Kamarajar Port to expand capacity with ₹4,300 crore second container terminal

Major infrastructure push at the Chennai-based port aims to double mother-ship handling capacity and slash turnaround times by 2029.

The hum of activity at Kamarajar Port is set to intensify. Twenty-five years after its inception, the port—a vital cog in the machinery of India’s manufacturing heartland—is moving ahead with a massive ₹4,300 crore project to build a second container terminal. As global trade routes shift and Indian exports gain momentum, the facility is preparing to scale its infrastructure to accommodate a new generation of large-scale maritime logistics.

The expansion roadmap

According to official sources, the project has already garnered significant interest, with five major domestic and global players queuing up to bid. The process is currently awaiting the nod from the Union government’s Public-Private Partnership Appraisal Committee (PPPAC). Once that approval hits the desk—expected by July—the tender will go live in August. The roadmap is clear: the contract is slated for award by February 2027, with construction scheduled to break ground six months later.

The terminal will be developed in two phases, eventually offering a 900-metre quay length and a capacity of 2 million TEUs. The project comes with a 40-year concession period, reflecting the long-term bet on India’s growing trade volumes.

Boosting maritime efficiency

For a port that hit a record 48.41 million metric tonnes (MMT) of cargo in the 2024-25 fiscal year, the upgrade is not just about size; it is about efficiency. Currently, the port handles everything from coal and liquid cargo like LPG and LNG to automobile exports. Its existing container terminal handles 0.8 million TEUs, a figure set to climb to 1.4 million TEUs once phase II of the current setup concludes.

The real game-changer lies in how the port manages massive "mother ships." Today, the port can accommodate one such vessel at a time. Once both berths of the new terminal are operational, that capacity will quadruple to four mother vessels simultaneously. This shift is expected to drastically shrink ship turnaround times, easing the congestion that often plagues major maritime hubs.

Why it matters

This expansion is more than just a local upgrade; it signals a broader shift in how India is positioning its port infrastructure to integrate into global supply chains. By doubling down on its ability to handle larger volumes and bigger ships, Kamarajar Port is positioning itself to be a primary gateway for the Chennai manufacturing cluster. As the government pushes to lower logistics costs, projects like this are essential to prevent bottlenecks. If the timeline holds, the commissioning of the first berth by 2029 will provide a timely boost to the regional economy, ensuring that the port remains competitive as India chases its ambitious export targets.