The Union Cabinet’s in-principle approval to establish a major port in southern Tamil Nadu is a shot in the arm for domestic economy, say industry representatives and officials.

The proposal to set up a deep-draught port and related infrastructure at Enayam near Colachel in Tamil Nadu is a “good move in capturing transhipment and deep berthing vessel movement,” said R Dinesh, Head of National Committee on Logistics, Confederation of Indian Industry.

Enayam located on the west coast can be a major transhipment hub for domestic industry as it is a “central point for the entire east and west coast of India. And with related road and rail connectivity, it can increase ease of goods movement and bring down costs for the industry,” he said.

Now the industry looks to Singapore, which is 5–7 days away, for transhipment. Domestic industry can access Enayam in less than two days, he said.

However, speed of execution has to be demonstrated, he said.

A senior government official said the proposed port can be a catalytic factor in the development of the southern districts in Tamil Nadu.

The State will be unique in getting a fifth major port and this one will have the potential to draw major lines.

Once a Special Purpose Vehicle (SPV) is formed by the three major ports in Tamil Nadu — the V.O. Chidambaranar Port Trust, at Tuticorin, Chennai Port Trust, and Kamarajar Port at Ennore — the project is bound to be expedited, he said.

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