The inner harbour consist of 14 berths including two container jetties and three coal and oil jetties. The port handles both containers and cruise ships. The container terminal is currently managed by
PSA Sical. The container terminal has 3 quay cranes with 44 m reach and four RTG cranes for stacking the containers. The port also has vast area for storage facilities. It has 5,530,000 Sq m of storage area in its premises. The port also has a passenger terminal for cruise ships. Due to its strategic location in the southern peninsula and assured round-the-clock operations, the port has been the nerve centre of economic activity in south Tamil Nadu. The port currently handles seven per cent of the total container traffic in India and is an important reason for investment in the southern districts of Tamil Nadu. The two container berths in the port are of dimension 370 m length and 12.80 m draught. This limits the port in competing against Colombo port, which has 15 m depth. The Tuticorin Port Trust is investing $1 billion for expansion. This was planned in two phases; the first deepened the harbour from a depth of 10.9 m to the current depth of 12.8 m and the second will increase it to 14.5 m. In addition to expansion of the outer harbour, proposed upgrades include construction of breakwaters and lengthening the approach channel. The port has been upgraded to handle vessels longer than 245 m. The advantages of deploying bigger vessels are that the existing restriction on booking can be eliminated and the transshipment at Colombo port can be reduced. The Tuticorin port has the potential to be an international container transshipment hub given its unique geographical location. Activity at the port has grown at a rate of 17% per year over the last five years. A large portion of the operations in the port has been privatised, including handling at the first container terminal by PSA Sical. A second container terminal has been approved for this port and is in operation. Tuticorin port is becoming a gateway for South India to the US, Europe and the Mediterranean following direct sailings to these regions. Of the total exports from the port, 25% were to Europe, 20% to the US, 20% to East Asia including China, 15% to Colombo, 10% to West Asia and the remainder to the Mediterranean. With this expansion in place, the capacity of the port would double from the existing 20.55 million tonnes to 40.60 million tonnes of cargo. Once dredging is completed, the port will be able to handle fourth-generation container vessels with a capacity of 5,000
Twenty-foot equivalent units (TEUs) to 6,000 TEUs. Currently, the port can handle container vessels up to 3,000 TEUs capacity. For capacity augmentation, Tuticorin Port has taken up various infrastructural development projects under the National Maritime Development Programme (NMDP). The Port achieved a record of handling 5 lakh TEU's in 2012-2013 surpassing the target fixed by Shipping Ministry. The port on 18 February 2016 surpassed the previous fiscal's traffic of 32.41 million tonnes and this feat was achieved 42 days ahead of the fiscal-end. The port had maintained an impressive cargo growth at 17.18 percent. A naval base is to be set up under the ambit of Eastern Naval Command to strengthen the surveillance in the Gulf of Mannar and to safeguard any possible aggression in the region. V.O. Chidambaranar Port Authority officials expressed their willingness to allot a plot on the 'port estate' area for the establishment of the Naval Base. The port is also helping increase the tourism in the region. A new ferry has been commenced between Thoothukudi and Colombo. == Outer harbour ==