The Madras Port & Dock Employees Union (CITU) has strongly objected to the Centre’s proposal urging the Chennai Port Authority (ChPA) to invest five per cent equity in the proposed Bharat Container Line (BCL), citing serious concerns over the port’s financial stability and employee welfare.
Union vice president T. Narendra Rao, referring to media reports, said the Government plans to float BCL with equity participation from several state-owned entities — Shipping Corporation of India (SCI) and Container Corporation of India (CONCOR) holding 30 per cent each, Sagarmala Finance Corporation 20 per cent, Jawaharlal Nehru Port Authority 10 per cent, and Chennai Port Authority and V.O. Chidambaranar Port Authority contributing five per cent each.
While acknowledging that reducing India’s dependence on foreign shipping lines is a commendable objective, the union cautioned against shifting the financial burden onto already stressed Major Port Authorities. Rao pointed out that ports such as Chennai, Cochin, Mormugao, Kolkata and Mumbai are grappling with severe financial constraints, largely due to substantial pension liabilities.
Chennai Port Authority alone is responsible for safeguarding the interests of nearly 2,500 serving employees and around 15,000 pensioners. Forcing the port to invest equity in BCL, the union argued, could adversely affect its financial viability and push it back into a cycle of fiscal stress, jeopardising the welfare of employees and pensioners.
The union suggested that BCL should instead be funded through direct budgetary support or investments routed via financially stronger CPSEs and specialised maritime finance institutions. Rao noted that SCI and CONCOR are Navratna CPSEs with relatively robust balance sheets, while Sagarmala Finance Corporation has been specifically established to finance maritime projects.
“Chennai Port Authority is not financially positioned to absorb fresh equity risks unrelated to its core port operations,” Rao said, urging the Ministry of Ports, Shipping & Waterways to desist from compelling ChPA to invest in Bharat Container Line and to safeguard the port’s financial stability.
