The Indian Government has approved a colossal INR 76,000 crore project to build a deep-sea port at Vadhavan, near Mumbai, pivotal to the India Middle East Europe Economic Connectivity (IMEEEC) initiative. Designed to handle 23.2 million TEUs, the port will accommodate mega cargo ships and reduce logistics costs by USD 50-100 per TEU. With robust road and rail connectivity, the port will enhance India's trade capacity and serve as a transshipment hub. The project, executed in two phases by 2040, is expected to generate significant economic benefits and jobs, transforming India's trade infrastructure.
The Indian Government has cleared a massive INR 76,000 crore project to construct a deep-sea port at Vadhavan, near Mumbai. This ambitious project promises to be a game-changer for India's trade and infrastructure landscape. Let's delve into the key aspects of this development.
The Vadhavan port will be a crucial component of India's larger vision-the India Middle East Europe Economic Connectivity (IMEEEC) project. This greenfield port, meaning it's built on undeveloped land, is designed to handle massive cargo ships with a capacity of 23.2 million TEUs (Twenty-foot Equivalent Units). It will act as a "feeder port" for IMEEEC, facilitating efficient cargo movement to strategic locations like Chabahar Port in Iran (capacity: 2.5 million TEUs) and the International North South Transport Corridor (INSTC).
The port boasts a significant draft of 20 meters, allowing it to accommodate the largest cargo vessels currently in operation. This translates to handling mega ships carrying 24,000 TEUs, significantly improving India's capacity for international trade. Additionally, Vadhavan's efficient connection to inland areas is expected to decrease logistics costs by an estimated USD 50 to USD 100 per TEU.
The port's strategic positioning along a major trade route makes it well-suited to function as a transshipment hub. Cargo can be efficiently transferred between smaller feeder vessels and larger ships headed for international destinations. Reaching the hinterland will also be streamlined. National Highway-48 and the upcoming Delhi Mumbai Expressway will provide seamless road connectivity to northern and central India. The Mumbai-Delhi Western Railway Line and the Western Dedicated Freight Corridor are just 12 km away, offering robust rail connections.
The Vadhavan port project will be built using a landlord model and Public-Private Partnership (PPP) approach. A Special Purpose Vehicle (SPV) named Vadhavan Ports Projects Ltd has been established, with the Jawaharlal Nehru Port Authority (JNPA) holding a 74% stake and the Maharashtra Maritime Board (MMB) contributing 26%.
The construction will be divided into two phases. The first phase, targeted for completion by 2030, will create a capacity of 15 million TEUs. The remaining 8.2 million TEU capacity will be added in phase two, expected to be finished by 2040. The SPV will invest INR 38,976 crore in building basic infrastructure like breakwaters (INR 17,709 crore for dredging and reclamation work) and port buildings (INR 21,267 crore for Engineering Procurement and Construction or EPC mode). Private sector participation is anticipated to contribute around INR 37,244 crore, focusing on developing terminals, container facilities (container terminals, Ro-Ro terminal, bulk liquid jetty), and other operational aspects.
This mega-project is expected to generate significant economic benefits. Improved trade efficiency, reduced logistics costs by USD 50 to USD 100 per TEU, and the creation of new jobs are all on the horizon. The strategic location of Vadhavan port is expected to be a boon for economic activity in northern, northwestern, and central India. With all stakeholders on board and crucial approvals secured, the Vadhavan port project sets sail to transform India's trade and infrastructure landscape.
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