VOC Port to invest Rs 15,000 cr in Outer Harbour project to be a transhipment hub of South India

VO Chidambaranar Port will invest Rs 15,000 crore in its ambitious Outer Harbour project, which aims to increase overall cargo handling capacity and position Tamil Nadu as a major transhipment hub of southern India, a top executive has said.

The investment is in addition to the Rs 1,500 crore capex, which has been set aside to upgrade port infrastructure, along with clean projects and deployment of new-age technologies, VOC Port Authority Chairperson Susanta Kumar Purohit told PTI in an interview.

VO Chidambaranar Port (VOC Port) is one of the major ports in India, located at Tuticorin in the southern part of Tamil Nadu, with an annual cargo handling capacity of 82 million tonnes per annum (MTPA). It is also one of the oldest operational ports, with trade links dating back to 123 AD.

Sharing future growth plans, Purohit said, "Outer Harbour is our ambitious project, aligned with Prime Minister Narendra Modi's vision for the maritime sector. Our ministry aims to make VOC Port a major transhipment hub of southern India".

To tap the growing opportunities, VOC Port Authority is investing close to Rs 15,000 crore in the Outer Harbour project, which will add another 4 million tonne per annum (MTPA) cargo handling capacity in two phases by 2027 and 2030, he said.

The port aims to compete with international hubs located in other countries, such as Sri Lanka, Singapore and Indonesia.

As part of the expansion, two berths will be developed with a draft depth of 18 meters, which will be sufficient to handle even the largest container ship.

The berths will be able to handle vessels up to 2.5 lakh deadweight tonnage (DWT). In shipping, DWT is a measure of the total weight of a vessel.

On the status of the project, Purohit said a detailed project report prepared for the Outer Harbour project has been submitted to the government for approval.

VOC Port has already signed a tripartite agreement with Indian Railway Finance Corporation (IRFC) and Sagarmala Finance Corporation Limited to secure the necessary funding, the official said in reply to a question related to finance sourcing.

The rapid growth in container cargo traffic at VOC Port and good hinterland connectivity have created an urgent need to increase handling capacity and accommodate larger vessels. Hence, the Outer Harbour project is proposed with upgraded vessel handling capacity for present and future trend vessels, he added.

This project will meet rising demand, reduce vessel turnaround times, and enhance the port's competitiveness in handling both South Indian gateway cargo and transhipment cargo by attracting larger vessels operating along the nearby East-West international shipping route.

Expanded capabilities are expected to generate substantial employment across the region and serve as a key hub for southern Tamil Nadu's Tuticorin-Madurai industrial corridor, benefiting key sectors such as textiles, chemicals, and manufacturing.

From April 2025 to January 2026, cargo handling at VOC Port increased by 6 per cent to 35.97 million tonnes.

Container volumes rose 9.40 per cent to over 7.16 lakh TEUs in the April-January period of the current fiscal year.

The port imports and exports a variety of commodities, including LPG, wind blades, coal, iron ore, fertilisers, and agri products, from countries like South Africa, Oman, the UAE, Russia, Ukraine, Indonesia, Malaysia, Australia, and Canada, among others.