Tamil Nadu focusing on port-led development

In order to become a global center for manufacturing, Tamil Nadu is choosing to go by sea. With the recent opening of the Chennai-Vladivostok maritime corridor, the decision to expand the 17 minor ports has attained greater significance.

Under the PPP concept, the state-owned Tamil Nadu Maritime Board is investing 4,000 crore to build a greenfield port at Cuddalore. With 25 berths spread out over 3.6 km of coastline, it can accommodate 40 million tonnes of cargo annually. More than ten years after establishing a port at Kattupalli, 30 kilometers north of Chennai, the state’s maritime authority is now working on this second port.

According to the Tamil Nadu Maritime Board, minor ports in Nagapattinam, Udangudi, and Rameswaram are also being evaluated for expansion in order to spur growth in these areas. Aside from Kattupalli, the move will increase the volume of imports and exports to TN, which are currently handled by the three major ports.

Coastal shipping can significantly reduce transportation expenses. TN needs 120 lakh bales of cotton a year, each weighing 170 kg, and we get this from Gujarat and Maharashtra. If bales are transported by sea rather than by land, it can save 1,500–2,000 per tonne. So, Tamil Nadu is considering in building a deep seaport in south Tennessee and minor ports in the districts of Tuticorin and Kanyakumari for this purpose.

In FY2024, V O Chidambaranar Port in Tuticorin registered 41 million tonnes of trade, compared to over 100 million tonnes handled by Chennai, Kamarajar, and Kattupalli ports combined. Only Kattupalli is run by the Tamil Nadu government. The Union government is in charge of the main ports.

With the opening of the Chennai-Vladivostok maritime corridor, TN will profit from the development of additional ports. Sunil Paliwal, the head of the Chennai Port Authority, claims that increased exports will benefit India’s economy.