Published On:February 19 2024
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"Tamil Nadu Grants 50-Year Operation Rights of Cuddalore Port to Private Developer"
The Cuddalore port in Tamil Nadu is set to undergo a significant transformation as the state government prepares to hand over its operations to a private developer for nearly five decades. The decision comes as a part of efforts to revive the port, which had fallen into disuse due to continuous silting.
Despite its challenges, the Tamil Nadu Maritime Board (TNMB) has invested ₹160 crore in infrastructure improvements, including extending the North and South Breakwaters, constructing wharfs, and dredging the approach channel. The port, situated at the confluence of the Rivers Uppanar & Paravanar on the Bay of Bengal, aims to be developed into a deep water, direct berthing, and all-weather port capable of handling small and medium-sized vessels and coastal vessels.
However, the shallow depth of the port poses a significant hurdle for potential private investors. Currently, the depth available at the port entrance is approximately 2.5 meters at low tide, limiting its capacity to handle larger vessels.
Under the proposed plan, the TNMB will grant a license to utilize the port facilities and adjacent land spanning 111.72 acres for a period of 50 years, extendable up to 99 years. The selected developer will be responsible for creating supporting infrastructure, undertaking development, marketing, and operating and maintaining the port.
The project also includes leasing the waterfront, encompassing a 3.60 km stretch from the South breakwater, along with additional government-owned land adjacent to the waterfront. Despite concerns about the port's viability due to its shallow draft, proponents argue that it holds potential as an alternate gateway for the North Central Hinterland of Tamil Nadu, offering reduced time and cost for exporters and importers in the region.
While some experts remain cautious about the project's feasibility, citing the limitations posed by the port's shallow draft and competition from neighboring ports like Karaikal and Chennai, others see potential opportunities for the port's revival and its role in facilitating trade in the region.
HBL