JNPA eyes Vadhvan port for next phase of growth as it nears 12 mn TEUs

Jawaharlal Nehru Port Authority (JNPA), India’s largest container port, is on course to expand its existing infrastructure to handle up to 12 million twenty-foot equivalent units (TEUs) over the next few years, Chairperson Gaurav Dayal told Business Standard in an interview .

 

“With more efficiency in the operations of the terminals, we will be able to stretch our existing capacity to about 12 million TEUs, which will be JNPA’s ultimate capacity, as there’s no new waterfront available to develop a new terminal – a geographical limitation,” Dayal said.

 

Currently operating five container terminals with a combined capacity of around 10.1 million TEUs, JNPA expects to handle close to 8 million TEUs in calendar year 2025, or possibly more, marking a year-on-year (YoY) growth of over 13 per cent.

 

The port has historically clocked average annual volume growth of 10–12 per cent. At that pace, Dayal said, JNPA could hit its full capacity in 3-4 years. Beyond that, future growth will be channelled to the upcoming Vadhvan port in Maharashtra, which is being developed as a greenfield mega port project.

 

While trade flows have been disrupted globally due to new tariff regimes announced by the US government, the impact on JNPA’s cargo volumes has been limited. “There were marginal dips. In anticipation of the tariffs, there was a sudden increase of 12–13 per cent in cargo volumes. Later, there was a dip, but by the end of the financial year, it should level out,” he said.

 

JNPA’s relative insulation stems from its specialisation in containerised trade and its diversified cargo base. Although exports to the US have softened, overall volumes have remained stable as Indian exporters have redirected shipments to alternative markets. “That means that we have found new partners,” Dayal added, stating that JNPA’s role is largely facilitative. “We are just a medium to facilitate export. Despite US tariffs, trade has by and large remained stable.”

 

Dayal believes that terminal operators, most of whom are private players, will figure out the best methods to ensure their business does not suffer.

 

The real growth engine for the next decade, however, lies beyond JNPA’s existing harbour. Vadhvan port, located north of Mumbai, is envisaged as one of the largest container ports in the world, with a planned capacity of 23–25 million TEUs when fully developed.

 

The project will feature nine terminals with a total quay length of around 9 km. Four terminals are expected to become operational within the next five years. Importantly, Dayal stressed that Vadhvan will not cannibalise JNPA’s cargo. “This 25 million TEU capacity will be achieved in the next 10 or more years. By that time, the cargo volumes for India would rise manifold,” he said. “JNPA will work at its full capacity, and the remaining cargo will be handled by the Vadhvan port,” he said.

 

Vadhvan is being developed through Vadhvan Port Private Limited (VPPL), a special purpose vehicle jointly owned by JNPA (74 per cent) and the Maharashtra Maritime Board (26 per cent). The total project cost is estimated at Rs 76,220 crore. “We have sufficient funds for near-shore reclamation and the breakwater works,” Dayal said, adding that VPPL will need to raise around $2 billion over the next six months as construction activity gathers pace.

 

Back at JNPA, the port is preparing for the final link of the Dedicated Freight Corridor (DFC), expected to connect to the port by March–April 2026. “There will be a sudden increase in container traffic,” Dayal said, noting that internal systems are being readied to avoid bottlenecks.

 

JNPA has also made progress in monetising its special economic zone (SEZ), with 323 acres already allotted and 80 acres still available for new entrants. The SEZ saw export-import (Exim) activity of Rs 16,000 crore and container volumes of 17,857 TEUs in FY25. Based on current commitments, throughput is projected to scale significantly, to 1.5 lakh TEUs in the next five years, and potentially 3 lakh TEUs once the entire SEZ becomes fully active.

 

On competition from aggressive private port operators on the West Coast, Dayal said, “The cargo is going to increase so much that there will be enough business for everyone.” The bigger challenge, he argued, is ensuring that ports expand capacity and efficiency fast enough to keep pace with India’s trade growth amid the government’s push for manufacturing, exports, and port-led industrialisation.

 

JNPA currently commands an estimated 50–60 per cent share of India’s container cargo, a level Dayal described as “quite healthy”. Maintaining that share while improving efficiency and global rankings remains a key priority. JNPA is currently placed 23rd on the Container Port Performance Index.

 

“My top priority is Vadhvan port,” Dayal said. “We should be able to commence its operations in time. At the same time, my objective is to ensure that JNPA remains at the forefront of port-led industrialisation of the country.”

 

Commenting on the possibility of an initial public offering (IPO), Dayal said there are no such plans “at present”.