Government approves port in Tami Nadu’s Enayam

A special purpose vehicle (SPV) will be formed with initial equity investment from the three major ports in Tamil Nadu: VO Chidambaranar Port Trust, Chennai Port Trust and Kamarajar Port Limited.

The SPV be used to develop the port infrastructure, including dredging and reclamation, construction of breakwater and ensuring connectivity links.

Currently, there are only a few ports in India that have sufficient draft and can match global cargo handling efficiencies. Subsequently, all of India’s transhipment traffic gets handled in Colombo, Singapore and other international ports, which costs the country’s port industry.

“Establishing this major port at Enayam will not only act as a major gateway container port for Indian cargo that is presently transhipped outside the country, but also become a transhipment hub for the global East-West trade route,” a government official told The Indian Express.