Some excerpts from

MEMORANDUM
PRESENTED TO
Dr. MANMOHAN SINGH
HON’BLE PRIME MINISTER OF INDIA
BY
KALAIGNAR M. KARUNANIDHI
HON’BLE CHIEF MINISTER OF TAMIL NADU
AT CHENNAI
ON 3.11.2006

I. Colachel Port
Colachel, a minor port used mostly by fishing boats/vessels is strategically
located at the Southern tip of India in Kanyakumari District of Tamil Nadu on the
South West coast of the Peninsula along the major shipping routes, making it an
ideal trans-shipment hub of the future.
Port traffic in India has risen significantly. The demand was projected at 325
million tonnes in 2000 and 540 million tonnes in 2005, while the capacity in 2000
was 215 million tonnes only. Thus there is a huge shortfall in the handling capability
of Indian ports. The percentage of the containerised cargo has been increasing from
0.2% in 1980 to 14% in 2005. With the containerisation at 14%, India’s potential is
still not fully realised when compared to the world average
of 75%. This expected increase in containerised cargo would definitely require more
state-of-the-art container handling facilities.
India does not have a container hub port. 87% of containers handled are
trans-shipped through trans-shipment hubs such as Colombo, Dubai and Singapore.
This means a loss of revenue to India as a whole. Against this background, there is
a strong case for a container port at Colachel.
Colachel is strategically placed to serve as a model deep water container
port. The advantages of Colachel as a container port are as follows:
1. It is located along major shipping routes requiring
minimum detour for mainline ships. The
Sethusamudram Ship Canal between India and Sri
Lanka will further reduce travel distance by 450
nautical miles.
2. It boasts of deep water close to shore (17 metres
less than 2 k.m from shore) which would attract
larger vessels.
3. Located at the tip of the Indian peninsula with
almost no littoral drift, maintenance dredging is
negligible and this results in low maintenance cost.
4. Located in the centre of Asia, Colachel could be the
gateway between the East and the West.
By positioning itself as the next regional hub, much of the cargo that is
trans-shipped out of Colombo, Singapore and Dubai can be redirected to Colachel,
bringing revenue to the State.
In 1998, TACID, a Tamil Nadu Government company, submitted a feasibility
report involving a financial outlay of Rs.2251 crores. However, due to nonavailability
of funds, further action on the TACID report was not pursued. Meanwhile
in April 1999, the Hon'ble Chief Minister of Tamil Nadu visited Malaysia and held a
discussion with the Malaysian Government regarding development of Colachel port.
Based on the discussion, the Malaysian Government commissioned a feasibility
study through the Construction Industry Development Board of Malaysia and they
presented a Detailed Feasibility Report for developing Colachel port with an outlay
of Rs.2518 crores. However, the Government of Malaysia raised certain issues on
the financial investment and regretted their inability to take up this project due to the
large investment required and the long gestation period involved for the return of the
investment.
Both the feasibility reports indicated that the economic potential for
development of Colachel port is quite high. The development of Colachel port
project could be taken up by Government of India on the lines of the
Sethusamudram Ship Canal Project, since its viability would be even better after the
completion of the Sethusamudram Ship Canal Project. The Colachel port would
contribute greatly to the development of southern districts of Tamil Nadu which are
industrially backward.
The above facts were highlighted by the Hon'ble Chief Minister of Tamil Nadu
during his visit to New Delhi, to the Hon'ble Prime Minister. As a follow up, the
Hon'ble Minister for Shipping, Road Transport and Highways, Government of India,
visited Colachel on 18.7.2006 and instructed the CMD, Sethusamudram Corporation
Limited, to prepare a Draft Feasibility Report (DFR) and Detailed Project Report
(DPR). Following this, the Tamil Nadu Maritime Board formally requested
Sethusamudram Corporation Limited to prepare the DFR and DPR.
The Government of Tamil Nadu urges the Government of India to take up the
development of Colachel port as a Major Port on completion of Draft Feasibility
Report / Detailed Project Report by Sethusamudram Corporation Limited.

To be even, for a moment, let’s just get into the shoes of somebody like our prime minister and do a review,

What do we have here : Two places Colachel and Vizhinjam competing for a similar status; economics, dollars saved, futuristic needs of the country, super-post Panamax, proximity to international shipping axis etc etc.. Everything seems the same. In this world of competition why favour one over the other (but then why oppose one:-?). If in the end one needs to win (which essentially means that the other must LOOSE), in congruence with the laws of nature “let the smarter ones survive”.
The prime minister has pledged his support for both the projects (which is the right thing to do) and left the game to the ones that play it better.

