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Kandla Port set to become first major port in India to expand into other states

Kandla Port set to become first major port in India to expand into other states

India’s maritime sector is on the cusp of a historic transformation, with Kandla Port, officially known as the Deendayal Port Authority (DPA), poised to become the first major port in the country to expand operations beyond state boundaries. This ambitious step highlights not only Kandla’s growth trajectory but also a new model for port development and efficiency in India.

Expansion Beyond Gujarat

Kandla Port authorities are currently in advanced negotiations to take over strategic port terminals in Gujarat, Maharashtra, and Karnataka. A senior DPA official confirmed ongoing talks, saying:

“We are in active discussions with certain ports in Maharashtra and Karnataka. We are also in talks with the Gujarat Maritime Board to take over and collaborate on some part of their business and run it in an efficient manner by replicating our operations at Kandla.”

The official further explained that DPA is “ownership agnostic”, open to acquiring both government and private terminals. The primary focus remains on efficiency, throughput, and decongestion, ensuring India’s western maritime corridor is equipped to handle growing trade demands.

Aiming for Growth and Efficiency

Kandla Port has already established itself as one of India’s busiest ports. In the last fiscal year, it handled over 150 million tonnes of cargo, ranking second only to Paradip Port.

Its cargo profile reflects its dominance in critical sectors:

  • Petroleum, oil, and lubricants (POL): 60% of total volumes

  • Salt exports: 70% of India’s total

  • Timber imports: 90% of national volume

  • Significant movement of foodgrains, edible oils, chemicals, and containers

By expanding into other states, DPA seeks to scale this operational success model, while addressing congestion challenges at existing hubs.

Expansion Projects at Kandla

Parallel to its interstate expansion, DPA is also strengthening infrastructure within Kandla. Key projects include:

  • A new deep draft multi-cargo berth with an annual capacity of 18 MTPA to handle dry bulk, project cargo, and break-bulk.

  • A 2.3 million TEUs container berth, developed under the PPP model, expected to be commissioned by September 2027.

These projects aim to transform Kandla into a more versatile and high-capacity port, capable of handling diverse cargo streams.

Strategic Impact

Kandla’s interstate expansion is more than just an operational shift it represents a strategic leap for India’s maritime sector. By extending its footprint into Maharashtra, Karnataka, and other parts of Gujarat, DPA will:

  • Increase throughput across India’s western coastline

  • Replicate Kandla’s best practices in efficiency and management at other ports

  • Reduce congestion and improve cargo movement

  • Set a precedent for other major ports to adopt a multi-state operational model

If successful, Kandla will not only secure its place as a leader in India’s port sector but also pioneer a framework for interstate collaboration in maritime logistics a move that could reshape India’s trade infrastructure for decades to come.

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