The Union Minister of Ports, Shipping & Waterways of India announced initiatives to boost the capacity at Kandla Port with investment of more than ₹57,000 crores.
Two major announcements were made that include construction of a new “Mega Shipbuilding Project” with an investment of ₹30,000 crores. In addition, the development of a new cargo terminal outside of Kandla creek at an investment of ₹27,000 crores which will add an additional 135 MTPA capacity to the Kandla Port was announced.
Shipbuilding facility at Kandla Port
The new shipbuilding facility at the Kandla Port will develop technical capability in the country to manufacture big Very Large Crude Carrier (VLCC) or similar class of vessels with capacity up to 3,20,000 tonnes DWT. The facility will have capacity to produce 32 new ships and repair 50 old ships every year.
Spread over an area of more than 8,000 acres, the new facility will have components like Marina, Fishing Harbour, Townships and Marine Industrial Cluster. The project is likely to boost trade interests as well as employment avenues in the region, especially in the ancillary manufacturing and assembly units to come and operate in the cluster.
Port facility to expand capacity
Additionally, a new port is being developed outside of the Kandla Creek, towards Tuna. This new port will be developed using the 6 kms available waterfront. With an investment of ₹27,000 crores, an additional capacity of 135 MTPA will be developed to the existing capacity of Kandla Port. The new port will handle all existing cargo jetties handling dry bulk cargo, with modern cargo handling equipment and more efficient evacuation systems.
According to the Indian Government, this will allow Kandla to be converted into Liquid Jetties, hence, building tremendous scope to handle liquid cargo. This will tremendously improve the waiting of Liquid Tanker Vessels and improvement in the Turnaround time of liquid vessels. Considering the new port’s proximity to the navigation channel, the dredging requirement will come down considerably, allowing bigger vessels to dock here.
Ports are critical hubs for nation’s economy, serving as vital links to support growth and drive economic development. Enhancing capacity in port infrastructure is essential to meet our expanding ambitions.
…said Shri Sarbananda Sonowal, Union Minister of Ports, Shipping & Waterways of India.
Sonowal continued by commenting that the new facility at Kandla Port will not only significantly augment its operations but also enhance efficiency through the segregation of dry and liquid cargo.
Additional projects
The Deendayal Port Authority (DPA) has also been working on a number of other projects on mission mode to enhance capacity of Kandla Port significantly. A new cargo terminal, with a capacity of 2.19 million TEU, is being constructed at Tuna Tekra under PPP mode.
Moreover, a new multi cargo terminal at Tuna Tekra is also under consideration. This will add 18.33 MTPA to the existing capacity.
Three new oil jetties are in the process of being constructed, which will further add 10 MTPA capacity. One Single Buoy Mooring (SBM) and 2 product jetties are also being constructed at Vadinar. This will further shore up the liquid cargo handling capacity by 24.5 MTPA.
A ship repair facility project at Vadinar is also under consideration which will be capable of servicing 32 vessels per year.
To remind, in November 2024, it was reported that India has been in the process of establishing a Protection & Indemnity (P&I) Club to enhance independence for Indian businesses and the economy.