V O Chidambaranar Port Plans Rs 150 bn Outer Harbour Project

06 Mar 2026 CW Team

V O Chidambaranar Port, known as VOC Port, plans to invest Rs 150 bn in an Outer Harbour project to handle the largest container ships and boost transhipment capacity. The chairperson outlined the project during an interview with PTI and said it formed part of an effort to position Tamil Nadu as a major transhipment hub competing with Sri Lanka, Singapore and Indonesia. The announcement framed the investment as aligned with the prime minister's maritime vision.

The development is expected to add four mn t of capacity per annum in two phases by 2030 and will include two new berths capable of receiving the largest container vessels at an 18 metre draft. The scheme foresees two deep-draft terminals, each with a 1,000-metre quay length, designed to accommodate next-generation ships and to improve operational efficiency. Capital dredging and construction of breakwaters are among the core works envisaged.

A tripartite financing agreement has been signed with Indian Railway Finance Corporation and Sagarmala Finance Corporation Limited to support the project, which is being developed under the Hybrid Annuity Mode. The tender process has been floated for offshore reclamation for backup yards and allied facilities required to handle larger ships and expanded container throughput. Officials indicated the scheme aligns with the Government of India's Sagarmala Programme and the PM Gati Shakti National Master Plan.

Officials projected that the Outer Harbour will strengthen India’s global trade connectivity by enabling handling of larger container and bulk vessels, reducing logistics costs and improving turnaround times. The port authority estimated reduced dependence on overseas transhipment hubs such as Colombo and Singapore could save as much as $200 per TEU and deliver foreign exchange savings of approximately Rs 40 bn annually. The development is expected to accelerate industrial activity across Tuticorin, Tirunelveli and Madurai districts.

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