To attract new cargo and enhance the storage of sensitive cargo, the construction of four new EXIM (Export-Import) godowns is under way at Chennai Port.

The work is expected to be completed early next year.

The godowns, being built at an estimated cost of ₹73.91 crore, is crucial for the port to retain the existing cargo as well as to accommodate more clean and sensitive goods such as agricultural products, and food grains, including rice, sugar, pulses, maize, and wheat. The norms of trade demand that these commodities should not be contaminated, and that they have to be kept separately in a clean area.

According to officials of Chennai Port Authority, since coal and iron ore are no longer handled, apart from agricultural products there has been an increased focus on cargo such as steel coil, silica sand, magnesite, fertiliser and barytes.

There is also a greater demand for covered areas for handling cargo items, and exporters and handling agents have been requesting for the same.

“These four godowns sprawl over an area of 18,000 sq.m. (size of each godown is 4,500 sq.m), and the capacity of covered warehouse of the port will increase to 85,000 sq.m. when the project is completed.

“We will be equipped to handle 2-2.5 MTPA (million tonnes per annum) of cargo after this expansion work is over,” an official said.

This could prevent the diversion of cargo to other ports, and fetch additional revenue in terms of vessel and cargo-related charges, officials said.

The funding of the project comes from the Sagarmala scheme of the Centre since the government has been keen on augmenting trade capacity in major ports of the country, including the Chennai Port. It could also help significantly reduce traffic congestion inside and outside the port.