Rs 23,432-cr project at Tuticorin port to be executed in four phases

The total capacity addition would be 328 million tonnes

The VO Chidambaranar Port Trust at Tuticorin would take up the Rs 23,432-crore outer harbour project in four phases. A detailed project report was released by Union Minister for Shipping GK Vasan today.

The outer harbour project was announced by Finance Minister P Chidambaram, who also hails from Tamil Nadu, in the Union Budget in February 2013.

The project would feature 17 berths and upon completion would add 328 million tonnes to the total capacity, according to a port release.

The project would enable the port to berth big ships, leading to lower cost of shipping and handling cargo by achieving economies of scale, said Vasan.

The first phase includes development of five berths (two for coal and three for container) at an estimate cost of Rs 11,635 crore . The capacity addition would be 97.5 mtpa (million tonnes per annum).

In 2012-13, VOC Port handled more than 28  million tonne cargo and container traffic of 476,000 TEUs. In the midst of recession, up to December 2013, it handled about 21 million tonne and 369,000 TEUs respectively.

With 10 thermal power stations of 15,000 Mw capacity coming up in and around Tuticorin, the port has already taken action to increase the coal handling capacity by initiating projects like construction of North Cargo Berth (NCB)-I  and II,  a shallow water berth for handling cement and construction of NCB III and IV, according to Vasan.  

Upon completion of these major schemes, the port's capacity will increase from 33.34 million tonnes   to more than 85 million tonnes in the next two years, said Vasan.

The minister also commissioned the Dakshin Bharat Gateway Container Terminal, which was set up at the cost of Rs 312.23 crore. The container handling capacity of the berth is 600,000 TEUs.

<b>Rs  26,000 cr worth of projects in 2013-14</b>
The shipping minister said a record number of 32 projects during 2012-13 with an investment of about Rs 6,766 crore were awarded in the port sector. These projects would add 136 mtpa to the port capacity.  Eight of these projects are in Tamil Nadu, of which four were initiated for the VOC port at an outlay of over Rs 800 crore .     

In 2013-14, 30 projects at an outlay of about Rs  26,000 crore are envisaged to add 288 mtpa to the port capacity.  Nine of these (about Rs 7,400 crore) have been sanctioned for major ports of Tamil Nadu.  

One project, development of NCB-III for handling thermal coal and rock phosphate at an outlay of Rs 420 crore pertains to VOC Port.