Chennai Port plans for using its prime land

The Chennai Port is planning an innovative method to generate revenue from a part of the 600 acres of prime sea-facing land that it owns. On the cards are a mall, multiplex and sea-facing restaurants that will be a first in the country, reports CNBC-TV18. The Chennai Port could soon stop being limited to only shipping, but may also become a shoppers attraction. The port authorities want to develop a one-lakh sq ft plot of land into a mall, which will cater to both locals and international passengers arriving on cruise ships. "Looking at the potential, we thought we should have an international standard passenger terminal with all facilities of shopping and hotels and other things also,” says K Suresh, Chairman, Chennai Port Trust. The mall is going to be part of a large multi-level parking facility that the port plans to develop on three acres of land worth an estimated Rs 500 crore, which would have otherwise gone un-monetised.The multi-level car park is something the port needs desperately, considering it exports about 1.1 lakh cars a year and uses almost 30 acres of valuable quay space to park them. The car park and mall are expected to generate at least Rs 300 crore a year. "While promoting exports, we normally allow a 30-day free time for the cars; that free time and multi-level car park would not give us the revenue that we are looking for so that how the idea of having a shopping mall and hotel and entertainment facilities will come up" feels Suresh. With the real estate prices in Chennai having doubled in the last two years and over 600 acres of port land available, this could be a great revenue source. So if the Chennai Port Authority is successful in developing a part of its water front property into an entertainment district, then it could be a fantastic revenue earning exercise that other port cities around the country could try, especially land-starved Mumbai.