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Tuticorins V.O. Chidambaranar Port is gearing up to seize lucrative investment opportunities amidst a flurry of major projects in the region. The port has recently floated global bids worth approximately Rs 7,056 crore for an ambitious outer harbour project.
The proposed initiative encompasses the development of two container terminals, entailing crucial tasks like dredging and constructing a breakwater at the port. Once completed, these terminals are expected to have a combined capacity of handling 4 million twenty-foot equivalent units (TEUs). The expansion drive is strategically aligned with the upcoming ventures in the vicinity, including Vietnamese giant VinFasts Rs 16,000 crore electric vehicle manufacturing unit, the Indian Space Research Organisations (ISRO) second spaceport in Kulasekaranpattinam, Tamil Nadu, and Singapores Sembcorps whopping Rs 36,238-crore investment in renewable energy projects.
The overarching objective of this project is to elevate V.O. Chidambaranar Port into a premier transshipment hub on Indias east coast. The port authority has initiated the Request for Qualification (RFQ) process for the outer harbour container terminal project, which is structured as a public-private partnership with viability gap funding from the Government of India. The project will operate on a design, build, finance, operate, and transfer basis, according to an official statement.
With the demand for the Indian Container Market anticipated to reach 25 million TEU by 2025, the government is actively promoting the development of terminals along the east coast to capture transshipment traffic currently routed through other hubs like Colombo and Singapore. Presently, Jebel Ali handles 2 per cent, Colombo 60 per cent, Singapore 10 per cent, and Port Klang 3 per cent of Indian transshipment containers.
Strategically positioned, V.O. Chidambaranar Port enjoys proximity to 16 Container Freight Stations (CFS) and over 2.5 million square feet of warehouse space within a 5 km radius. Additionally, the port has been designated as one of the three exclusive hubs for Green Hydrogen and Offshore Wind Power in India. Furthermore, it boasts excellent road connectivity via a six-lane Harbour Express Road, facilitating seamless access to hinterland markets such as Tirupur, Coimbatore, Madurai, and Tirunelveli.
Despite the promising prospects, there have been concerns within the port industry regarding the projects cost estimates, reflecting ongoing discussions regarding its feasibility and financial implications. |
