Vadhvan Port Development Begins With Rs 1,700 Crore Reclamation And Shore Works Tender

Vadhvan Port Project Ltd has invited bids for near shore reclamation and shore protection works, marking the first major step towards building a new deep-water port at Vadhvan near Dahanu in Maharashtra's Palghar district.

The works, valued at Rs 1,700 crore, will follow the engineering, procurement, and construction (EPC) mode. The Vadhvan mega port, which will be constructed on 1,448 hectares of reclaimed land, is projected to cost Rs 76,220 crore.

According to Unmesh Wagh, Chairman of Jawaharlal Nehru Port Authority (JNPA), nearly 200 hectares of land will initially be reclaimed near the shore to serve as the launch site for offshore activities such as breakwater construction and further reclamation. This will act as a landing point for future works and serve as a yard for container storage, tank farms, and railway lines after offshore work completion, reports Economic Times.

The Vadhvan Port Project is a joint venture between JNPA, holding a 74 per cent stake, and the Maharashtra Maritime Board, which owns the remaining 26 per cent. The overall project entails Rs 38,976 crore in investments for basic infrastructure like dredging, reclamation, shore protection works, and connectivity through rail and road.

A significant portion of the project—dredging, offshore reclamation, and shore protection, worth Rs 20,647 crore—will be undertaken through public-private partnerships (PPP) or the Hybrid Annuity Model (HAM). The rest of the infrastructure will be developed under the EPC model. Additionally, private operators of various port facilities will invest Rs 37,244 crore into terminals for containers, coastal cargo, RO-RO, and liquid berths.

The development of the port facilities at Vadhvan will be executed in phases to align with traffic demands. In Phase 1, the port is expected to handle approximately 6.85 million Twenty-foot Equivalent Units (TEUs) by 2030. This capacity will expand to 23.2 million TEUs by the completion of Phase 2 in 2040. The TEU is a unit of cargo capacity for ports and shipping.

The new capacities will boost EXIM trade flow through key corridors such as the India-Middle East-Europe Economic Corridor (IMEEC) and the International North-South Transportation Corridor (INSTC).

This project is expected to stimulate economic activity and generate direct and indirect employment opportunities for approximately 1.2 million people, significantly benefiting the local economy.