Kandla Port Capacity Expansion Announced in 2025

In January 2025, developments were announced for Kandla Port, aiming to enhance its capacity and operational capabilities. This initiative aligns with Prime Minister Narendra Modi’s vision of ‘Make in India, Make for the World’, focusing on boosting domestic manufacturing and global trade.

Key Facts About Kandla Port

• The port was established in 1931 with the construction of an RCC Jetty by Maharao Khengarji.
• It is also known as Deendayal Port
• This port is situated on the West Coast of India in the Gulf of Kutch, Gujarat.
• It is one of the twelve major ports in India.
• It serves northern states like Jammu & Kashmir, Uttar Pradesh, Madhya Pradesh, and Rajasthan.
• It is ranked as India’s No. 1 Port in 2007-08 and has maintained this position for 14 consecutive years.
• In 2016, it became the first Major Port in India to handle 100 million metric tonnes (MMT) of cargo in a single year.
• It is currently the largest port in India by cargo volume.

Investment Overview

The total investment for Kandla Port’s expansion exceeds ₹57,000 crores. This includes ₹30,000 crores for the Mega Shipbuilding Project and ₹27,000 crores for a new cargo terminal. These projects aim to modernise the port infrastructure and increase its capacity .

New Mega Shipbuilding Facility

The Mega Shipbuilding Facility will focus on constructing Very Large Crude Carriers (VLCCs) with a capacity of up to 3,20,000 tonnes DWT. It will produce 32 new ships annually and repair 50 existing vessels. The facility will span over 8,000 acres, incorporating various components such as a marina, fishing harbour, townships, and a marine industrial cluster.

New Cargo Terminal Development

A new cargo terminal will be developed outside Kandla creek, adding 135 MTPA to the port’s capacity. This terminal will handle existing dry bulk cargo operations and will feature modern cargo handling equipment. The new infrastructure will facilitate more efficient evacuation systems and enhance the port’s capabilities.

Impact on Liquid Cargo Handling

The expansion will convert existing jetties to handle liquid cargo, improving turnaround times for liquid tanker vessels. The proximity of the new port to navigation channels will reduce dredging needs, allowing larger vessels to dock efficiently.

Broader Economic Implications

The initiatives at Kandla Port are expected to create numerous job opportunities, especially in ancillary manufacturing and assembly sectors. This expansion is crucial for India’s economic growth, aligning with the goal of achieving an Atmanirbhar Bharat by 2047.

1. VLCC – Very Large Crude Carrier, a large oil tanker.
2. MTPA – Million Tonnes Per Annum, a measure of cargo capacity.
3. PPP – Public-Private Partnership, a collaborative investment model.
4. TEU – Twenty-foot Equivalent Unit, a standard measure for container capacity.
5. SBM – Single Buoy Mooring, a mooring system for tankers.

Future Projects and Developments

The Deendayal Port Authority is advancing several projects to further enhance Kandla’s capacity. A mega cargo terminal at Tuna Tekra is under construction, aimed at handling 2.19 million TEUs. Additionally, a new Multi Cargo Terminal is being considered to add 18.33 MTPA to the existing capacity. Three new oil jetties and a Ship Repair Facility project are also in the pipeline, aimed at boosting liquid cargo handling by an additional 34.5 MTPA.

Month: Current Affairs - January, 2025

Category: Economy & Banking Current Affairs