The Indian Railway Finance Corporation (IRFC) has signed a memorandum of understanding (MoU) to support the development of the outer harbour at Tuticorin Port. The agreement sets out a strategic framework for cooperation between the finance provider and port stakeholders to mobilise resources and plan infrastructure works. The initiative is presented as a step to expand berth capacity and to improve handling of larger vessels serving the southern coast.

The MoU envisages coordinated planning for dredging, construction of berths and shore facilities, and enhancement of multimodal connectivity to integrate rail and road links. IRFC will assess financing structures and propose project finance solutions tailored to the phased development requirements. Stakeholders will undertake feasibility and environmental studies to inform detailed design and procurement while seeking to minimise disruption to existing operations. The financing proposals will consider long term options to align repayment profiles with asset life.

Implementation is expected to follow a phased approach with initial preparatory works followed by progressive construction and commissioning of new facilities. The partnership is set to involve close engagement with central and state agencies, port authorities and private sector contractors to align funding, technical expertise and project management. Risk allocation, regulatory approvals and contract structuring will form key elements of the implementation plan.

The development of the outer harbour is aimed at strengthening regional cargo throughput, reducing turnaround times and supporting export and import growth for southern trade routes. The project is framed as part of broader efforts to improve port infrastructure and to enhance the competitiveness of maritime logistics in the region. The MoU is expected to provide a financing and coordination platform to translate planning into actionable projects. Project benefits are expected to extend to ancillary industries and to support supply chain resilience across the state.