VOC Port’s Rs 70 Billion Harbour Project Fails Again

12 Jun 2025 CW Team

The VOC Port Authority’s Rs 70.56 billion outer harbour project in Thoothukudi has once again failed to attract bidders, prompting the cancellation of its tender for the second time. Sources confirm the tender has now been withdrawn, though it may be restructured and reissued at a later stage.

Initially retendered in December 2024, the project had already been shelved once due to insufficient response — with only two applicants, Vedanta and Premier Science and Technology, both of whom were disqualified. Despite relaxing eligibility conditions in the second round to encourage broader participation, the project failed to garner any fresh interest.

The plan was to implement the project on a design, build, finance, operate, and transfer (DBFOT) basis, developing an outer harbour with a total handling capacity of 4 million twenty-foot equivalent units (TEUs) per annum, to be delivered in two stages.

Stage one, with an estimated cost of Rs 44.94 billion, included the development of Container Terminal 1 (Berths I and II), alongside dredging, breakwater construction, and common facilities. Stage two, costing Rs 25.61 billion, aimed to establish Container Terminal 2 (Berths III and IV), also with a capacity of 2 million TEUs.

With container vessels growing significantly in size over recent years — now reaching over 400 metres in length and carrying nearly 22,000 TEUs — the existing VOC Port infrastructure, which can accommodate ships half that size, is no longer sufficient.

The detailed project report highlights that merely modernising the inner harbour and upgrading existing berths will not allow the port to handle next-generation mega vessels. The development of an outer harbour remains critical to meeting long-term cargo growth and global shipping trends.

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