Ports have historically played a defining role in shaping the economic fortunes of several cities and regions. In India, where nearly 95% of trade by volume moves through sea routes, maritime infrastructure is closely tied to industrial growth, employment, and regional development.
Across the country, cities that have built strong linkages between ports and industry have often emerged as important economic hubs.
Port-linked industrial facilities often generate multiplier effects, supporting small businesses, ancillary industries, and increasing employment opportunities while also expanding the cargo movement through ports.
In many ways, the story of Thoothukudi reflects this broader relationship between ports and industrial ecosystems.
Situated on the southeastern coast of Tamil Nadu, Thoothukudi has long served as an important maritime gateway for southern India. Historical records trace its trading links back to as early as 123 AD.
Today, V.O. Chidambaranar Port continues that legacy, with a cargo handling capacity of around 82 million tonnes each year. Its location along major international shipping routes connecting Asia, Europe and the Middle East give the port a natural logistical advantage, particularly for industries that depend on importing raw materials and exporting finished goods.
India’s own experience shows how port-led development can reshape regional economies. Jawaharlal Nehru Port in Mumbai helped build one of the country’s largest logistics and export ecosystems.
In Tamil Nadu, Chennai Port and Kamarajar Port have supported the growth of the state’s automobile manufacturing corridor, turning Chennai into a major vehicle export hub.
Similarly, Gujarat’s Mundra Port has evolved into one of India’s most commercially significant ports by attracting large-scale investments in manufacturing, energy and logistics infrastructure.
Thoothukudi possesses many of the same structural advantages. Industries that rely on bulk imports and exports naturally gravitate towards port cities where logistics costs are lower, and global supply chains are easier to access.
Copper refining is one such industry. Copper concentrate is typically imported from mining regions around the world, while refined copper is distributed to manufacturing sectors or exported to international markets.
As a result, copper smelters are often located near ports to streamline the movement of raw materials and finished products.
Copper refining was a crucial part of the port-linked industry of Thoothukudi before the closure of the Sterlite Copper Plant in 2018. The facility was among India’s largest copper producers, accounting for nearly 36% of country’s copper output.
Industry estimates suggest that it contributed close to 3% of Tamil Nadu’s GDP while supporting extensive downstream manufacturing activity.
However, the plant’s impact extended beyond production. Its operations were closely tied to the port’s logistics network, allowing copper concentrate to be imported efficiently while refined copper was distributed to domestic industries and international markets while also providing additional employment to locals.
At its peak, the Sterlite facility also played a significant role in driving cargo movement through the port. The plant’s operations drew approximately 10–12 vessels every month, contributing to the port’s strong growth during that period.
However, since the plant’s closure, a visible decline has been observed in business related activity at the port.
Comparisons with other ports illustrate how industrial ecosystems influence maritime growth. Chennai Port, for instance, recorded around 3.33% growth in 2016-17 but between 2020-24 its annual growth fluctuated between 7.46% and 8.31%.
Thoothukudi port, by contrast, recorded 3.18% growth in 2016-17, while its growth between 2020-24 fluctuated between 5.75% and 5.87%. Although the two ports recorded comparable growth prior to 2018, Chennai’s growth has accelerated more significantly as compared to Thoothukudi in the years since.
Chennai’s port-led industrial ecosystem has also supported the rapid expansion of electric vehicle manufacturing, helping Tamil Nadu emerge as one of India’s largest EV production hubs.
Many industry observers believe that if the Sterlite facility had continued operations, Thoothukudi could have attracted a similar influx of industries and developed into another major industrial gateway for southern India.
India, which had earlier been a net exporter of copper, gradually became more dependent on imports. The closure of the plant signaled a significant shift in Thoothukudi’s economy.
As copper is becoming increasingly critical for India’s economic transition, this shift in its dependence has drawn attention to the strategic importance of domestic refining capacity.
Projections suggest that India’s copper demand could reach approximately 3.24 million tonnes by 2030.
In this context, reviving copper refining capacity in Thoothukudi through the proposed reopening of the Green Sterlite Copper plant could serve as an important enabler for both industrial and port development.
A green and sustainable restart could restore cargo movement through the port, strengthen supply chains, and support regional manufacturing ecosystems.
By reconnecting port infrastructure with industrial capacity, Thoothukudi could once again emerge as a stronger maritime-industrial hub while contributing to India’s broader vision of port-led economic growth and resilient supply chains.
(The above article is authored by Srikanth Rajagopalan, Chief Operating Officer (COO) at Finergy Transport Finance Limited. Views expressed are personal and do not reflect the views of the organisation.)