What is happening: The supporters of Colachel understand that in terms of logistics, Vizhinjam edges out Colachel in terms of proximity to shipping lines and natural depth of the sea, the latter being a very important aspect that imparts a strong base to determine the extent of success and operational profits of a sea port of this magnitude. Thus, as a fillip to their inherent shortcomings, out of the blues came the implementation of “Sethusamudram Ship Canal Project”. Having people at the right places is no minor advantage. What is being done for Colachel is in no way detrimental to people of the place or to the entire country [The TN CM garners local support suggesting that 70000 people in the district alone would get employed.]

So then, if they are doing everything right, where are we lacking. Smarter thinking or smarter execution??

We need to be appreciative of the fact that they are working overtime for the welfare of the people of the land. But then, are we getting a level playing field, I guess not.

With all due respect to the thriving Indian democracy and parliamentary system, is it the difference of sending almost double the number of representatives to the centre of what we do?

Smarter thinking and Smarter execution:
Both seem the same, but are significantly different. We have thought about, planned debated for hours on end (decades to be precise), but now is the right time to strike, when the iron is hot, when Indian economy is booming. There was no time in the past when the need for such an endeavour had aroused so much interest.

Waiting for or even getting hollow supports won’t do us any good. We need to be quick. Off late our representatives are also feeling the heat. It’s now or never. We understand that there are hurdles, but they are created exactly for that purpose of slowing us down. Sadly, we have been affected. The Indian government is spending INR 4.5 billion for the development of a port in Myanmar (Myanmar’s Sittwe port to connect northeastern India with East Asia). So it’s not about the money. They have political compulsions to be kept. So LETS DO IT ON OUR OWN.

Inviting new tenders, talking to financiers, getting plans in place, whatever it takes, let’s work and make this a reality as quickly as possible. There is enough number of malayalis who have envisaged interest in funding this endeavour. There has also been a proposal from a firm to fund a substantially huge part of the project. Let’s get things in place and start rolling. Summarily
1. Expect only necessary approvals from GOI – nothing more nothing less.
2. Modalities of funding needs to be in place at the earliest. Government of kerala should start thinking seriously of going it all alone.
3. Infrastructure is not a kid that will somehow grow up on its own. It needs investment and political will (Do we lack both?) and of course foresight.
4. I remember an article where the author is concerned that Vizhinjam port cannot be sustained since Trivandrum does not have an industrial base. That’s interesting, anybody thought about 25- 30 years down the lane?
5. Atleast this time, hope that ministry of defence does not disown us. Putting pressure at right places is definitely going to help
6. Faster, Faster , Faster ………………………


As a foot note: This time let’s prepare an approval request to the government of India that nobody dares to reject. Let’s be smarter, let nobody outrun us in the race to prosperity, for, we too have a right to fight.

[A big THANKYOU to all the people who are burning the midnight oil for this cause].

Colachel to be developed as major port - TR Balu, What will be the future of Our Vizhinjam Port???

Chennai , Jan. 16

The Tamil Nadu Government has given the go ahead for developing Colachel as a major port and the project is likely to start in December, according to Mr T.R. Baalu, Union Minister for Shipping, Road and Transport.

Addressing a press conference here today, he said the State Government has given the `no objection certificate' for developing Colachel, a minor port in South Tamil Nadu. It needs to notify this under the Indian Ports Act to alienate land.

"By next December, we should lay the foundation stone for the port," he said.

It may be recalled the Sethusamudram Corporation Ltd recently invited bids from consultancy companies to prepare a detailed project report to develop a container transhipment hub at Colachel. The port is close to the international shipping route. Steamers of around 15,000 tonnes can anchor at the port, which is now managed by the Tamil Nadu Maritime Board.

RITES Ltd, a consultancy organisation, in its "Port Vision 2020" report identified Colachel as a suitable port for a container transhipment hub. In 1998, the Tamil Nadu Government prepared a detailed feasibility report, which was updated in 2000 by the Malaysian Government through the Construction Industry Development Board, Malaysia, for a greenfield port costing Rs 2,000 crore.

According to the State Government's Policy Note for 2006-2007, the interest shown by the Malaysian Government did not materialise for want of suitable financial arrangements by them. Considering the potential and the viability of the project, the Chief Minister, Mr M. Karunanidhi, has taken up with the Prime Minister, Dr Manmohan Singh, the issue of developing the transhipment hub.