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Adani's new container terminal at Ennore is expected to go on stream by March 2016, almost 10 months before schedule.
The terminal being constructed at a cost of Rs 1,270 crore.
The terminal being constructed at a cost of Rs 1,270 crore.
According to industry experts, the Ennore terminal will be one of the key hubs for Adani, which is trying to strengthen its presence in the East Coast.
Adani Ports and Special Economic Zone Limited (APSEZ), India's largest port developer and part of Adani Group, said in its annual report that the first phase was to be completed by Jan 2017, but considering the progress it should be operational by March 2016.
Total capacity of the terminal would be 1.2 million TEUs, of which 0.8 million TEUs will be ready in the first phase.
A senior industry official said once the terminal goes on stream, it will bring down prices as competition between terminal operators at Ennore, Chennai, Kattupalli and others in the East Coast will intensify.
Two positives and one negative may emerge out of the advancement of Adani in the Port sector in south and Chennai, said an industry veteran.
The positives for the industry are better efficiency, faster turnaround and more options at Chennai Port, which handles 1.2 million TEUs. Possible reduction of congestion on the approach roads will also be a plus.
On the negative front, despite the argument that cost factors will be decided by competition and market forces will balance / blunt escalated costs, possibility of a private monopoly cannot be ruled out when Adani comes into many of the strategic ports / terminals in the east coast especially when there are beyond the preview of any regulator on tariffs, he added.
Apart from developing the Ennore terminal, the company has also received the letter of award from the Kerala government for the development of Vizhinjam port.
Sources have said that the company was in talks with L&T to take management control of Kattupalli terminal near Ennore and Gangavaram terminal.
Adani's Mundra Port container handling has increased to 2.71 million TEUs in 2014-15 from 2.39 million TEUs in 2013-14, a 13.8% growth over last year. This also makes Mundra Port the second largest in the country in terms of container throughput after JNPT.
Adani International Container Terminal Private Limited, its 50:50 joint venture with the Mediterranean Shipping Company Group, is engaged in developing, operating and maintaining the container terminal-III at Mundra Port. It handled 9,07,540 TEUs during the financial year 2014-15.
The terminal is one of the most mechanised container terminals of India and boasts at handling the largest container vessel ever to visit Indian Ports.
