Chennai Port Clears ₹17,700-Crore Outer Harbour Project Proposal

The Chennai Port Authority is set to send a proposal for its ambitious Outer Harbour Project, estimated to cost nearly ₹17,700 crore, to the Ministry of Ports, Shipping and Waterways for clearance after its board approved the project's Detailed Project Report.

Once the ministry grants its approval, the proposal will be forwarded to the Union Cabinet for final sanction. In the interim, port authorities are preparing to apply for necessary environmental clearances for the mega project, which had been originally conceived nearly twenty years ago but stalled during previous attempts.

Two firms have already evinced interest in developing the infrastructure, which will be executed under a hybrid model combining Engineering, Procurement, and Construction (EPC) and Build-Operate-Transfer (BOT) frameworks. Under this arrangement, the Chennai Port Authority plans to fund approximately 40 per cent of the total expenditure, while the selected private concessionaire will fund the remaining capital. The winning operator will be granted a 45-year concession period to operate the facility.

The project scope includes the construction of a breakwater, land reclamation, yard development, berth construction, capital dredging, development of a container parking yard, and internal rail connectivity. The port authority will directly handle the creation of common infrastructure, including the breakwater, dredging operations, and land reclamation for yard development. To attract more global operators to the bidding process, the authority also plans to organize dedicated road shows.

The initial phase of the project is scheduled for completion within five years. Upon completion of this phase, the harbour will provide a draft depth of 18 metres, enabling the port to accommodate 24,000 TEU ultra-large container vessels that currently dominate mainline global maritime trade routes.

Port officials noted that the expanded infrastructure will significantly enhance cargo-handling capacity, curtail logistics costs and turnaround times, and position Chennai Port strategically to capture container feeder traffic originating from the upper east coast of the country.