Chennai International Terminals Pvt Ltd (CITPL), a subsidiary of Singapore’s PSA International, is currently facing severe congestion issues. Over 12,000 containers, both import and export, are stuck at the terminal awaiting evacuation. Trade sources attribute the problem to a lack of manpower and infrastructure, while terminal operators cite the Red Sea crisis and the bunching of container ships as the primary causes.
The terminal is experiencing significant delays, with container trailers forming long queues both inside and outside the facility. The process of issuing Equipment Interchange Receipts (EIR) now takes 6-8 hours, compared to the usual 20 minutes. This delay is partly due to inadequate infrastructure to handle the simultaneous operations of vessel discharge and container unloading.
The Chennai Custom House Agents Association has reported a substantial increase in the turnaround time for evacuating containers, with delays now stretching from the usual two days to five to eight days. Importers are facing uncertainty in accessing their cargo, compounded by increased demurrage and detention fees imposed by CITPL.
Mr. RN Shekar, President of the Chennai Custom Brokers Association, expressed frustration over the deteriorating situation, noting the lack of positive action from CITPL over the past three months. The terminal has struggled to cope with the off-schedule arrivals of vessels caused by the Red Sea crisis, leading to an uneven distribution of vessel arrivals and further congestion.
Mr. S Sathyanaraayanan, Chairman of the Chennai Chapter of the National Association of Container Freight Stations, highlighted the significant increase in trailer turnaround time due to the delays at the terminal. Trucks are often parked idle for hours, either inside or outside the port, waiting for unloading or delivery.
CITPL, which began operations in 2009 and reached the five millionth TEU benchmark in 2017, is taking steps to address the issue. The terminal is increasing ground equipment, deferring planned maintenance, and communicating with shipping lines to stagger their arrival times.
However, J Krishnan of Natesa Iyer LLP argued that the problems are also due to insufficient manpower, infrastructure, and managerial expertise. Addressing these issues requires long-term investment and planning.
In response to the congestion, the Chennai Port Authority has urged all Container Freight Stations to deploy maximum trailers for evacuation and requested Customs and CISF to expedite the movement at Zero Gate. Currently, three container vessels are waiting at outer anchorage for berthing, with CITPL halting further berthing until the inventory is under control.
