Kamarajar Port to add 2 million TEUs with Rs.4,288 cr second container terminal expansion

CHENNAI: Kamarajar Port Limited (KPL) is set to add 2 million TEUs of annual container handling capacity through a Rs.4,288 crore second container terminal, as it seeks to cater to growing export-import (EXIM) and transshipment traffic.

The terminal, being developed under the public-private partnership (PPP) model, will be built in two phases. The first phase will add 1.1 million TEUs at an estimated Rs.2,429.32 crore, while the second will add another 0.9 million TEUs at Rs.1,858.94 crore. The project will be implemented on a Design, Build, Finance, Operate and Transfer (DBFOT) basis, with a 40 year concession for the private developer.

It will have a 900metre continuous quay, with 500 metres coming up in Phase I and the remaining 400 metres in Phase II, and will be capable of handling Ultra Large Container Carriers of up to 24,346 TEUs.

The terminal is intended to handle both gateway cargo, which moves to and from the port's hinterland, and transshipment cargo, where containers are transferred from one vessel to another at an intermediate port. The facility will have container yards, pile berths, internal roads, a customs gate complex, administrative buildings and utility infrastructure, besides ship-to-shore gantry cranes and other container-handling equipment.

The expansion comes as KPL seeks to build up its container business as part of a much larger long-term capacity push. Its Master Plan 2047, released in December 2024, envisages increasing the port's capacity from about 57.44 million tonnes to 254.52 million tonnes and expanding the number of berths from nine to 27 by 2047.

The Chennai-Kamarajar-Cuddalore port cluster has separately been identified by the Union government for development as a Mega Port by 2047, with the cluster targeting more than 300 million tonnes of annual capacity.

KPL currently has nine operational berths with a total cargo handling capacity of 58.44 million tonnes. Its berths handle coal, liquid cargo including petroleum, LPG and LNG, automobiles, containers and multi-purpose cargo. The port handled 49.08 million tonnes in 2025-26.

The second container terminal will occupy 111.19 acres, with 61.77 acres earmarked for Phase I and 49.42 acres for Phase II. Construction is scheduled to take 48 months, with 24 months allotted to each phase.