Deliberations on privatising the Kamarajar Port - formerly known as Ennore Port - are progressing and it may soon be listed by 2027, the officials say.

Kamarajar Port Limited is a government-owned port handled by the Chennai Port Authority, which is under the Ministry of Ports, Shipping, and Waterways. The Authority had earlier given in-principle approval to divest a stake in Kamarajar Port through an initial public offering (IPO).

As for the Chennai Port, the Authority continues to own the land and infrastructure, even though key operations have been partially outsourced.

"As of now, the major terminals at the Chennai Port are handled privately. Enhanced private participation would ensure more competition and transparency in fixing tariffs," an official told The Secretariat.

In line with the Maritime India Vision (MIV) 2030 and the Maritime Amrit Kaal Vision (MAKV) 2047, the privatisation bids form part of the larger agenda of transforming the maritime sector through enhanced private participation.

Why Are Ports Privatised?

The shift from bureaucratic management to commercial operations reflects an effort to enhance efficiency.

Several non-major ports in India have been completely privatised. These include the Gangavaram Port, Krishnapatnam Port, and the Pipavav Port. Mundra Port in Gujarat is considered to be India's largest private port.

But the Central government continues to retain the land and ownership of the major ports that have adopted the Public-Private Partnership (PPP) model, also known as the landlord port model.

The policy shift from complete government autonomy to private participation is driven by the Major Port Authorities Act, 2021, which aimed at enhancing port operations by providing more flexibility to private entities. 

Tamil Nadu has a 1,069 km-long coastline, the second longest in India after Gujarat. It has 3 major ports and 14 non-major ports.

Environmental Impact

Increased private participation in ports has, however, been linked to environmental consequences.

This was evident from the Vizhinjam project in Kerala, where the impact of heavy infrastructure development following privatisation caused severe coastal erosion, adversely impacting local fishing communities.

Since the Chennai Port is directly located on the Coromandel Coast of the Bay of Bengal, environmentalists have warned of the consequences of large-scale construction after privatisation.

While the transition to a PPP model may ensure capacity addition and productivity improvement, it should not come at the cost of the environment, they say. 

At the moment, the Chennai Port Authority has a cargo handling capacity of 136 million metric tonnes per annum (MMTPA).