Chennai port revives ₹8,000 crore outer harbour project

Chennai Port Authority has revived its ambitious ₹8,000-crore outer harbour project, aiming to transform the port into a hub capable of handling the world’s largest vessels. The first phase of the project is expected to be operational by 2031.

Planned to be developed seaward, beyond the existing harbour line, the outer harbour will significantly expand capacity, enhance cargo handling efficiency, and reduce logistics time and costs. Designed with a draft of over 20 metres, it will enable Chennai Port to accommodate ultra-large container ships of more than 20,000 TEU capacity — a major leap in capability for the eastern coast.

According to officials, the project will be developed on a Design-Build-Finance-Operate-Transfer (DBFOT) model, with a 45-year concession period. A transaction advisor will soon be appointed to conduct a detailed feasibility study, and the concessionaire is expected to be selected by the end of 2026.

Construction will take place in multiple phases. The initial phase will cater to vessels with an 18-metre draft, while later stages will upgrade infrastructure to handle ships with drafts up to 21 metres, incorporating advancements in maritime technology along the way.

The project’s scope, as outlined in the Request for Proposal (RFP), includes the construction of breakwaters, land reclamation for yard development, berth and container yard construction, road and rail connectivity, dredging of basins and channels, installation of handling equipment, and provision of navigational aids, tugs, and other floating crafts.

This marks Chennai Port Authority’s third attempt to bring the outer harbour vision to life. Initially conceived in 2007 as a mega container terminal north of Bharathi Dock, the project aimed to create a two-kilometre quay and 4 million TEU capacity facility but failed to attract investors. A renewed effort in 2013 also fell short.

The latest revival reflects India’s growing industrial activity, rising transshipment potential in the region, and evolving trends in global shipping. The timing coincides with the progress of the Chennai Port–Maduravoyal Elevated Corridor — a key infrastructure project designed to streamline port access. The corridor will feature dedicated levels and multiple ramps to segregate port traffic from city vehicles, easing congestion and ensuring smoother cargo movement as Chennai’s maritime operations expand.