India’s Kandla Port to undergo major revitalization via ‘momentous’ $6.6 billion investment

The Indian Minister of Ports, Shipping & Waterways Sarbananda Sonowal has unveiled two major infrastructure projects worth ₹570 billion (about $6.6 billion) aimed at enhancing the capacity of Kandla Port in Gujarat, a state on the west coast of India.

As disclosed, the initiative encompasses a ₹300 billion “Mega Shipbuilding Project” and an investment of ₹270 billion going toward a ‘modern’ cargo terminal outside of Kandla Creek, which could contribute to an additional 135 million tonnes per year to the port’s capacity. Minister Sonowal revealed that this endeavor represents a “realization” of Prime Minister Narendra Modi’s ‘Make in India, Make for the World’ vision.

It is understood that the overarching ambition of the projects is to improve port operations, increase efficiency, and drive economic development by supporting both dry and liquid cargo handling, creating new employment opportunities, and reducing turnaround times for vessels carrying liquid cargo.

In an attempt to ‘reshape’ the Kandla Port, the government said that a new one is being developed near the village of Tuna, which is around 17 kilometers away from Kandla. As elaborated, this new structure will be developed using the 6 kilometers of available waterfront and will comprise ‘modern’ cargo handling equipment and ‘efficient’ evacuation systems.

The existing cargo jetties handling dry bulk cargo are said to be planned for an upgrade while other jetties are slated for conversion into liquid jetties. This could allow Kandla Port to manage liquid cargo in a ‘greater’ scope. This is projected to result in reduced liquid cargo-carrying vessels’ waiting times and improved turnaround efficiency.

Moreover, as per the government, the proximity to the navigation channel could minimize dredging requirements, meaning larger vessels may be able to dock ‘more easily’.

Regarding the shipbuilding project at the Kandla Port, the Indian Ministry confirmed that the facility would encompass over 8,000 acres. It is projected this would help develop the technical capability in the country to manufacture very large crude carriers (VLCCs) or similar class vessels with capacities of up to 320,000 dwt.

Specifically, the expectation is that it could support the construction of 32 vessels and the repair of 50 vessels annually.

According to the government, the area is also set to include components such as a marina, a fishing harbor, a township and a marine industrial cluster, which is hoped to bolster trade as well as employment opportunities in the cluster itself.

Shedding more light on the ‘modernization’ of Kandla Port, the Indian government shared that the Deendayal Port Authority (DPA) has also been working on several initiatives to enhance the port’s capacity.

For instance, a new ‘mega’ cargo terminal, boasting 2.19 million TEUs, is under construction at Tuna-Tekra under a public-private partnership (PPP). The circa $510 million investment was made by the UAE-based shipping colossal DP World, which is under a concession agreement with DPA.

To be precise, Hindustan Infralog Private Limited, a joint venture between DP World and the National Investment and Infrastructure Fund, a collaborative investment platform backed by the Government of India, has taken on the project to develop the ‘mega terminal’.

As explained, this terminal has the potential to add a capacity of 18,330,000 tonnes per annum. There are also plans to build three new oil jetties, one single boy mooring (SBM), and two product jetties—being made at Vadinar, some 278.8 km from Kandla Port. The oil jetties are expected to add a capacity of 10,000,000 tonnes per year for liquid cargo handling.

According to the government, a new ship repair facility at Vadinar is being considered, too. If and once completed, it would be able to service 32 ships every year.