**Executive Summary**
The Ministry of Ports, Shipping and Waterways has approved the ₹438.29 crore redevelopment of Berth No. 9 at New Mangalore Port under the DBFOT Public-Private Partnership model. The project aims to modernize aging infrastructure to handle liquid bulk cargo, with implementation approval conveyed on March 25, 2026. The redevelopment will increase capacity to 10.90 MTPA and enhance the port's ability to accommodate larger vessels, including Very Large Gas Carriers.
**Key Points / Main Content**
**Project Scope and Technical Specifications**
* **Infrastructure Modernization:** Dismantling of 50-year-old structures to be replaced by modern facilities with a 50-year structural life.
* **Capacity Enhancement:** Total cargo handling capacity will reach 10.90 MTPA for liquid bulk including crude oil, LPG, and petroleum products.
* **Draft Upgrades:** Enhancement of the berth draft from 10.5 meters to 14 meters, with future-ready provisions for up to 19.8 meters.
* **Vessel Accommodation:** Capability to handle vessels up to 2,00,000 DWT and Very Large Gas Carriers (VLGCs).
**Operational and Financial Framework**
* **Concession Details:** A 30-year concession period, which includes a two-year construction phase.
* **Bidding Process:** Selection of a private concessionaire via an open, single-stage, two-envelope competitive bidding system.
* **Cargo Commitments:** Concessionaires must commit to a Minimum Guaranteed Cargo (MGC) of 7.63 MTPA by the fifth year of operations.
* **Revenue Model:** The Port Authority will receive stable revenue through fixed royalty payments linked to cargo volumes.
**Technological and Safety Advancements**
* **Mechanization:** Installation of high-capacity Marine Unloading Arms (MULAs) and automated mooring systems to improve efficiency.
* **Safety Systems:** Integration of advanced firefighting infrastructure, nitrogen generation skids, and automated control systems for hazardous cargo.
**Impact Analysis**
**New Mangalore Port Authority (NMPA)**
**Impact**
The authority will benefit from modernized infrastructure and sustained revenue streams through fixed royalties and mandatory cargo commitments. It reinforces the port's strategic position as a maritime gateway for the Karnataka and Kerala hinterlands.
**Action Required**
Administer the bidding process and oversee the implementation of the implementation approval conveyed on March 25, 2026.
**Private Concessionaires**
**Impact**
Successful bidders gain the right to develop and operate a major liquid bulk berth for 30 years, benefiting from improved economies of scale and high-capacity infrastructure.
**Action Required**
Participate in the competitive bidding process and ensure the project meets the two-year construction timeline and the MGC requirements by the fifth year.
**Regional Industrial and Trade Stakeholders (Karnataka and Kerala)**
**Impact**
Industries will benefit from reduced logistics costs, enhanced energy supply chain resilience, and the ability to utilize larger vessels for trade.
**Action Required**
Coordinate industrial growth and energy commodity logistics with the enhanced capacity and deep-draft capabilities of the redeveloped berth.
Key Entities Referenced
New Mangalore Port: The central location for the berth redevelopment project, serving as a key maritime gateway for the Karnataka and Kerala hinterlands.
New Mangalore Port Authority (NMPA): The primary authority responsible for proposing and implementing the redevelopment of Berth No. 9 for liquid bulk cargo.
DBFOT model: The specific Public-Private Partnership (PPP) framework (Design, Build, Finance, Operate, and Transfer) adopted for the implementation of the project.
Ministry of Ports, Shipping and Waterways: The central ministry that approved the proposal for port infrastructure augmentation and modernization.
Ministry of Ports, Shipping and Waterways
Government Approves Redevelopment of Berth
No. 9 at New Mangalore Port to Boost Liquid
Bulk Capacity and Maritime Efficiency
Posted On: 30 MAR 2026 11:05AM by PIB Delhi
In a major step towards augmenting India’s port infrastructure and strengthening maritime logistics, the
Hon’ble Minister of Ports, Shipping and Waterways has approved the proposal of New Mangalore Port
Authority (NMPA) for the redevelopment of Berth No. 9 for handling liquid bulk cargo on a Public-
Private Partnership (PPP) basis under the DBFOT model. The approval for implementation has been
conveyed on 25th March 2026.
The project envisages the dismantling of legacy infrastructure and comprehensive redevelopment of Berth
No. 9 to handle liquid bulk cargo such as crude oil, petroleum products (POL), and LPG. As part of the
modernization, the berth draft will be enhanced from the existing 10.5 metres to 14 metres, with a future-
ready design provision up to 19.8 metres, enabling the port to accommodate vessels up to 2,00,000 DWT,
including Very Large Gas Carriers (VLGCs).
Highlighting the significance of the project, Union Minister of Ports, Shipping and Waterways Shri
Sarbananda Sonowal said,“This transformative project is a reflection of the visionary leadership of Prime
Minister Narendra Modi ji, under whom India’s maritime infrastructure is being modernised at an
unprecedented pace. By replacing ageing facilities with world-class marine infrastructure, enhancing
cargo handling capacity to 10.90 MTPA, and enabling the handling of larger vessels including VLGCs, we
are positioning our ports to meet future energy and trade demands while strengthening India’s role as a
global maritime leader.”
With an estimated project cost of ₹438.29 crore, the redevelopment will be undertaken by a private
concessionaire selected through an open competitive bidding process (single-stage, two-envelope system).
The project will have a capacity of 10.90 MTPA, and the concessionaire will commit to a Minimum
Guaranteed Cargo (MGC) of 7.63 MTPA by the 5th year of operations. The construction period is 2 years,
with a concession period of 30 years, inclusive of construction.
The project is expected to deliver significant strategic and operational benefits. It will replace nearly 50-
year-old structures with modern marine infrastructure designed for a 50-year structural life, ensuring long-
term sustainability and resilience. The enhanced capacity will strengthen the port’s ability to meet the
growing regional demand for liquid bulk cargo, particularly energy commodities.
By enabling the handling of larger vessels and VLGCs, the project will improve economies of scale,
reduce logistics costs, and enhance overall port competitiveness. Operational efficiency will be
significantly improved through mechanisation, including the installation of high-capacity Marine
Unloading Arms (MULAs) and automated mooring systems.The project also incorporates advanced safety and compliance systems, including modern firefighting
infrastructure, nitrogen generation skids, and integrated control systems to ensure safe handling of
hazardous liquid cargo.
From a financial standpoint, the project will ensure stable and sustained revenue streams for the Port
Authority through fixed royalty payments linked to cargo volumes, along with mandatory MGC
commitments.
Strategically, the redevelopment will further reinforce New Mangalore Port’s position as a key maritime
gateway for the Karnataka and Kerala hinterlands, facilitating trade, supporting industrial growth, and
enhancing energy supply chain resilience.
***
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