Context: The port is to be constructed through a Special Purpose Vehicle (SPV) formed by Jawaharlal Nehru Port Authority and Maharashtra Maritime Board as an all-weather Greenfield deep draft major port.

• Greenfield infrastructure is the infrastructure developed on empty land or previously undeveloped land and a project commissioning, planning and construction process is carried out from the scratch and grassroots level.

About Vadhavan Port

• Project, aligned with objectives of PM Gati Shakti program

• Port is to come up in Palghar District and will be built on a landlord-model and through PPP.

• In Landlord model, port authority acts as a regulatory body as well as landlord and private companies carry out port operations.

• Port is to be constructed in 2 phases with a total capacity of 23.2 million TEUs (Twenty-foot equivalents) of container holding capacity.

• The port is to have a draft of 20 meters allowing handling of mega vessels.

Significance of the Project

• Increased Capacity and Efficiency:

• Mega Port Status: Vadhavan will be India’s first mega port, capable of handling massive cargo volumes and accommodating the largest vessels like Capesize ships. 

• It will have a total capacity of 298 million metric tonnes (MMT) per year, including about 23.2 million TEU of container handling capability.

• Reduced Congestion: The new port will significantly alleviate pressure on existing ports, particularly the Jawaharlal Nehru Port Authority (JNPA), which currently handles a large share of India’s containerized cargo traffic.

• Strategic Location and Connectivity:

• Gateway to International Corridors: Vadhavan’s location positions it as a crucial link for the International North-South Transportation Corridor (INSTC) and the India-Middle East-Europe Corridor (IMEEC).

• It  facilitates smoother trade flow and improves trade efficiency. 

• Economic Growth and Job Creation:

• Boost to EXIM Trade: The increased capacity and strategic location are expected to significantly benefit India’s import and export trade.

• Employment Opportunities: The project is estimated to generate direct and indirect employment opportunities for around 12,000 people.

Ports in India

• Ports in India are categorized in 2 categories – Major Ports and Non-Major Ports.

• Major Ports: These are under the administrative control of Union Ministry of Ports, Shipping, and Waterways.

• Currently, there are 12 functional Major ports.

• Note: India has 13 significant ports(12 Government-owned & 1 private) 

• Minor Ports: These are under the jurisdiction of respective State Maritime Boards/ State Government.

• Currently, there are 200 non-major ports.

Leading Ports in India

• Largest Major Port: Jawaharlal Nehru Port Trust (JNPT)

• Largest Private Port: Mundra Port

• Significant Milestone: JNPT becomes the first 100% Landlord Major Port

Challenges Faced by the Indian Port Sector

• Outdated Infrastructure: Many ports lack modern equipment and the water depth (draft) is insufficient to handle the largest ships. This limits efficiency and capacity.

• Limited Space for Expansion: Existing ports are crowded, making it difficult to increase capacity to meet growing trade demands.

• Poor Logistics Network:  Inadequate roads and railways connecting ports to inland areas create delays and bottlenecks.

• Red Tape and Delays: Lengthy customs procedures and bureaucratic hurdles slow down cargo movement and increase turnaround times.

• Lack of Automation: Many ports rely on manual processes, hindering efficiency and accuracy.

• Environmental Concerns:  Balancing port development with environmental protection can be challenging, leading to project delays due to impact assessments.