Chennai Port to revive outer harbour project for 3rd time, DPR to be prepared by June

The Chennai Port’s ambitious outer harbour project, which is acceptable to beryllium revived for the 3rd time, volition necessitate astir ₹10,000 crore. Its elaborate task study is expected to beryllium acceptable by June this year.

It is indispensable to execute this project, arsenic the larboard aims astatine handling immoderate of the world’s largest vessels, whose carrying capableness exceeds 20,000 TEU (twenty-foot equivalent unit).

Since the existing interior harbour has definite limitations with respect to draught and berth length, the outer harbour — planned with deeper draught and modern berthing facilities — volition assistance grip specified vessels.

The project, which volition beryllium implemented successful a phased manner, besides promises to summation capacity, amended logistics time, and trim cost.

Recently, the Chennai Port Authority awarded a declaration to a transaction advisor.

While a DPR was prepared galore years ago, immoderate parts of the papers request to beryllium revised. “The layout and different specified aspects volition stay the same. It is the outgo and fiscal exemplary that necessitate modifications. Initially, it was estimated that the task would necessitate astir ₹8,000 crore, but the revised estimation stands astatine astir ₹10,000 crore,” a root said.

The larboard is inactive finalising the fiscal exemplary to instrumentality the project. One of the reasons the task did not instrumentality disconnected earlier was the immense concern it required from the steadfast securing the contract.

Hybrid Annuity Model

But now, the larboard is looking astatine the Hybrid Annuity Model, a public-private concern framework. “If this exemplary is approved by the Board, the larboard volition transportation successful 60% of the cost, portion the remaining 40% volition travel from the firm,” different root said.

After this, the Chennai Port Authority indispensable get situation clearance and support from the Union government. Only past tin the larboard telephone for bids for the task construction.