The Chennai Port’s Outer Harbour Project will be implemented at a cost of nearly ₹17,700 crore, and the proposal for this will be sent shortly to the Ministry of Ports, Shipping and Waterways for approval. It is to be noted that two firms have already evinced interest in this project.

Sources said that the board has cleared the Detailed Project Report (DPR) prepared by the consultant for the Outer Harbour Project. “After the ministry gives a go-ahead for the project, it will be sent to the cabinet for final approval. Meanwhile, we will apply for the environmental clearance,” a source said.

The project aims to improve the port’s capacity, draw more cargo, and decrease logistics time and cost. It was planned nearly two decades ago, but did not take off in the first two attempts. “But this time, we are hopeful it will work. We have conceived on the EPC (Engineering, Procurement, and Construction) and BOT (Build-Operate-Transfer) model. We plan to pitch in about 40 per cent of the cost, and the rest will have to be borne by the private operator,” another source said.

Chennai Port Authority also plans to conduct road shows to attract more operators and push for the project. The concessionaire who bags the project will get a 45-year period to operate.

Construction of breakwater, reclamation of land yard development, berth construction, dredging, development of container parking yard, and internal rail connectivity are part of the project. Of this, common infrastructure such as the construction of breakwater, dredging and reclamation of land for yard development will be carried out by the Chennai Port Authority.

The project’s first phase, which will allow the port to handle ships with 18 metres of draft, will be ready in five years. Following this, the next phase will be taken up.

According to the authority, 24,000 TEU (Twenty-Foot Equivalent Unit) ultra-large vessels are now dominating the mainline trade and when the draft of the port increases to 18 metres after the completion of the project, many such vessels can directly berth at the port.

The project will also be a good opportunity for the Chennai Port to capture the feeder traffic from the upper east coast. “We shouldn’t let go of this opportunity to develop this project and it will significantly enhance the port’s capacity,” an official said.

Published - August 19, 2026 08:15 pm IST