Vadhavan Port: Transforming India’s Maritime Landscape with a ₹76,220 Crore Investment

Project Benefits

Establishment of a major port on India's western coast with an 18-meter depth to handle diverse cargo types efficiently.

Project Update

Approved on June 19, 2024, the Vadhavan Port near Dahanu, Maharashtra, will be developed by Vadhavan Port Project Limited (VPPL), jointly owned by JNPA (74%) and MMB (26%).

Situated in the Palghar district of Maharashtra, Vadhavan Port will serve as a modern, all-weather deep-water port. The total investment for the project, inclusive of land acquisition, amounts to ₹76,220 crores. The Vadhavan Port Project aims to develop a greenfield deep-draft port that will establish a state-of-the-art container facility, significantly enhancing India’s maritime trade capabilities.

Importance of the Port Project

The Vadhavan Port Project holds significant importance as it has the potential to transform India's maritime trade landscape. Engineered to accommodate large container vessels, the port is expected to handle a total cargo capacity of 298 million metric tons (MMT) annually, including approximately 23.2 million Twenty-Foot Equivalent Units (TEUs) of containers. This capacity will rank it among the largest ports in Asia.
Additionally, Vadhavan Port will play a crucial role in the India-Middle East-Europe Corridor (IMEC), enhancing India’s competitive position in global trade and contributing to the nation’s overall economic development.

Opportunities for Investors

The Vadhavan Port Project offers a compelling opportunity for investors. Companies participating in its development stand to gain from new investment avenues and strategic partnerships. Furthermore, the operation and maintenance of the port will create a considerable number of employment opportunities. Additionally, the project is anticipated to boost Indian exports and significantly contribute to the country's economic growth.

• Vadhavan Port will be designed as a deep-draft facility, capable of servicing large container, bulk, and crude vessels.
• The Jawaharlal Nehru Port Authority has signed a Memorandum of Understanding (MoU) with the Maharashtra Maritime Board for the port’s development.
• The proposed port is strategically located at Vadhavan Point, near Dahanu in Palghar District, Maharashtra.

Site Advantages

• A natural water depth of 20 meters is available just 10 kilometers offshore, with a 15-meter contour located 6 kilometers from the shore, ensuring safe navigation and mooring for modern vessels
• No capital dredging will be required in the navigational channel or harbor area, as an 18-meter draft is naturally available.
• A total of 1,473 hectares (3,639.86 acres) of land will be reclaimed, while 571 hectares (1,410.97 acres) of land—comprising private, tribal, forest, and government land—will be acquired to facilitate rail and road connectivity. Additionally, 1,000 hectares of government land will be allocated for port-related facilities.
• The Mumbai-Delhi Western Railway line is accessible just 12 kilometers away, with flat terrain presenting no natural obstructions.
• National Highway 8, connecting Mumbai to Delhi, is approximately 34 kilometers from the site, while the Mumbai-Vadodara Expressway is only 18 kilometers away; both will be linked to the port via dedicated rail and road infrastructure.
• Vadhavan Port is projected to add a container capacity of 15 million TEUs by 2035, increasing to 23.9 million TEUs by 2040.

Future Outlook

Upon its anticipated completion in 2035, Vadhavan Port is expected to rank as India’s fourth-largest port, following Deendayal Port, Mundra, and Visakhapatnam Port. Its capacity to accommodate container ships ranging from 16,000 to 25,000 TEUs will enable cost-effective trade and facilitate the efficient arrival and departure of large vessels.

Looking ahead, Vadhavan Port has the potential to become a crucial hub for Indian commerce, significantly enhancing exports while reducing import costs. This development will help position Indian products competitively in the global marketplace.

Rationale for a Deep-Draft Port

• The increasing size of container ships necessitates a deep draft of 18 to 20 meters.
• Currently, no port in India possesses the depth required to accommodate the largest container vessels.
• A deep-draft port will leverage economies of scale, significantly reducing logistics costs.
• The Jawaharlal Nehru Port Authority (JNPA) is projected to reach its full capacity of 10 million TEUs, servicing only mid-sized vessels, and cannot be further dredged beyond its existing 15-meter draft.
• To rank among the top 10 container ports globally, a facility capable of handling vessels of 16,000 TEUs and above with a draft of 18 to 20 meters is essential.
• Seven of the top ten container ports are located in China, with Shanghai leading by handling a staggering volume of 40 million TEUs.
• The absence of a deep-draft port leads to shipping lines bypassing India, resulting in increased transshipment of Indian cargo.
• Vadhavan Port has the potential to rank among the top 10 container ports worldwide.

Key Features

The development of Vadhavan Port is part of the Sagarmala Program, an initiative by the Government of India aimed at enhancing port-led development and improving coastal infrastructure to support the country’s growth.

The project aims to establish a greenfield port to accommodate the increasing traffic demands of major ports along the western coast.

Overview of Vadhavan Port:

Vadhavan Port is a proposed deep-sea facility located in the Palghar district of Maharashtra, along the Arabian Sea coast. The construction of the port will be overseen by the Jawaharlal Nehru Port Authority (JNPA). Once completed, it will rank among the deepest sea ports in India, surpassing both the Port of Mumbai and Jawaharlal Nehru Port, and second only to Vizhinjam International Seaport in Thiruvananthapuram. The estimated cost for developing the port is ₹76,220 crore (approximately USD 9.1 billion). The project will be managed by Vadhavan Port Project Limited, a special purpose vehicle in which the Jawaharlal Nehru Port will hold a 74% stake, while the Maharashtra Maritime Board will hold 26%, operating under a public-private partnership.

The port will feature an artificial harbor, with berths and an inner navigable channel protected by breakwaters, while the outer navigable channel will open to the sea. Cargo operations will utilize container berths, liquid berths, roll-on/roll-off (ro-ro) berths, and multipurpose cargo berths within the harbor. A natural depth of 20 meters (66 feet) is available 10 kilometers (6.2 miles) from Vadhavan Point, enabling the port to accommodate large vessels. The harbor will have a depth of 17.5 meters (57 feet), while the wharf will reach 19.5 meters (64 feet), allowing for the docking of Panamax and Capesize ships. The port will feature a maximum draft of 16.5 meters (54 feet) without tidal support; accommodation container ships of up to 24,000 TEUs. The main draft without tidal assistance will be 14.5 meters (48 feet). Additionally, a 4-kilometer-long navigable channel, with a width of 732 meters, will facilitate ship movement within the harbor.