After 18 years and two failed attempts, Chennai Port Authority once again plans development of outer harbour project

In the light of rapid industrial development in Tamil Nadu and the neighbouring States, the Chennai Port Authority is once again planning to bring back to life the development of the outer harbour project. They will shortly start a study to find out the financial viability of the project.

This project was first proposed way back in 2007 and at that time, the proposal was to ‘develop a mega container terminal at north Bharathi Dock’ whose quay length was as much as 2 km with four Million Twenty Foot Equivalent Unit (MTEU) capacity on a PPP mode at a cost of over ₹3,000 crore. IIT-Madras carried out a technical viability study for this project as well. Though the Chennai Port Authority floated bids, the project didn’t take off owing to global economic recession, they received a rather poor response. Subsequently, once again in 2013, the Chennai Port restructured the project as ‘development of outer harbour project for handling multipurpose cargoes’ and the estimated cost of this project was revised to ₹5,100 crore. A financial viability study was once again done and they refloated bids in 2014. Since they didn’t receive any response even then, the authorities chose to drop this project.

Now, with a greater number of larger and deep draft ships, due to growing industrial development in the State, transshipment needs of the region and other such factors, this project is being taken up for the third time. If the much delayed Chennai Port-Maduravoyal elevated corridor project is completed it could further attract additional cargo and there arises a need for augmenting capacity at the port.

Officials of Chennai Port Authority said they plan to take it up on ‘design, build, finance, operate and transfer basis’. Though it is technically feasible to develop the project, now, they want to hire a consultant to check on the financial viability and have issued ‘Request for Proposal’ for the same. The chosen consultant will also do a detailed project report, update the technical study, develop a revenue model and will assist the Chennai Port Authority to prepare tenders for this project and in the bidding process as well.

“This project will be developed holistically, keeping in mind the needs of trade and development. The consultant will give us an elaborate plan of the revised cost estimate, the risk sharing arrangement. If all goes well, the project may kick off in about two years,” an official said.