Union Minister of Ports, Shipping & Waterways, Sarbananda Sonowal, unveiled significant plans to enhance capacity at Kandla Port in Gujarat, with proposed investments totaling ₹57,000 crore. Key initiatives include a large-scale shipbuilding project and a new cargo terminal.
The flagship initiative is a ₹30,000 crore Mega Shipbuilding Facility, which aims to develop the nation’s technical capabilities to manufacture large Very Large Crude Carriers (VLCCs) and similar vessels with capacities up to 320,000 tonnes DWT. This facility, spanning over 8,000 acres, is expected to produce 32 new ships annually and repair 50 older vessels each year. It will also feature amenities like a marina, fishing harbor, residential townships, and a marine industrial cluster, according to an official statement.
The second initiative is a new cargo terminal with a proposed capacity of 135 million tonnes per annum (MTPA), set to be constructed outside Kandla Creek at an estimated cost of ₹27,000 crore. This terminal, which Business Line discussed in November 2024, will be positioned towards Tuna and utilize the available six kilometers of waterfront. It aims to manage all existing dry bulk cargo terminals, incorporating modern cargo handling technology and more efficient evacuation systems. This development is expected to significantly enhance the turnaround time for vessels transporting liquid cargo. Sarbananda Sonowal remarked that the new facility at Kandla Port would not only expand its operational capacity but also improve efficiency by distinguishing between dry and liquid cargo.
The Deendayal Port Authority (DPA) has been actively pursuing numerous projects to substantially increase Kandla Port’s capacity. A mega cargo terminal capable of handling 2.19 million twenty-foot equivalent units (TEU) is under construction at Tuna Tekra through a public-private partnership (PPP) model. Additionally, plans for a Multi Cargo Terminal at the same site are being considered, which would add another 18.33 MTPA. Furthermore, the development of three new oil jetties is underway, projected to contribute an additional 10 MTPA to the port’s capacity. At Vadinar, the construction of a Single Buoy Mooring (SBM) and two product jetties will bolster liquid cargo handling capability by 24.5 MTPA. There are also proposals for a Ship Repair Facility at Vadinar, which is expected to service 32 vessels per year.
