The government today approved a Rs 3,686 crore mega container terminal project at Chennai Port to be built under public-private-partnership mode.
The project, under the 'design, build, finance, operate and transfer (DBFOT)' basis, was cleared by the Cabinet Committee on Infrastructure.
"The project has a concession period of 30 years," an official statement said.
The terminal would handle container traffic volume of 4 million TEU per annum. The TEU (twenty foot equivalent unit) is a measuring unit for the vessel loads. The project is likely to be completed in seven years, it said.
"With the new terminal, Chennai Port can compete with international ports and reduce the need for trans-shipment from Singapore and Colombo..It will also boost trade in the region," Shipping Minister G K Vasan said.
The terminal project is part of the government's Rs 1 lakh crore plan for expanding port capacity and development of waterways.
The programme will cover Centrally-owned 13 major ports.