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Union Cabinet Approves 76,000 Cr. Vadhavan Port

On 19th June, 2024 the Union Cabinet approved the greenfield Vadhavan Port which will be developed in Palghar District, Maharashtra. It is estimated to have a developmental cost of Rs. 76,220 crore.

JNPA-MMB JV to Develop Vadhavan Port, JNPA to be Regulating Authority

A Special Purpose Vehicle (SPV), Vadhavan Port Project Limited (VPPL), will execute this project. Maharashtra Maritime Board (MMB) and the Jawaharlal Nehru Port Authority (JNPA) hold 26% and 74% stake in the SPV respectively.

The Port will be operated in ‘landlord model’ with JNPA as the regulating authority.

Vadhavan Port’s 9 Terminals to have 298 MMTPA Collective Capacity

The nine terminal-Vadhavn Port will be developed as an all-weather deep draft port with a capacity of 298 Million Metric Tons Per Annum (MMTPA). The port’s container handling capacity will be approximately 23.2 million Twenty-foot Equivalents (TEU). Development of this project involves reclaiming 1,431 hectare (ha) of land from the sea by constructing an 10.14 Km offshore breakwater.

Seaport Terminal Handling
Representative image

Some of the major components of the port will be:

  • 9 container terminals, each 1,000 m in length
  • 4 multipurpose berths, each 250 m in length
  • 4 liquid cargo berths
  • 1 Ro-Ro berth
  • A coastguard berth

According to the Detailed Project Report for Vadhan Port, the port will be built in two phases. Commercial operation of phase 1 is expected to begin during FY26, while phase 2 is estimated to begin commercial operations by FY33.

Port to be linked with NH-48 and Dedicated Freight Corridor

The port will be connected with roads, highways and railway tracks. Internal roads of 32km will be laid down and eventually merged into the NH-48 (Delhi-Chennai) and the Mumbai-Vadodra expressway. Vadhavan Port will also have connectivity to the upcoming Dedicated Freight Corridor (DFC) line at New Palghar Station.

Significance of the Port – Sagarmala, IMEC, INSTC

The port has significnace beyond its size, import-export (EXIM) trade, and operations. It plays a vital role in making India a pitstop while connecting the rest of the world such as Europe, Middle East, Far East, Africa, the Americas. This also aligns well with the Sagarmala Programme under PM Gati Shakti programme. It will also connect the existing International North-South Transport Corridor (INSTC), and the India-Middle East-Europe Economic Corridor (IMEC) which was announced in September 2023 during the G20 summit in New Delhi.

Apart from that, the port is also estimated to generate 12 lakh formal and informal jobs.