High container handling charges could impact the port’s competitiveness against regional transshipment hubs.

VOC Port’s ₹17,167 Crore Outer Harbour Project Faces Tariff Challenge.

VOC Port Authority’s ambitious ₹17,167 crore Outer Harbour project is facing concerns over its financial viability as industry experts warn that high terminal handling charges (THC) may reduce its competitiveness. The proposed 5.2 million TEU container terminal, backed by a Hybrid Annuity Model (HAM) and DBFOT framework, is expected to require significant borrowing for marine infrastructure. Trade sources estimate the port may need to charge around ₹9,000–₹19,000 per TEU to service debt and sustain operations, substantially higher than competing ports such as Colombo, Vizhinjam, and Chennai. Shipping industry representatives caution that elevated tariffs could discourage global carriers, who may continue using lower-cost transhipment hubs. While the project aims to accommodate larger 24,000-TEU vessels and strengthen India’s transhipment capabilities, the tariff structure is expected to be a key issue when the proposal is considered by the Union Cabinet for final approval.