VOC Port likely to float Outer Harbour Project tender under revised implementation structure

CHENNAI:

The upcoming tender for VOC Port’s Outer Harbour Project is likely to be floated under a revised  implementation structure. The framework, updated from the 2021 version, incorporates committee recommendations and stakeholder inputs and will be released shortly, according to Union Shipping Secretary T.K. Ramachandran.

Speaking at a press conference here on Monday during a workshop-cum-roadshow on the Ministry of Ports, Shipping and Waterways’ initiatives, Ramachandran said the revised framework is part of wider reforms in public-private partnership (PPP) processes across major ports. With the abolition of the Tariff Authority for Major Ports, tariff-setting has shifted to a new market-linked regime. An adjudication board has been constituted to expedite dispute resolution, alongside a conciliation mechanism to encourage settlements before arbitration. Revisions to the schedule of rates are also under way.

The VOC Port Authority in Thoothukudi reissued a request for proposal (RFP) for its Outer Harbour Project in December 2024, after an earlier tender drew little interest. Only two firms—Vedanta and Premier Science and Technology—submitted bids in the first round, but both were disqualified. The eligibility criteria were later eased to encourage wider participation, yet the second attempt also failed to attract bidders.

Planned on a design-build-finance-operate-transfer basis, the project entails dredging and construction of a breakwater, with a total handling capacity of 4 million TEUs (twenty-foot equivalent units) to be developed in two stages. The first phase, costing an estimated ₹4,494 crore, will create a 2-million TEU capacity through Container Terminal I (berths I and II), along with dredging, breakwater works, and common facilities. The second phase, with an additional 2-million TEU capacity at Container Terminal II (berths III and IV), carries an indicative cost of ₹2,561 crore.

The outer harbour is critical for VOC Port, which is constrained by its inner harbour’s capacity. Global container ships have grown rapidly over the past five years, now exceeding 400 metres in length and capable of carrying nearly 22,000 TEUs. VOC Port, however, can accommodate only vessels half that size. According to the detailed project report, mere modernisation and berth optimisation will not suffice—an outer harbour is essential to handle future traffic and vessel sizes.