A Rs 7,056 crore outer harbour project by VO Chidambaranar (VOC) Port in Tuticorin is garnering interest from domestic and global majors in the sector, such as Adani Ports and Special Economic Zone, Singapore’s PSA International, Dutch major Van Oord, JM Baxi, and JSW, among others, according to sources close to the development.
The project aims to capitalise on the newfound investor interest in the region, spurred by mega investments such as the Rs 16,000 crore electric vehicle manufacturing unit by Vietnamese major VinFast, the Indian Space Research Organisation’s second spaceport in Tamil Nadu’s Kulasekarapattinam, and Singapore’s Sembcorp’s Rs 36,238 crore investment in renewable energy.
The envisioned project aims to elevate VOC Port into the inaugural transshipment hub on India’s East Coast.
The VOC Port Authority has already issued the request for qualification.
This initiative involves viability gap funding (VGF) from the Government of India and is structured as a public-private partnership on a design-build-finance-operate-transfer basis.
“In the pre-application conference, we have seen interest from PSA, Adani, Bolloré Logistics, JM Baxi, Van Oord, and ISPL. JSW and Premier Infrastructure are also in touch with the port,” said a source aware of the development.
This project includes the construction of two container terminals, involving preparatory work such as dredging and building a breakwater at the port, with a capacity to handle 4 million twenty-foot equivalent units (TEU).
With the state securing the top rank among 30 others in the national planning agency’s Export Preparedness Index, the Tuticorin port emerges as a vital element in propelling Tamil Nadu towards its goal of becoming a $1 trillion economy by 2030.
Multiple big-ticket projects recently launched in Tuticorin and nearby districts include, other than VinFast, India’s first International furniture park, Tata Power project, and Sembcorp project, among others.
Anticipated to reach 25 million TEU by 2025, the demand for the Indian container market is substantial.
The Government of India is actively promoting the development of existing terminals on the East coast to capture the transshipment traffic currently routed through Colombo and Singapore.
Presently, Jebel Ali (United Arab Emirates) handles 2 per cent, Port Klang (Malaysia) 3 per cent, Singapore 10 per cent, and Colombo (Sri Lanka) 60 per cent of Indian transshipment containers.
The winner will get a 45-year concession period with a revenue share holiday for the initial 10 years and a 15-year performance guarantee holiday.
According to a source, the advantage of this port is its strategic location, as it is closest to the peninsula, around 80 nautical miles from the arterial East-West International Maritime Route, along with its all-weather port nature.
Strategically positioned, the port also enjoys the advantages of being close to 16 container freight stations and over 2.5 million square feet of warehouse space within a 5 kilometre radius.
The port has been designated as one of the three exclusive hubs for green hydrogen and offshore wind power in India.
The government is offering a VGF of up to Rs 1,950 crore for the project.
Two berths, totalling 2,000 metres in quay length, will be developed in two distinct phases (1,000 metres each).
