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Economy News, Latest Economic News Today | The HinduBusinessLine

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VOC Port to invest ₹5,720 crore to deepen harbour, target...
By T E Raja Simhan · 2026-06-12 · via Economy News, Latest Economic News Today | The HinduBusinessLine
At the current draught levels, the VO Chidambaranar Port is unable to accommodate container ships of around 15,000 TEU capacity

At the current draught levels, the VO Chidambaranar Port is unable to accommodate container ships of around 15,000 TEU capacity | Photo Credit: SPECIAL ARRANGEMENT

The VO Chidambaranar Port Authority in Thoothukudi is up a set to take up a ₹5,720-crore project to deepen its harbour basin and approach channel, a move aimed at enabling the VOC port to handle larger container, bulk and tanker vessels and strengthen its competitiveness against regional rivals.

The project will increase the port’s draught —the depth of water required for a ship to float— to 15.2 m from the current 12.8 m. It also includes modification of the port entrance, construction of six new berths and upgradation of existing berths, according to sources.

Once completed, the enhanced depth will allow the port to handle fully laden Panamax vessels carrying up to 85,000-90,000 tonne of dry bulk and general cargo, as well as very large container ships with capacities of up to 14,000 TEUs.

Dredging will be carried out in front of coal jetties, berths, container berths and along the approach channel. The approach channel length will increase from 3.8 km to 10.04 km after the works are completed.

Larger vessels

Industry sources said the project has become critical as global shipping lines increasingly deploy larger vessels. At the current draught levels, the port is unable to accommodate container ships of around 15,000 TEU capacity, they add.

The move is also seen as necessary to remain competitive with nearby transshipment hubs such as Vizhinjam International Seaport and Colombo, both of which have depths exceeding 15 m.

“If we don’t carry out the deepening, we will continue to handle smaller ships and lose the race in future. This project should have been taken up long ago,” an official said.

Vivek Raja of Pearl Shipping in Thoothukudi said that the project will enhance the port’s competitiveness, prevent cargo diversion to other nearby regional ports, and support the growing industrial and export sectors of southern Tamil Nadu. Given Tamil Nadu’s expanding role in global manufacturing and exports, this project is critical to sustaining long-term economic growth and trade competitiveness, he said.

According to Jagannarayan Padmanabhan, Senior Director & Global Head- Consulting, Crisil Intelligence, the development can help accommodate larger container, bulk and tanker vessels. The additional depth will enable the port to attract bigger mainline ships, improve vessel utilisation, lower unit logistics costs and enhance the port’s competitiveness as a gateway for South India, he said.

Given Thoothukudi’s strategic location near the East-West international shipping route, the project can strengthen the port’s ability to attract direct vessel calls, reduce dependence on transshipment hubs and support higher cargo volumes over the long term, he added.

Published on June 12, 2026