The Centre has decided to restructure the Outer Harbour Container Terminal project at V O Chidambaranar (VOC) Port in Tamil Nadu after two rounds of tenders failed to attract bidders over the past two years.
The revised proposal, estimated at Rs 17,000 crore, has been taken up by the Union Cabinet. The project aims to transform VOC Port into a major transshipment hub on India’s east coast, strengthening the country’s maritime infrastructure and container-handling capacity.
Prime Minister Narendra Modi laid the foundation stone for the project in February 2024. Under the revised implementation model, the port authority will develop common civil infrastructure through the Hybrid Annuity Model (HAM), involving an estimated investment of Rs 11,700 crore.
The restructuring is expected to provide a fresh approach to developing the port’s infrastructure following the lack of response to the earlier tender process. The revised framework places greater responsibility on the port authority for developing essential civil infrastructure.
The expanded terminal is planned to accommodate ultra-large container vessels with capacities of up to 24,000 twenty-foot equivalent units (TEUs). In comparison, the original proposal under the public-private partnership model was designed to handle vessels carrying up to 18,000 TEUs.
The project is expected to strengthen port connectivity, improve cargo-handling capabilities and support India’s ambition to expand its role in global maritime trade.
