The Vadhavan greenfield port, which is under construction near Dahanu in Maharashtra, will double India’s container trade from the current levels upon completion. Scheduled to be finished by 2034, it is projected to be among the top 10 ports in the world, according to Unmesh Sharad Wagh, Chairman of the Jawaharlal Nehru Port Authority (JNPA). He termed the port a “game changer” for the country and the region.
“This will be world’s top 10 port once both the phases are completed in 2034. By 2029, four terminals will be completed and five terminals will be added by 2034. This will double India’s container capacity, from what is there today,” Mr. Wagh told The Hindu recently. While the project conceptualisation was there since 1991-92, it has not made progress. But it will be a reality soon, he stated.
The project with an outlay of ₹76,000 crore is being constructed by Vadhavan Port Project Limited (VPPL), a joint venture between JNPA and Maharashtra Maritime Board (MMB) with shareholding of 74% and 26%, respectively.
‘India needs another port’
Talking of the significance of the port, for which the foundation stone was laid by Prime Minister Narendra Modi on August 30, Mr. Wagh said the western side and northern side of the country represent 75% of EXIM (export-import) container trade.
Noting that other regions have other ports and do not require that much capacity for the present and future, he said Mundra port and JNP do 65% EXIM trade and both are almost full, running at 90% capacity. “India desperately needs another port, otherwise it will not take care of the growing demand of the EXIM trade. This port will take care of that. We have all clearances in place,” he added.
The National Highways Authority is executing some of the peripheral works currently. Apart from that, nothing is required outside, as everything is inside the sea, 10 km offshore. “There is no displacement, no flooding, no land acquisition for the port, no environmental damage as not a single mangrove is being touched,” Mr. Wagh said.
This is a deep draught port with 20m depth.The largest vessel ever produced in the world will call on this port and that will save 25% or $100 because currently, the vessel goes to ports in Jebel Ali, Colombo, and Singapore, and then cargo is shipped onwards by smaller vessels. That extra money will not have to be shelled, he said. Further, the new port will also act as a transshipment port for other neighbouring countries, he added.
The Vadhavan port will comprise nine container terminals, each 1,000 meters long, four multipurpose berths, including the coastal berth, four liquid cargo berths, a Ro-Ro berth, and a Coast Guard berth.
Currently, about 25% of the country’s cargo is transshipped, and of that 20% is from the western side, Mr. Wagh explained. With the new port on the western seaboard, 100% of this cargo will come to the new port. They don’t have to go anywhere else when they can do gateway here. Along with that, they will also bring cargo for other countries, he observed.
In addition, for northern and western cargo there will be a 25% reduction in logistics costs and also nearer to the northern hinterland. For bigger vessels, it is directly 10% cheaper, and a distance of 150km is saved on the northern side. “This is a game changer for India,” Mr. Wagh said.
The project involves the reclamation of 1,448 hectares of area in the sea and the construction of 10.14 km of offshore breakwater and container/cargo storage areas. It will create a cumulative capacity of 298 million metric tons (MMT) per annum, including around 23.2 million TEUs (Twenty-foot equivalents) of container handling capacity.
Of the total outlay of ₹76,000 crore, the JV would invest approximately ₹30,000 crore, while the rest will come in through public-private partnership.
No environmental impact
There is no environmental issue for the project, Mr. Wagh stressed. The only impact is on 30 sq. km of fisheries will be effected but the overall project is in 10 lakh sq. km out of which only 30 sq. km will be out of bounds. “We are compensating them. Maharashtra has the best policy and we are adopting the same. All clearances are in place. We are just starting construction.”
The turnaround times at Indian ports have significantly improved in recent years. At JNP, the turnaround time is 22 hours, better than the global average, and it will reduce further at Vadhavan, the Chairman said. It is a green project from inception, with shore power, green power, green e-vehicles.
The project envisages the creation of a total capacity of 298 million metric tonnes per annum (MMTPA); as also EXIM trade flow facilitation through the proposed India Middle East Europe Economic Corridor and the International North South Transportation Corridor; accommodation of mainline mega vessels operating on international shipping routes connecting the Far East, Europe, the Middle East, Africa, and America, the government had stated earlier.
In addition, given the long tradition of seafaring in the country, India is aiming to be among the top 10 ship-building countries by 2030 while aiming to be in the world’s top five by 2047. “We are also confident that the rich resource pool and a vibrant democratic set-up will embolden our ports to handle 10,000 million tonnes of cargo by 2047, Minister of Ports, Shipping & Waterways, Sarbananda Sonowal said at the closing ceremony of Sagarmanthan, the two-day dialogue held last month.
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