On 3 December 2007, the Shipping Ministry approved the proposal of setting up a dedicated container terminal at Diamond Harbour on the Hooghly river, within the jurisdiction of Kolkata Port Trust.

The proposed container terminal, with the capacity to handle one million TEUs annually will have three berths and two barge jetties.

Earlier, Kolkata Port Trust had plans of setting up three berths - one each for handling liquid bulk, dry bulk and containers - at Diamond Harbour and accordingly got a project report prepared by a Delhi-based consultancy firm. But the ministry accepted the Capt. Mohan Committee's recommendation to set up only a dedicated container terminal in its meeting by rejecting the port's plan. Thus, all the three berths, each of 240 m length, will handle only containers and not bulk cargo. There will also be two barge jetties, each of 100 m length, making the quayline nearly one-km long.

A two-km long railway line will also be constructed to connect the terminal with the Eastern Railway's network at Diamond Harbour.