Dredging Part of the Enayam New Port Project

The Indian Government has given a green light for the development of the major port at Enayam near Colachel in Tamil Nadu.

According to the government’s press office, the ‘in-principle’ approval for the project was granted by the Union Cabinet chaired by the Prime Minister Shri Narendra Modi.

For the project, a Special Purpose Entity (SPE) will be formed for development of this port with initial equity investment from the three major ports in Tamil Nadu i.e. V.O.Chidambaranar Port Trust, Chennai Port Trust, and Kamarajar Port Limited.

The SPE will develop the port infrastructure including dredging and reclamation, construction of breakwater, ensuring connectivity links etc.

At present, there are only a few ports in India that have sufficient draft and can match global cargo handling efficiencies. Currently, all of India’s trans-shipment traffic gets handled in Colombo, Singapore and other international ports.

Establishing this major port at Enayam will not only act as a major gateway container port for Indian cargo that is presently trans-shipped outside the country, but also become a transshipment hub for the global East-West trade route.

Enayam will also reduce the logistics cost for exporters and importers in South India who currently depend on transshipment in Colombo or other ports thus incurring additional port handling charges.

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