The Chennai Port Authority is reviving the outer harbour project for the third time after it was first mooted 18 years back. The Authority has decided to conduct a study to determine the financial viability of the project. If found financially viable, the project may be awarded on Design, Build, Finance, Operate and Transfer (DBFOT) basis.

It has issued a global tender to select a Transaction Advisor for Development of New Outer Harbour.

In 2007, a proposal was conceived to “Develop a Mega Container Terminal at North of Bharathi Dock”, having a 2 Km quay length with 4 million Twenty Foot Equivalent Unit apacity, under PPP mode on DBFOT basis, to handle larger container vessels. Tenders were invited but due to then Global Economic recession, bid response was poor and low revenue share was offered. The tender was cancelled then.

The project was restructured in 2013 as “Development of Outer Harbour Project at Chennai Port” for handling multipurpose cargoes (clean cargoes only), at an estimated cost of ₹5,100 crore. Bids were invited in 2014, but there was no response from potential bidders. Hence, the proposal was dropped.

However, the project taken up for the third is being revived taking into consideration the industrial development in Tamil Nadu and neighbouring states; transshipment needs of the region; evaluation of the global shipping industry and the upcoming Chennai port – Maduravoyal elevated corridor. The project will not only augment the connectivity but also bring additional cargo and will continue to play an active role in the overall regional growth; a strong need for capacity addition is felt at Chennai Port, the tender said.

Published on June 28, 2025