Seven firms show interest in modernising Kamarajar Port's cargo berth
Seven companies have expressed interest in upgrading the General Cargo Berth-1 at Kamarajar Port, a move that is expected to significantly enhance the facility's operational efficiency and cargo handling capacity. The project, estimated to cost ₹221 crore, will be executed under the public-private partnership (PPP) mode.
The Kamarajar Port Limited (KPL), which operates the port located north of Chennai in Tamil Nadu, received the environmental clearance for the project on Tuesday. This clearance marks an important regulatory step, allowing the upgrade work to proceed once a private partner is finalised.
According to sources within the port, the upgrade will increase the berth's capacity from 2 million tonnes per annum to 3 million tonnes per annum. The project is part of the port's broader strategy to diversify its cargo profile and optimise existing infrastructure.
General Cargo Berth-1 was originally developed 14 years ago for the export of cars. It is designed to accommodate 8,000 cars, with a backup area for parking 14,700 vehicles. KPL officials describe it as the largest facility of its kind in any Indian port. In 2022, the port developed a separate General Cargo Berth-2 exclusively for automobile export and import, allowing Berth-1 to be repurposed for other cargo.
Sources said the port intends to modify Berth-1 into a multi-purpose cargo berth that will handle clean cargo such as steel products, cement, tiles, food grains, containers, project cargo, and over-dimensional cargo. The concession period for the private partner is expected to be 30 years, and the selection process may be completed within the next four to five months.
Once the upgradation is completed, the berth is expected to reduce vessel waiting times and strengthen the port's competitiveness. According to KPL, the project will also augment regional and national trade and accelerate industrial growth in the hinterland.
The operational length of General Cargo Berth-1 is 278 metres, with a navigational draft of 12-13.5 metres. It can handle vessels of up to 50,000 deadweight tonnes (DWT), making it suitable for large cargo carriers.
The Kamarajar Port, which began operations in 2001, is a major port on India's east coast. It currently has an annual cargo handling capacity of 58.44 million tonnes. The port is equipped with nine operational berths: three for bulk coal, two for liquid cargo, two for automobile export and import, one for container handling, and one for multi-cargo. The proposed upgrade of Berth-1 will add to this existing infrastructure.
The interest from seven firms reflects the attractiveness of port infrastructure projects under the PPP model, which allows private players to bring in investment and operational expertise while the public authority retains ownership. The project aligns with the government's broader push to modernise ports and improve logistics efficiency under initiatives such as the Sagarmala programme.
Industry experts note that the conversion of dedicated car-handling berths to multi-purpose terminals is a pragmatic approach, especially as automobile export patterns evolve and other cargo categories grow. By enabling the port to handle a wider range of goods, the upgrade is expected to reduce reliance on a single cargo type and make the port more resilient to market fluctuations.
KPL has not yet disclosed the names of the seven firms that have evinced interest. The detailed bidding process is likely to begin after the finalisation of tender documents. The project is expected to be awarded by mid-2025, with construction and operational milestones to be decided in the concession agreement.
Local stakeholders and trade bodies have welcomed the project, saying improved port infrastructure will benefit industries in the Chennai-Bengaluru industrial corridor and beyond. The port's location, about 24 kilometres north of Chennai, provides direct connectivity to major highways and rail networks, making it a key node in the regional supply chain.
