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Sea Port in Vadhavan gets approval by Cabinet

The Indian government has approved the construction of a new major port at Vadhavan. The project will set back the government back by approximately Rs. 65,544.54 crore. The decision to build the port was approved by Indian Prime Minister Narendra Modi. The Union Cabinet approved the project which may put India on the list of the top 10 container ports globally. The new port will reduce the operational burden on the Nehru Port in Mumbai, which is currently the 28th busiest port globally. Despite the introduction of the new port, Nehru Port’s traffic is expected to grow by over 100% by 2023. The new port will be built on the landlord model by SPV. Reclamation and construction activities will begin this year, along with the construction of a breakwater to establish connectivity. All business activities surrounding the port will be undertaken by private developers and public, private partnerships. The move by the government comes in the wake of an increasing level of containerization of cargo globally. Container shipping benefits manufacturers. The new port will ease the operational pressure on other ports and accommodate the expected increase in container traffic at the Nehru Port in Mumbai. The new port will also prepare for increased manufacturing activity in the Maharashtra region.
Ports
Government of India
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