Chennai Port's ₹73.91-Crore EXIM Godowns Ready: Three Open, Fourth Nearly Done

Three of the four export-import (EXIM) godowns planned by the Chennai Port Authority have been completed and leased out, a development that adds covered storage capacity for bulk cargo at the port. The warehouses are already in use, storing rice and steel coils.

The authority began work on the four godowns in November 2024 at a total cost of ₹73.91 crore. Officials said the godowns together occupy an area of 18,000 sq.m, with each one spread over 4,500 sq.m. While three are complete, the fourth is nearly finished and is expected to be ready soon.

The warehouses are covered structures designed to hold cargo such as food grains, agricultural produce and other commodities that need clean, dry space so that they are not spoiled by weather conditions.

The project had been scheduled for completion early this year. According to sources, the delay occurred because of the crisis in West Asia. “The supply of roofing materials and fuel were affected by the West Asia conflict. This was accepted by the Ministry as well. Now, the work has been completed on three godowns, and they are being used,” a source said. The authority has not issued a detailed public statement on the revised timeline.

Officials said that although rice and steel coils are currently being stored, they expect other kinds of cargo to arrive at the port in the coming weeks.

The new godowns come as the port has been placing greater emphasis on non-containerised cargo — goods such as food grains, agricultural products and similar commodities that are not shipped in containers. Handling this category of cargo is seen as a way to use port capacity more fully, improve turnaround times and add to revenue. The port has not quantified the expected financial gain from the new warehouses.

Inflows of such cargo have been rising gradually since the launch, about three months ago, of the Non-Containerised Cargo Incentive Scheme (NCCS). The scheme offers concessions to firms that import and export non-containerised cargo, with the aim of encouraging more of it to move through the port.

Bulk and break-bulk cargo is important to Chennai Port's mix of business, and covered storage is often a deciding factor for traders dealing in grains and agricultural goods, which can be damaged by rain or humidity. By providing assured, weather-protected space close to berths, the authority hopes to attract cargo that might otherwise move through other ports.

Questions remain about how quickly the fourth godown will be commissioned and how the leased space will be shared among different users. The authority has not yet disclosed the terms of the leases or the names of the firms using the facilities.

For the wider trade ecosystem, the completed godowns are a modest but concrete addition to infrastructure at a time when Indian ports are competing for bulk cargo. Whether the added capacity translates into a lasting rise in volumes will depend on demand from traders, shipping schedules and the continued working of the incentive scheme.