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Vadhavan Port: PM Modi to lay foundation stone for India’s largest deep water port; read the significance, details of the over ₹76,000 crore project

With a 20-metre natural draft, Vadhavan Port can accommodate the biggest ships on the earth and will serve as a crucial commercial route connecting Europe, West Asia and India

Prime Minister Narendra Modi is set to attend the ground-breaking ceremony of ₹ 76,200 crore Vadhavan port on 30th August. The union cabinet approved the construction of this largest all-weather port in the country in June. It is situated around 130 km north of Mumbai, close to Dahanu on Maharashtra’s west coast. With a 20-metre natural draft, it can accommodate the biggest ships on the earth and will serve as a crucial commercial route connecting Europe, West Asia and India. An official from the Modi administration stated that it will rank among the top ten ports worldwide.

The Vadhavan Port Project Limited, a special purpose organization established by the Maharashtra Maritime Board (MMB) and the Jawaharlal Nehru Port Authority (JNPA) with respective shareholdings of 74% and 26% is developing the project. The partnership represents a significant milestone in India’s port development plan.

The first phase is scheduled for completion by 2029 and the second and final phase is anticipated to be finished by 2039. Unmesh Wagh, the chairperson of JNPA, informed that there are big plans to link the port to the road and rail network. The project will be connected to the Delhi – Mumbai Expressway via a link expressway and will form a major part of the proposed India – Middle East – Europe Economic Corridor (IMEC). It will be connected by a 32-kilometre road to the Mumbai-Ahmedabad Highway and a 22-kilometre route to the Mumbai-Vadodara Highway. A 12-kilometre railway line will also tie it to the designated railway freight route. Ministry of Ports, Shipping and Waterways also posted a video on X (formerly Twitter) offering details about the ambitious venture with captivating graphics.

A total of 17,471 hectares are estimated to be covered by the port, of which 16,906 hectares are inside its boundaries. It is expected that the Vadhavan Port will relieve some of the strain on the Jawaharlal Nehru Port, which is India’s largest port for handling containers at the moment. Sustainable practices are being used in the construction of Vadhvan Port, with an emphasis on reducing environmental effects and upholding strict ecological requirements.

The port will feature nine 1,000-meter-long container terminals, four multifunctional berths, comprising a coastal berth, four liquid cargo berths, a berth for roll-on, roll-off, or Ro-Ro ships and a berth for the Coast Guard. 1,448 hectares will be reclaimed from the sea to build the 20-metre draft needed to host large vessels. A total of 298 Million Tonnes Per Annum (MTPA) of cargo handling capacity, including about 23.2 million Twenty-foot equivalent units (TEUs) of container handling capacity is intended to be created. The port will serve the industrial hinterlands of Gujarat, Rajasthan, Madhya Pradesh, Chhattisgarh, the National Capital Region, Maharashtra, and other central and north Indian states.

AECOM India prepared the Feasibility Report for the port, and a joint venture of AECOM India and Pentacle prepared the Detailed Project Report. Enkay Enviro Services is the Environmental Consultant for the project.

Why is the port significant?

Ports will be essential to India’s transition to become a developed country with the third-largest economy by the year 2047. The country needs its biggest port Vadhavan more than ever as India’s port industry is growing to accommodate more vessels. The port intends to become a premier maritime entry point that will support big cargo ships, deeper drafts, and larger container ships, all of which will increase commerce and economic growth in the nation. The port will have state-of-the-art port management systems, effective cargo handling facilities and deep berths. It will strengthen India’s standing as a hub for international trade and improve its marine connectivity.

Proposed design of the port (screengrab from video by ministry)

“The world-class maritime terminal facilities will promote public-private partnerships (PPP) and leverage efficiencies and modern technologies to create state-of-the-art terminals capable of handling mainline mega vessels plying on international shipping lines between the Far East, Europe, West Asia, Africa and the Americas. Vadhavan Port, on completion, will be one of the top 10 ports in the world,” the union cabinet stated in June.

