikal port ......................................................................................................... 60

Table 7-19 : Estimated sugar volumes at Karaikal port ........................................................................................ 60
Table 7-20 : Fertilizer plants in Tamil Nadu .......................................................................................................... 63
Table 7-21 Fertilizer & FRM traffic at Chennai port and VOCP ............................................................................. 64
Table 7-22 : Estimated fertilizer volumes at Greenfield Port ................................................................................ 65
Table 7-23 : Estimated petrochemical products volumes at Greenfield Port ....................................................... 68
Table 7-24 : Vegetable oil volumes at Chennai port and VOCP- Last 5 years ........................................................ 69
Table 7-25 : Estimated edible oil volumes at Karaikal port ................................................................................... 70
Table 7-26: Estimated Forecast & Growth Rate for Container Trade: 1980 ~ 2015 .............................................. 78
Table 7-27: Container handled in Major ports 1995 to 2006 ................................................................................ 79
Table 7-28: Container handled in Indian ports (Sector-Wise) 2007 to 2012 ......................................................... 79
Table 7-29 : All India Container Traffic Projections ............................................................................................... 82
Table 7-30 : Major Container Traffic Share of Southern India Ports ..................................................................... 83
Table 7-31 : Major container cargo centres in South India ................................................................................... 83
Table 7-32: Traffic & Capacity planned in existing terminals in Chennai Ennore Cluster. ..................................... 84
Table 7-33: Traffic & Capacity planned in other Southern India Terminals ........................................................... 85
Table 7-34: Traffic & Capacity planned in other Southern India Terminals ........................................................... 86
Table 7-35 Traffic Potential Projections for New Greenfield on TN coast ............................................................. 85
Table 8-1: Port Limits of Silambimangalam Minor Port as declared by Govt. Of Tamil Nadu ............................. 103
Page | 117
Disclaimer
This Preliminary feasibility report is a preliminary report developed for assessing cargo
demand and the potential of EXIM traffic likely to be generated from Central Tamil
Nadu Region and thereafter exploring the preliminary feasibility of developing an
alternate Greenfield Facility at a suitable location on the Tamil Nadu Coast. The
preliminary feasibility of the site proposed in this report is subject to detailed
bathymetry, hydrological, geological, Oceanographic and other technical studies the
results of which, may alter the proposed location and layout.
Block costs indicated are based on rough estimates and are intended to provide
reasonable cost estimate for planning purposes only. To obtain more accurate costs
detailed site specific studies such as soil investigations / basic engineering design of
civil structure and other ancillary equipment will have to be undertaken after which
more accurate estimates could be provided. Kalyani Maritime has provided these
block cost estimates with available data and on a best effort basis and cannot be held
liable for any differences in the estimates provided and the final costs.
For information obtained from third parties, these are based on inputs received in
preliminary meetings and enquiries. It does not purport to be an authenticated or a
detailed quotation / input. Further investigation enquiry and studies will need to be
undertaken to verify and validate the information provided.
------------END OF REPORT----------
Page | 118

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Pre-Feasibility Study on development of a

large multi-user Non-Major Port in

Pre-Feasibility report overview .................................................................................................. 3

Report key findings .................................................................................................................... 4

Proposed site for developing Port facility .................................................................................. 5

Report conclusion ...................................................................................................................... 6

1.0 Introduction ............................................................................................................ 6

1.2 Rationale for the Project .................................................................................................... 7

1.3 Feasibility Report objectives and outline ........................................................................ 8

2.0 Tamil Nadu State Profile .......................................................................................... 9

2.1 Tamil Nadu Economy - an overview ................................................................................... 9

3.0 Indian Port Scenario: An Overview ........................................................................ 16

3.1 Traffic handled.................................................................................................................. 17

4.0 Tamil Nadu Ports Profile & Policy Framework ........................................................ 18

4.1 Tamil Nadu Minor Ports Policy ........................................................................................... 20

5.0 Tamil Nadu Industrial Regions ............................................................................... 22

6.0 Traffic Growth Potential Assessments ................................................................... 25

6.1 Traffic growth projections as per Govt. of India statistics ............................................... 25

6.2.1 Karur ................................................................................................................................. 28

6.2.6 Thiruchirapalli ................................................................................................................... 31

7.0 Assessment of Potential Traffic.............................................................................. 37

7.1 Introduction ...................................................................................................................... 37

7.2 Cargo potential analysis ................................................................................................... 37

7.2.1 Coal ................................................................................................................................... 38

8.0 Competing Port Facility Analysis in Tamil Nadu ...................................................... 86

8.1 Other proposed captive ports .......................................................................................... 88

9.1 Summary of potential traffic at new Greenfield port ...................................................... 97

10.1 Status of License issued for Silambimangalam minor port .............................................. 99

10.2 Overview of Silambimangalam ship yard port ............................................................... 102

11.0 Preliminary Port Layout ....................................................................................... 105

12.0 Block Cost Estimates ........................................................................................... 110

PRE-FEASIBILITY REPORT OVERVIEW

REPORT KEY FINDINGS

PROPOSED SITE FOR DE VELOPING PORT FACILI TY

1.2 RATIONALE FOR THE PROJECT

No table of (in Million Tonnes) % share of % share of Non-

TAMIL NADU VISION 20 23

1.3 FEASIBILITY REPORT OBJECTIVES AND OUTLINE

The objectives of the Preliminary feasibility study are:

The tasks would include the following:

2. TAMIL NADU STATE PROFILE

2.1 TAMIL NADU ECONOMY - AN OVERVIEW

SELECTED ECONOMIC IN DICATORS

ECONOMIC GROWTH TRENDS

Indicator Unit Tamil Nadu India

Figure 2-2: Tamil Nadu NSDP values

Comparison of Growth Rates, State wise, 2012-2013

State Growth Rate (%)

Tamil Nadu 9.4

Andhra Pradesh 6.8

Table 2-2: Comparison of Growth Rates, State wise, 2012-2013

Year Tamil Nadu (INR ) India (INR )

2004 -05 30,062 24,143

2005 -06 35,243 27,123

2006 -07 42,288 31,198

2007 -08 47,606 35,820

2008 -09 54,140 40,605

2009 -10 63,547 46,492

2010 -11 72,993 54,835

2011 -12 84,058 60,972

2012 - 13 94,720 65,999

SECTORIAL CONTRIBUTIO N TO GSDP

TAMIL NADU VISION 20 23

TAMIL NADU INDUSTRIA L POLICY 2014