Chennai Port Outer Harbour Project DPR Cleared at ₹17,700 Crore

The Chennai Port Authority board has cleared the Detailed Project Report for the Outer Harbour Project, an infrastructure initiative estimated to cost nearly ₹17,700 crore. The proposal will shortly be submitted to the Ministry of Ports, Shipping and Waterways of India for formal approval.

Following clearance from the shipping ministry, the proposal will be forwarded to the Union Cabinet for final sanction. In the meantime, port officials will initiate the application process for mandatory environmental clearances. Two private firms have already expressed interest in the initiative.

The project is designed to expand the port's cargo handling capacity, attract greater shipping volumes, and reduce overall logistics time and costs. Although the development was conceived nearly two decades ago, it failed to take off during two previous attempts. Officials have now structured the development under a combined Engineering, Procurement, and Construction (EPC) and Build-Operate-Transfer (BOT) model.

Under this financial framework, the Chennai Port Authority plans to contribute approximately 40 per cent of the total project cost, while the remaining expenditure will be funded by the selected private operator. The concessionaire awarded the contract will secure operating rights for a 45-year period. To engage additional operators and generate broader market interest, the port authority plans to organize commercial road shows.

The project scope includes the construction of a breakwater, dredging operations, land reclamation for yard development, berth construction, the setup of a container parking yard, and the addition of internal rail connectivity. The Chennai Port Authority will directly execute the common infrastructure works, specifically the breakwater construction, dredging, and land reclamation.

The first phase of the development is scheduled for completion within five years. Once finished, it will enable the port to accommodate vessels requiring an 18-metre draft, clearing the way for subsequent phases.

Port officials noted that 24,000 TEU (Twenty-Foot Equivalent Unit) ultra-large container ships increasingly dominate mainline international trade. Increasing the port's operating draft to 18 metres will allow these large vessels to berth directly in Chennai. The authority also expects the expansion to help capture significant feeder traffic originating from the upper east coast of India.