“As the starting point of the India-Middle East-Europe Economic Corridor (IMEC), the mega port in Vadhavan will serve as a doorway for India’s trade with Europe and the Gulf region. It will also serve as a cost-efficient gateway for India’s trade with Central Asia and Russia via the International North-South Transportation Corridor (INSTC),” Amitabh Kant, India’s G20 Sherpa informed in July. Due to its capacity to accommodate large ships and its vicinity to Gujarat, Rajasthan, Northern, and Central India, Vadhavan will have a competitive advantage over other ports. Direct access to the Dedicated Freight Corridor (DFC) will lower the transit time and cost of rail cargo to the port. Furthermore, the port’s capacity to dock large ships will save logistical expenses.

Layout plan of the plan (Source: Project’s DPR) 

“Given India’s aspiration to emerge as a manufacturing alternative to China, the factory of the world, building mega ports like Vadhavan to support manufacturing resurgence is a foregone conclusion,” expressed Manish R Sharma, sector leader, infrastructure, PricewaterhouseCoopers. Leaders in the industry believe that the Vadhavan port will spur greater growth. Chairman of the Visakhapatnam Port Authority M Angamuthu conveyed, “The Vadhavan port will act as an impetus to Indian maritime industry. It will help us in benchmarking our port too.”

Boosting India’s economy

Vadhavan Port will have substantial regional and national economic effects. The port project will likely create a large number of jobs, including thousands during the construction phase alone. Once it is functioning, the port will need a sizable workforce to fill various positions, including administrative and dock workers. The port will indirectly add jobs by promoting expansion in other sectors like transportation, warehousing, and logistics. It is expected to create 12 lakh job opportunities.

India’s import and export capacities will be improved by the port’s capacity to handle larger ships, which could lead to an increase in the volume of international trade with the nation. Larger ships are more effective at transporting cargo, which might save Indian companies money on shipping. The region’s industrial development is likely to be accelerated by the port. Industrial clusters could grow in the port’s environs, especially in industries with high import or export dependency.

Detailed layout (Source: Feasibility Report of the port)

More foreign direct investment might move to the area and the nation as a whole as a result of the enhanced trade and infrastructure. The port’s contemporary amenities may increase India’s appeal to foreign shipping firms and increase trade with the country’s coastlines. Vadhavan is a big port that will contribute significantly to government coffers by charging a variety of fees and levies.

Opposition to the port

Locals, meanwhile, have resisted the port’s construction ever since an Australian corporation originally suggested it in 1997. It was pushed by the Congress-led United Progressive Alliance I government, but according to Gautam Chatterjee, the former director general of Maharashtra’s shipping ministry, it had to be shelved when several environmental concerns were raised by activists and locals.

Protestors at Vadrai Beach, Palghar, line up to spell a phrase meaning “Stop the Vadhavan Port” in October 2022. (Source: Hindustan Times)

The Vadhavan Bandar Virodhi Sangharsh Samiti (VBVSS) was formed by the local peasants and fishermen to oppose the project on the grounds that it would be bad for the environment and their means of subsistence. They cited the declaration of Dahanu as an ecologically fragile area and the prohibition on the establishment of environmentally harmful industries by the Union Ministry of Environment and Forests.

“There will be immense damage to the fishing industry, farming and environment. The port will be located 6.5 km in the sea. They will reclaim 4,000 acres of land. It will affect water currents, the rains and the breeding of fish. To protect the port, they will also construct a breakwater. Our fishing will be destroyed,” argued VBVSS leader Narayan Patil.

“We are going offshore, not cutting trees. We will, in fact, plant trees in the area,” Unmesh Wagh pointed out in response to the objections. The port is essential to achieving the goal of the national government, he proceeded, which is for India to become a developed nation by 2047. “JNPA and the Mundhra port will saturate in the next three years, and we require a big port for export-import trade. It is coming at the right time and the right place,” he maintained.

Inauguration of other important projects

The Prime Minister is scheduled to inaugurate and lay the foundation stone for around Rs 1,560 crore of 218 fisheries projects. More than five lakh new jobs in the fishing industry are expected as a result of the initiatives. At an estimated expense of Rs 360 crore, he will also introduce the National Roll Out of Vessel Communication and Support system. ISRO is developing a vessel communication and support system that will provide two-way contact with fishermen at sea.

He will also launch further projects, such as the construction of integrated aquaparks and fishing harbours. These initiatives will be carried out in several states. He will establish the groundwork for significant initiatives involving the infrastructure of the fishing industry, such as the construction of fish markets, fish landing centres, and the development, modernization, and upgrading of fishing harbours.

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