Kandla Port Expansion: Shipbuilding Hub and New Cargo Terminal to Redefine Maritime Trade
The Ministry of Ports, Shipping & Waterways announced two transformative projects at the Kandla Port on Tuesday, signifying a pivotal moment for India’s maritime and industrial landscape. These initiatives include a state-of-the-art shipbuilding and repair facility, involving an investment of ₹30,000 crore, and a new cargo terminal outside Kandla Creek, costing ₹27,000 crore. Together, these projects aim to enhance the port’s capacity by 135 million tonnes per annum (mtpa), bolstering the port’s strategic importance.
Mega Shipbuilding and Repair Facility
One of the cornerstone projects unveiled is a shipbuilding and repair facility designed to establish India as a global player in maritime manufacturing. Spanning an expansive 8,000 acres, the facility will enable the construction of large vessels, including Very Large Crude Carriers (VLCCs) with capacities up to 3,20,000 tonnes DWT (deadweight tonnage). According to the Ministry, the facility will have the capability to manufacture 32 new ships and repair 50 vessels annually, significantly strengthening India’s maritime infrastructure.
“The new shipbuilding facility at the Kandla Port will develop technical capability in the country to manufacture big VLCCs or similar class of vessels. This facility will create opportunities for ancillary manufacturing and assembly units, promoting India’s ‘Make in India’ initiative,” the Ministry’s statement read.
The project also includes additional components to support its long-term growth. These include a marina, fishing harbour, township, and a marine industrial cluster. Such developments aim to create an ecosystem that not only supports shipbuilding but also fosters economic activities in the surrounding areas. Minister of Ports, Shipping & Waterways Sarbananda Sonowal emphasized the transformative impact of these projects, stating, “Ports are critical hubs for the 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.”
New Cargo Terminal Outside Kandla Creek
The second major project is the development of a modern cargo terminal outside Kandla Creek. Built along a 6-kilometre waterfront, the terminal will handle all existing dry bulk cargo, ensuring more efficient operations through the use of advanced cargo handling equipment and evacuation systems. The terminal will be instrumental in alleviating congestion at the port, improving turnaround times, and increasing the efficiency of cargo handling.
This initiative is part of a broader restructuring effort aimed at optimizing port operations. By segregating dry and liquid cargo handling, the new terminal will allow Kandla to focus on liquid jetties, thereby improving the waiting and turnaround times of liquid tanker vessels. “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,” Mr. Sonowal remarked.
Ancillary Projects by the Deendayal Port Authority
The Deendayal Port Authority (DPA), which oversees operations at Kandla, has also been spearheading various initiatives to boost the port’s capacity. A mega cargo terminal with a capacity of 2.19 million TEU is currently under construction at Tuna Tekra under the public-private partnership (PPP) model. Additionally, a multi-cargo terminal at Tuna Tekra, which will add 18.33 mtpa to the port’s capacity, is under active consideration.
To further enhance liquid cargo handling, three new oil jetties are being constructed, adding 10 mtpa of capacity. At Vadinar, the DPA is working on the development of a Single Buoy Mooring (SBM) and two product jetties, which will collectively increase liquid cargo handling capacity by 24.5 mtpa. Vadinar will also feature a ship repair facility capable of servicing 32 vessels annually, further supporting maritime operations in the region.
Economic and Strategic Implications
The investments at Kandla Port are set to have a far-reaching impact on India’s maritime economy and industrial capabilities. The shipbuilding and repair facility, in particular, is expected to attract global shipping companies, reducing India’s reliance on foreign shipyards. This project will also generate significant employment opportunities, both directly and indirectly, and stimulate the growth of ancillary industries such as steel, electronics, and engineering.
The cargo terminal, on the other hand, will play a critical role in enhancing the port’s logistics efficiency. With improved cargo handling systems, the terminal will reduce delays and improve the overall throughput of goods. This will not only benefit industries reliant on the port for imports and exports but also strengthen India’s position as a global trade hub.
Moreover, the projects align with the government’s broader vision of creating world-class infrastructure to support economic growth. By leveraging public-private partnerships, the Ministry aims to accelerate project implementation and attract foreign investments, further enhancing India’s competitiveness in the global market.
Challenges and Future Prospects
While the ambitious projects hold great promise, their implementation will require careful planning and execution. Challenges such as land acquisition, environmental clearances, and timely availability of funds must be addressed to ensure the projects’ success. Additionally, developing the requisite skilled workforce for shipbuilding and cargo handling operations will be crucial.
Looking ahead, the projects at Kandla Port are poised to set new benchmarks for India’s port infrastructure. As the Ministry continues to prioritize investments in maritime infrastructure, the success of these initiatives could serve as a blueprint for similar developments across the country.
In conclusion, the announcements made by the Ministry of Ports, Shipping & Waterways mark a significant step towards realizing India’s maritime ambitions. With investments totaling ₹57,000 crore, the projects at Kandla Port promise to transform it into a global hub for shipbuilding, repair, and cargo handling, driving economic growth and fostering industrial development in the years to come.
