VOC Port's Expansion Play: Multipurpose Berth to Boost Cargo Traffic

The V O Chidambaranar (VOC) Port Authority in Thoothukudi has taken over the container handling berth previously operated by PSA SICAL Terminals Ltd., following the latter’s premature exit on February 28, 2025. The port authority now plans to repurpose the facility into a multipurpose cargo berth.

However, the transfer of container handling equipment, including quay cranes, remains unresolved due to pricing disputes. ASV Associates, hired for asset valuation, estimated the equipment’s scrap value at ₹24 crore, while the port authority’s internal assessment placed it at ₹20 crore.

Under the original build-operate-transfer (BOT) agreement, PSA SICAL was to transfer all installed equipment to the port authority at no cost after the 30-year license period, set to end in 2028. However, with PSA SICAL exiting three years early and the equipment aging, the port authority has opted not to purchase it and has only assumed control of the berth.

The berth, which includes a 370-meter quay, an 11.7-meter draft, a dedicated approach road, and a 100,000-square-meter storage area, will now be used for handling multipurpose cargo. A formal inauguration took place on Monday, attended by officials from Customs, the port authority, terminal operators, and port users.

In the short term, the berth will accommodate clean cargo vessels waiting at the port’s outer anchorage. For the next fiscal year, the port authority plans to hire an operations and maintenance (O&M) operator to resume container handling at the facility.

News by Rahul Yelligetti.