News / $7bn infrastructure project heads list of expansion plans for India's busy ports

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India’s port and related infrastructure development is seeing a frenzied pace of investment, as the economy expands with greater trade growth indicators.

The latest push is a government-led investment programme estimated at some $7bn, for multiple projects in Kandla port, one of the major cargo handlers on the west coast.

Plans include a large shipbuilding facility, costing some $3.5bn, and a new port complex over 8,000 acres at more than $3bn, according to official updates.

“The new shipbuilding facility at Kandla will develop technical capability in the country to manufacture very large crude carriers (VLCCs) or similar class vessels with capacity up to 320,000 tonnes dwt,” India’s Ministry of Shipping noted.

“The facility will have capacity to produce 32 new ships and repair 50 old ships every year.”

In parallel, the ministry noted that the proposed port complex at Kandla was designed to add 135m tonnes of cargo a year to the gateway’s capabilities. And it noted that the development’s proximity to the navigation channel would, with minimal dredging, allow bigger vessels to dock.

The new port plan complements a container terminal concession the Kandla port authority recently awarded to DP World under a public-private-partnership model.  On a greenfield site at Tuna Tekra, 15 miles from Kandla, the $550m project is expected provide a capacity of 2.2m teu annually, and is targeted to go live in late 2027, according to current indications.

Other development plans in the offing at Kandla and/or Tuna Tekra, include a multipurpose terminal capable of handling some 18mn tonnes a year. Additional container capacity is critical to efficiently handling growing volumes out of India’s north-western hinterlands, as berthing window availability at Mundra port remains acutely tight, a problem exacerbated in recent months by Red Sea-linked schedule disruptions.

More than 60% of India’s containerised volumes pass through Nhava Sheva and Mundra, with combined throughput in fiscal year 2023-24 at some 14m teu, of the total 22m teu reported countrywide for the year, industry data shows.

A deepwater habour at Vadhavan, off Nhava Sheva, is another major long-time bet for India’s expanding cargo volumes. This $10bn project has already evoked expressions of interest from several global terminal giants, including TiL (MSC Group), AP Moller-Maersk and DP World.

TiL recently inked a deal with the Nhava Sheva port authority, provisionally offering to invest some $2.5bn in the Vadhavan port.

“This partnership [with TiL Sarl] not only reflects the confidence of global investors in India’s maritime sector, but also ensures the integration of cutting-edge technology, sustainable practices and world-class infrastructure,” said port chairman Unmesh Sharad Wagh.

Containership calls at Indian ports have seen strong traction, due to widespread carrier network expansion.  For example, Nhava Sheva saw 2,255 box ship visits from April through December, up from 2,023 year on year, according to new data.