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The project is critical as the region expects huge investments in the automotive, renewable energy, and space sectors.
A day after Tesla's global rival VinFast identified VO Chidambaranar (VOC) Port in Thoothukudi as key to its $2 billion manufacturing unit plans in India, sources revealed that a Rs 7,056 crore outer harbour project at the port is drawing interest from both domestic and global industry leaders. The first phase of the project is expected to be operational by 2028.
According to a source familiar with the development of the outer harbour container terminal project, global players such as Adani Ports and Special Economic Zone, DP World, Jan De Nul, the Anil Agarwal-led Vedanta group, JM Baxi, and Dakshin Bharat Gateway Terminal have expressed interest in the project. The contract is expected to be awarded by March this year.
This project is critical as the region expects huge investments in the automotive, renewable energy, and space sectors, alongside ongoing investments by Vietnamese major VinFast.
The Indian Space Research Organisation is planning its second spaceport in Tamil Nadu's Kulasekarapattinam, while firms including ACME and Singapore's Sembcorp are contributing Rs 36,238 crore in renewable energy investments.
The state government's emphasis on industrialising this region has attracted Tata Solar Power, Vikram Solar, and several others.
The Tamil Nadu government expects about Rs 1 trillion in investments in this area. The envisioned project aims to transform VOC Port into the first transshipment hub on India's East Coast.
When asked about the global interest in the outer harbour project, Susanta Kumar Purohit, chairperson of VOC Port Authority, said, “The bids will be opened on February 11, and the contract will be awarded by March.”
“VOC Port takes pride in being ranked No.1 among India's major ports for its outstanding operating ratio of 27.87 per cent. This business-friendly environment is a clear path to the success of the outer harbour container terminal project. We are receiving interest from many companies for the outer harbour project, both national and international,” Purohit added, without revealing further details about the bidding.
“The outer harbour is a new expansion project designed to increase the port's capacity to accommodate larger container ships. The project involves developing two deepwater container terminals, each 1 kilometre-long, with a draft of 16 metres and a capacity to handle 2 million twenty-foot equivalent unit (TEU) each. The project includes state-of-the-art container handling and advanced logistics infrastructure to efficiently manage 4 million TEU of containerised cargo. This will enable VOC Port to compete effectively with the major container handling ports in the region,” Purohit added.
This comes a day after VinFast Asia's Chief Executive Officer Pham Sanh Chau indicated that Thoothukudi was chosen for its manufacturing unit due to its proximity to VOC Port and the airport, with exports to West Asia and Africa being key priorities.
According to port management, VOC Port benefits from natural advantages such as its strategic location near the East–West International Sea Route, and the distinction of being an all-weather, 24x7 port, in addition to rail-road connectivity and proactive work culture. The international sea route is about 80 nautical miles from the port.
The project will be developed in two phases, with a concession period of 45 years instead of the usual 30 years. The operator is exempted from paying any revenue share to the port for the initial 10 years and is given a 15-year window to meet the minimum guaranteed throughput obligations.
“This provides ample room for building and sustaining the business without any financial burden. The project is modelled on 40 per cent gateway volumes and 60 per cent transshipment volumes, unlike competing ventures,” Purohit added.
Feature Presentation: Rajesh Alva/Rediff.com
