A CPT source disclosed that ADB funding would be needed as the dredging operation and construction of basins will be done using fully mechanised equipment including foreign tugs and launches.

ADB had extended a loan of Rs 450 crore out of Rs 600 crore planned for the first phase of Ennore Port project. Since CPT expects at least 60 per cent of funds required for the Rs 450 crore dredging project will be given directly by ADB, it is hoping that the centre will provide the guarantee to the loan.

The broad contours of the project chalked out by CPT involves dredging of two kilometres of the channel to build two independent basins. Each basinwill have six berths to dock six ships at a time and each berth will be 300 metres long.

As part of the first phase of Ennore Port the CPT has begun construction of two berths in the existing basin. These two berths are earmarked for Tamil Nadu Electricity Board (TNEB) for handling coal.

Under phase two, the plan is to build two more docks with a total of nine berths, one of which is proposed for iron ore handling by the Minerals & Metals Trading Corporation of India (MMTC) which is interested but not confirmed its decision yet.

The source said MMTC is still examining the possibility of having a dedicated berth for iron ore handling. CPT has planned for a draught of 15.5 metres but it seems MMTC wants a 16.5 metres draught to enable it to dock big iron carriers. However, additional costs for increasing the draught depth will have to be borne by MMTC.

MMTC will in any case be required to incur the cost of construction of the iron ore berth of around Rs 25 crore. On top of this it will also have tobuild other facilities like mechanised conveyor system, wagon tip-loads, rail-links, etc, which could cost over Rs 200 crore.

Coal India Ltd (CIL) is opting for two berths to handle coal especially steam coal for use by cement and steel plants. Besides, Andhra Pradesh and Karnataka are adding to their thermal power generation capacity and CIL hopes to cater to their needs as well.

Some two million tonnes of coal are required by Andhra Pradesh. With wagons space in the railways becoming tight, Andhra Pradesh wants its increasing requirement of coal to be sourced from Chennai port but CPT wants to shift all dirty cargo to be handled at Ennore port which is still the preferred nearest point in terms of cost of carrying coal by the sea route.

One berth of CIL can be earmarked to handle five to six million tonnes of coal meant for Andhra Pradesh and Karnataka. The berth will have a capacity to handle eight million tonnes of coal and can thus take care of increased coal requirements of these states. The otherberth will be a common user facility meant for industrial units. The cost of building these berths along with conveyor systems could be around Rs 200 crore.

CPT has also proposed a separate block specifically meant for import of liquefied natural gas (LNG) for the Tidco-promoted LNG terminal and power project. Tidco is acquiring 7,200 acres of land at Ennore for establishing a petrochemical park and the source said part of this will be allotted to the LNG-power project.

Indian Oil Corporation too has shown interest, it is said, in using some berths at Ennore for import and handling of petroleum products.