The project is estimated to cost Rs 491.76 crore, of which Chennai Port will contribute around Rs 100 crore and the remaining amount would be met by BOT (built operate transfer) operator.
According to a ministry release, quay length of the terminal will be upto 826 metre, consisting of east quay and south quay-III. Out of this, around 400 metre of length can be dredged to a depth of 13.5 metre, which would be sufficient to handle fourth generation vessels.
The terminal is expected to handle one lakh TEUs (twenty feet equivalent units) in the second year, which would reach the optimum level of six lakh TEUs from seventh year onwards.
The project is expected to generate revenue of Rs 20 crore in the second year, which is expected to gradually increase to Rs 120 crore.
The second terminal would provide an alternative to the existing terminal, enhance the service standards, and likely to bring down the cost of exim trade.
According to estimates by various agencies, the container traffic in Chennai port is expected to reach one million TEUs by 2010-11.