The congestion has intensified amid a surge in break-bulk cargo, particularly basmati and non-basmati rice exports to the Middle East, and growing demand for the port’s cost-effective cargo-handling services. The delays are imposing substantial costs on shipowners and charterers, who reportedly pay $15,000–20,000 per day in vessel hire.    DPA Chairman Sushil Kumar Singh said the port was operating at 85–90% capacity utilisation, with all berths occupied and vessels being handled at both berths and mooring points. The port has handled more than 102 million tonnes (MT) of cargo in the current financial year so far, compared with 78 MT during the corresponding period last year, and is targeting 190–195 MT for the full year.    In FY2025–26, DPA handled 160.11 MT of cargo.    To address the immediate bottleneck, DPA plans to adapt one of its liquid cargo jetties to accommodate rice-laden trucks and facilitate the loading of bagged rice onto ships. The authority is considering modifications to the jetty’s frames and structures to enable truck movement and cargo operations.    The port is also utilising three mooring points within the channel to handle rice shipments. Under this arrangement, rice is transported by barges to vessels stationed at the mooring points, allowing loading operations to continue outside conventional berths.    According to Singh, a key contributor to the congestion is the shift by rice exporters from containerised shipments to break-bulk cargo. Higher container freight rates to the Middle East have encouraged exporters to move rice in bags aboard conventional vessels, increasing demand for labour-intensive cargo-handling facilities at Kandla.    Bagged cargo typically achieves productivity of only 3,000–3,500 tonnes per day, compared with 40,000–50,000 tonnes for bulk cargo. Consequently, vessels carrying bagged cargo can occupy berths for more than 10 days, reducing berth availability for other ships.    Although Mundra, operated by Adani Ports and Special Economic Zone Ltd, is located nearby, shipping industry sources indicate that vessels continue to prefer Kandla because of its competitive tariffs.    DPA is also capitalising on the protected waters of the Gulf of Kutch to facilitate ship-to-ship (STS) crude oil transshipment at Vadinar and nearby anchorage areas.    The port authority handled more than 25 MT of crude oil through STS operations during the first half of the current financial year, involving vessels navigating the Strait of Hormuz amid continuing geopolitical tensions in the Middle East.    DPA is providing Yokohama fenders, mooring personnel and coordination support to facilitate transfers between large mother vessels and smaller daughter vessels. The initiative is helping accommodate crude oil movements involving a wider range of international origins and destinations.    The expansion of STS operations is providing an additional source of cargo volumes at a time when some of the port’s traditional fast-moving cargo has declined following European Union sanctions affecting Nayara Energy, which operates a refinery at Vadinar.    Looking beyond immediate operational measures, DPA has proposed a major expansion project involving a six-kilometre waterfront outside Kandla Creek, with an estimated overall investment of ₹47,000 crore.    The project is envisaged in four phases of 1.5 km each. The first phase, estimated to cost around ₹6,400 crore, is proposed to be developed through the engineering, procurement and construction (EPC) model, with the proposal already submitted to the Union Ministry of Ports, Shipping and Waterways.    The first phase will involve constructing a trestle and berth to handle bulk and break-bulk cargo. DPA intends to operate the facility and use the resulting revenues to support further infrastructure development, while considering public-private partnership (PPP) models for the subsequent phases.    The decision to adopt the EPC route for the initial phase is linked to exclusivity clauses governing private terminals at Tuna Tekra. Under agreements with the Adani bulk terminal and DP World’s container terminal, DPA has undertaken not to establish competing facilities for five years from the commencement of operations or until the terminals achieve 70% capacity utilisation for two consecutive years, whichever occurs earlier.    The authority believes that relocating certain operations from ageing berths inside Kandla Creek to the proposed waterfront, rather than creating competing capacity, could help avoid disputes over these contractual provisions.    The proposed expansion also reflects growing concerns over the structural condition of DPA’s older cargo-handling infrastructure. Several berths inside Kandla Creek are more than 50 years old, and incidents involving the collapse of berth No. 6 and damage to berth No. 18 have intensified calls for reconstruction.    DPA operates 16 dry cargo berths, including a container-handling facility, and eight liquid cargo jetties, with three additional jetties under development inside Kandla Creek.    Outside the creek, Tuna Tekra is emerging as a major centre for capacity addition. Adani Ports operates a dry-bulk terminal there, while DP World is developing a container terminal with a capacity of 2.19 million TEUs, expected to open next year. Essar Ports is also expected to receive a 30-year contract to develop and operate an 18.3 MT multipurpose cargo berth.    However, DPA is proceeding cautiously with the modernisation of existing berths to avoid potential litigation arising from exclusivity arrangements with private terminal operators.    Despite sustained vessel queues and visible demand for additional capacity, DPA has encountered limited interest from private operators in its PPP projects. Singh acknowledged the need for urgent capacity creation and indicated that the authority may have to rely on its own investments where private participation falls short.    DPA has retained its existing tariff structure, which is indexed to the Wholesale Price Index, while offering concessions on selected vessel-related and crane-handling charges to attract cargo. Competitive pricing remains a key factor in the port’s ability to retain exporters and shipping lines despite prolonged vessel waiting times.    With cargo volumes rising sharply, rice exports shifting towards break-bulk shipments and crude oil transshipment gaining momentum at Vadinar, DPA faces the dual challenge of managing immediate congestion and expanding long-term capacity.   

The proposed waterfront development, combined with emergency berth utilisation measures and greater use of mooring points, is expected to play a crucial role in strengthening Kandla’s position as a major gateway for India’s international trade.