Kamarajar Port Limited is developing a second terminal at a cost of ₹320 crore to meet the increasing export demand of automobiles.

Addressing mediapersons on Monday, MA Bhaskarachar, Chairman and Managing Director, Kamarajar Port Limited (KPL), said automobile exports have increased in the past one year and the second terminal is being developed to cater to the rising demand.

The port handled 2.27 lakh units of automobiles in 2016-17, up 4.91 per cent from 2.16 lakh units in the previous year. In addition to export of vehicles, the port is used for coastal transport of vehicles between Kochi and Kandla ports.

Container and multi cargo terminals will be commissioned as well. Bhaskarachar said the first phase of the container terminal developed in agreement with Adani group at a cost of ₹1,270 crore in two phases and multi cargo terminal developed at a cost of ₹151 crore with Chettinad International Bulk Terminal Private Limited will be operational in a month. KPL has earmarked ₹400 crore as capital expenditure for development of infrastructure projects and has borrowed ₹630 crore ($100 million) to fund the current fiscal’s expenditure, Bhaskarachar added.

The company’s operating income is estimated to be ₹681 crore as against ₹617 crore last year. KPL handled cargo throughput of 30.02 million tonnes, down 9.8 per cent, compared to 32.21 million tonnes in the previous year. Bhaskarachar said the shortfall is mainly due to reduction in coal handled by Tangedco, as the usage of wind and solar energy increased.

Talking about the oil spill due to collision of cargo ships near the port early this year, Bhaskarachar said the company has given recommendations to the Captain Subash Kumar committee. The 15-20 recommendations the committee presented include better utilisation of resources to improve operational efficiency of the port. The port has raised a claim of ₹60 lakh for damages caused due to the spill, he added.

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