Bhavnagar’s CNG Terminal Project Takes Significant Step Forward
Bhavnagar, Gujarat: The much-anticipated Compressed Natural Gas (CNG) terminal project at Bhavnagar has achieved a significant milestone, setting the stage for accelerated development and boosting the region’s economic prospects. The Bhavnagar Port Infrastructure Private Limited (BPIPL) has formally taken possession of 18 hectares of land on the North Quay of the new port owned by the Gujarat Maritime Board (GMB), paving the way for the next phase of the project.
The CNG terminal project, conceived during the Vibrant Gujarat Summit in January 2019, is being developed by a consortium comprising the London-based Foresight Group, Mumbai’s Padmanabh Mafatlal Group, and the Rotterdam-based Boskalis. The consortium signed a Memorandum of Understanding (MoU) with GMB to establish a state-of-the-art CNG terminal at Bhavnagar port. With the recent formal takeover of the designated land, the project is now transitioning into its design preparation phase.
Progress and Developments
According to project insiders, the geo-technical and mathematical surveys for the proposed terminal have already been completed. These surveys, crucial for assessing the feasibility and design parameters of the terminal, returned positive results. With the groundwork firmly established, the consortium has now initiated the design preparation phase. A site office has been set up at the North Quay, marking the onset of physical infrastructure development.
Sources close to the project revealed that the groundwork on the 18-hectare plot is expected to commence by the end of this year. The increased movement of officials and project personnel at the site underscores the momentum gained by the project. The upcoming months are expected to witness more visible construction activities, bringing the ambitious vision closer to reality.
Historical Context and Investment
The development of the CNG terminal is part of a broader initiative to transform Bhavnagar port into a multi-functional maritime hub. In December 2019, a detailed project proposal was submitted for the development of the northern side of Bhavnagar Port and the associated infrastructure. The proposal included not only the CNG terminal but also plans for a state-of-the-art container terminal, a multipurpose terminal for LPG and chemicals, a Ro-Ro (roll-on/roll-off) terminal for cargo ships, and a private terminal.
The Gujarat Maritime Board approved the project proposal, issuing a Letter of Intent (LoI) in September 2020 in the name of Bhavnagar Port Infrastructure Private Limited. The consortium committed a staggering Rs. 4,000 crore towards the development of the project under the BOOT (Build, Own, Operate, and Transfer) policy of the state government. The GMB, meanwhile, will continue to manage the berth on the southern side of the port.
Strategic Importance
Bhavnagar port’s strategic location, particularly its proximity to the Dholera Special Investment Region (SIR), positions it as a critical asset in providing port services to industries establishing operations in the region. The port’s existing connectivity to the northern hinterland through a broad-gauge railway line enhances its appeal as a logistics and trade hub.
The development of the CNG terminal is expected to play a pivotal role in augmenting Gujarat’s maritime infrastructure. The terminal will not only handle CNG but also facilitate the movement of containerized goods, chemicals, LPG, and vehicles through its various specialized terminals. The Ro-Ro terminal, in particular, will enable efficient handling of wheeled cargo, such as trolleys and cars, streamlining trade and transportation processes.
Economic Impact and Future Prospects
The project is anticipated to generate substantial economic benefits for Bhavnagar and the surrounding regions. The creation of direct and indirect job opportunities, coupled with enhanced trade prospects, is expected to contribute significantly to the local economy. The terminal’s operations could also attract ancillary industries, fostering a vibrant industrial ecosystem.
Furthermore, the development aligns with the state’s vision of boosting port-led development and positioning Gujarat as a leading maritime hub in India. The CNG terminal project, with its multi-dimensional infrastructure, is likely to enhance the state’s export-import capabilities and strengthen its maritime trade networks.
As the CNG terminal project progresses into its next phase, the anticipation surrounding its potential economic and logistical contributions continues to build. With the groundwork set to commence soon, Bhavnagar is poised to witness a transformation that could redefine its role in Gujarat’s industrial and maritime landscape. The successful realization of this project will not only enhance the region’s economic prospects but also reinforce Gujarat’s status as a leader in port infrastructure and development in India.
The coming months will be crucial as design plans materialize into concrete developments, and the project moves closer to fulfilling its promise of driving growth and prosperity in the region.
