PPPAC Clears Restructured ₹17,167 Crore Outer Harbour Container Terminal Project at V.O. Chidambaranar Port, Thoothukudi With 5.2 Million TEU Capacity
The Outer Harbour Container Terminal project at V.O. Chidambaranar Port has received approval from the Public Private Partnership Appraisal Committee under a restructured plan valued at ₹17,167 crore, substantially higher than the earlier ₹7,055.95 crore estimate. The project will be developed through a public-private partnership, with private participation in both construction and long-term operations.
The revised scope includes construction of an outer harbour, breakwaters, capital dredging, land reclamation, and associated infrastructure to create deep-draft berths capable of handling large container vessels. Terminal capacity has been increased from 4 million TEUs to 5.2 million TEUs, positioning Thoothukudi as a major container and transshipment hub.
The cost increase primarily reflects updated dredging estimates based on actual port dredging experience rather than earlier theoretical assessments. Once completed, the project is expected to enable direct calls by large international container ships, reduce reliance on foreign transshipment hubs such as Colombo and Singapore, and strengthen India's maritime logistics infrastructure. The project will now move toward further approvals, concession finalisation, and the bidding process.