VOC Port to Invest Rs 15000 Crore in Outer Harbour Expansion to Boost Capacity

VO Chidambaranar Port in Thoothukudi will invest Rs 15000 crore in a phased Outer Harbour expansion project aimed at boosting cargo handling capacity and strengthening Tamil Nadu’s role as a key transhipment hub in southern India, a senior official said.

The investment will be implemented in two phases, with completion targeted for 2027 and 2030. It is in addition to Rs 1500 crore already set aside for infrastructure modernisation, clean energy initiatives and the deployment of advanced technologies across port operations.

The proposed Outer Harbour is expected to add an additional four million tonnes per annum of cargo handling capacity. As part of the project, two new berths with an 18 metre draft will be developed, enabling the port to handle large container vessels of up to 2.5 lakh deadweight tonnage.

A detailed project report has been submitted to the central government for approval. The port has also entered into funding arrangements with financial institutions to secure the required resources for timely execution, officials said.

The expansion comes amid steady growth in cargo and container traffic. Cargo handled at the port rose 6 percent to 35.97 million tonnes during April 2025 to January 2026 compared with the corresponding period a year earlier. Container volumes increased 9.40 percent to more than 7.16 lakh TEUs during the same period.

Officials said rising container traffic and strong hinterland connectivity have put pressure on existing facilities, necessitating additional infrastructure to reduce vessel turnaround time and accommodate larger mainline vessels operating along the nearby East West international shipping route.

The port handles a diversified cargo mix including LPG, coal, fertilisers, wind turbine components, iron ore and agricultural products. It maintains trade links with countries such as South Africa, Oman, the UAE, Russia, Indonesia, Malaysia, Australia and Canada, among others.

The Outer Harbour project is expected to enhance the port’s competitiveness in handling both gateway cargo for southern India and transhipment cargo. It is also projected to generate employment opportunities, support ancillary industries and strengthen the Tuticorin Madurai industrial corridor.

With expanded capacity and deeper drafts, the port aims to position itself as a cost effective alternative to overseas transhipment hubs while reinforcing Tamil Nadu’s long term maritime infrastructure growth strategy.