Union Minister for Ports, Shipping and Waterways, Sarbananda Sonowal, highlighted the importance of this project, stating, "This is the first major infrastructure project of the third term of Prime Minister Narendra Modi. It ends the hiatus of major port development, which had seen no new additions since the inauguration of Kamarajar port at Ennore in 2001 by then PM Atal Bihari Vajpayee."

Major ports in India, governed by the central government, handle approximately 61% of the country's total cargo capacity, which stands at 2604.99 million tonnes per annum (MTPA). The new Vadhavan port is set to enhance this capacity significantly, adding 298 MTPA, including 23.2 million TEUs (Twenty Foot Equivalent Units) of container handling capacity. With a deep draft of 20 meters, the port will be capable of accommodating mega vessels with up to 24,000 TEU capacity.

The project will be executed in two phases, with the first phase targeted for completion by 2030 and the second by 2040. A Special Purpose Vehicle (SPV), named Vadhavan Ports Projects Limited (VPPL), has been formed to oversee the development. The SPV comprises a 74% equity stake by Jawaharlal Nehru Port Authority (JNPA) and a 26% stake by Maharashtra Maritime Board (MMB).

Developed under a Public Private Partnership (PPP) model, the port will operate on a 'landlord model,' where private players manage operations and share revenues with the government. VPPL will invest Rs 38,976 crores in basic infrastructure, while the private sector is expected to contribute Rs 37,244 crores. Basic infrastructure construction will include Engineering Procurement and Construction (EPC) works like breakwater, shore protection, approach trestles, port buildings, and internal roads, with a budget of Rs 21,267 crores. An additional Rs 17,709 crores will be invested in dredging and reclamation works.

Private terminal operators will focus on developing various facilities such as berths, container terminals, Ro-Ro terminal, bulk liquid jetty, among others, with an investment of Rs 37,244 crores.

Sonowal emphasized Vadhavan Port's strategic role as the main feeder port for the India Middle East Europe Economic Corridor (IMEEEC), enhancing cargo movement to Iran?s Chabahar Port and boosting shipments for the International North South Transport Corridor (INSTC). The port's prime location is expected to stimulate economic activities across North, NorthWest, and Central India.

?With efficient hinterland connectivity, the cost of logistics will reduce significantly, potentially saving $50 to $100 per container,? the official statement noted. Road connectivity will be facilitated by National Highway (NH) 48 and the Delhi Mumbai Expressway, while the Mumbai-Delhi Western Railway Line and the upcoming Western Dedicated Freight Corridor are situated just 12 kilometers from the port.

The approval of the Vadhavan Port marks a significant step in India's infrastructure development, poised to enhance the nation's cargo handling capabilities and economic growth.