₹438 Crore Mega Upgrade: New Mangalore Port to Handle VLGCs as Govt Clears PPP Redevelopment of Berth 9

The redevelopment will replace nearly five-decade-old infrastructure with a state-of-the-art berth designed for a structural life of 50 years.

In a major boost to India’s maritime infrastructure and energy logistics ecosystem, the Ministry of Ports, Shipping and Waterways has approved the ₹438.29 crore redevelopment of Berth No. 9 at New Mangalore Port Authority (NMPA). The project, cleared on March 25, 2026, will be implemented under the Public-Private Partnership (PPP) mode using the Design, Build, Finance, Operate and Transfer (DBFOT) model.

The ambitious project marks a significant step in modernising India’s port infrastructure, with a sharp focus on enhancing liquid bulk cargo handling capacity—including crude oil, petroleum products (POL), and liquefied petroleum gas (LPG)—to meet rising domestic and global energy demands.

Transforming Legacy Infrastructure into Future-Ready Capacity

The redevelopment will replace nearly five-decade-old infrastructure with a state-of-the-art berth designed for a structural life of 50 years. A key highlight of the project is the substantial increase in berth draft—from the existing 10.5 metres to 14 metres, with future scalability up to 19.8 metres.

This upgrade will enable the port to handle vessels of up to 2,00,000 Deadweight Tonnage (DWT), including Very Large Gas Carriers (VLGCs)—a critical capability for boosting bulk energy imports and improving maritime efficiency.

Union Minister Shri Sarbananda Sonowal described the project as a “transformative milestone” in India’s maritime growth story. “By replacing ageing infrastructure with world-class facilities and expanding cargo handling capacity to 10.90 MTPA, we are strengthening India’s position as a global maritime leader while preparing for future energy and trade demands,” he said.

Capacity Expansion and Economic Impact

The redeveloped berth will have a total cargo handling capacity of 10.90 Million Tonnes Per Annum (MTPA), with the private concessionaire committing to a Minimum Guaranteed Cargo (MGC) of 7.63 MTPA by the fifth year of operations.

The project will be executed over a two-year construction period, followed by a 30-year concession period, ensuring long-term operational stability and investor confidence.

By enabling the handling of larger vessels, the project is expected to:

• Achieve economies of scale in shipping operations

• Reduce per-unit logistics costs for energy commodities

• Improve turnaround times and port efficiency

• Strengthen India’s bulk import capabilities

Technology-Driven Modernisation and Safety Systems

The redevelopment incorporates advanced mechanisation and digital systems to enhance operational efficiency and safety. Key features include:

• Installation of high-capacity Marine Unloading Arms (MULAs)

• Automated mooring systems for faster vessel handling

• Integrated control and monitoring systems

• Advanced firefighting infrastructure and safety mechanisms

• Nitrogen generation skids for safe handling of hazardous cargo

These upgrades will ensure compliance with global safety standards while improving throughput and operational reliability.

PPP Model to Drive Investment and Revenue Stability

The project will be awarded through a transparent single-stage, two-envelope competitive bidding process, reinforcing the government’s commitment to fair and efficient PPP implementation.

From a financial perspective, the model ensures:

• Stable revenue streams for NMPA through royalty linked to cargo volumes

• Assured cargo throughput via mandatory MGC commitments

• Reduced fiscal burden on the government through private sector participation

Strengthening India’s Energy and Trade Corridors

Strategically located, New Mangalore Port serves as a vital maritime gateway for the industrial and energy needs of Karnataka and Kerala. The upgraded berth is expected to significantly enhance the region’s ability to handle growing imports of crude oil, LPG, and other liquid bulk commodities.

The project will also:

• Strengthen energy supply chain resilience

• Support downstream industries such as petrochemicals and refining

• Boost regional industrial growth and employment

• Enhance India’s competitiveness in global maritime trade

Aligning with India’s Maritime Vision

The redevelopment aligns with the government’s broader maritime strategy, including initiatives such as Sagarmala and port-led development, aimed at transforming India into a global logistics and shipping hub.

With increasing energy demand and global trade volumes, the modernisation of critical port infrastructure like Berth No. 9 positions India to handle future challenges while capitalising on emerging opportunities in maritime logistics.

As India accelerates infrastructure development, projects like this underscore a clear shift toward technology-driven, scalable, and globally competitive ports, reinforcing the country’s ambitions of becoming a leading maritime power.