The US$90-million project is
intended to increase the Gujarat port’s annual liquid cargo handling capacity
from 2 million tonnes to 5.2 million tonnes. It represents a substantial
expansion of infrastructure serving liquefied petroleum gas (LPG) and other
liquid commodities.Aggarwal attributed the roughly three-month revision to
delays in the overall construction of the jetty. Management placed the expected
start of operations around the end of March or beginning of April.The revised
timing puts commissioning close to the transition between financial years
2026–27 and 2027–28. Management expects liquid cargo volumes of approximately
1.4 million tonnes in FY2026–27, rising to around 2.5–2.6 million tonnes in
FY2027–28. LPG, ammonia and petroleum products are expected to drive growth.The
project has experienced an earlier timetable revision. GPPL’s FY2024–25 annual
report recorded an original commissioning target of December 2025, subsequently
moved to December 2026 because statutory and regulatory approvals were taking
longer than anticipated. The latest explanation concerns construction
progress.The planned increase from 2 million tonnes to 5.2 million tonnes
amounts to 3.2 million tonnes of additional annual handling capacity.GPPL’s
FY2025–26 annual report stated that capital dredging had been completed and
civil construction was progressing. The report retained December 2026 as the
expected commissioning date, which has now been superseded by management’s
latest guidance.The expansion follows growth in the port’s liquid business
during FY2025–26. Throughput increased by approximately 8% to 1.59 million
tonnes, compared with 1.46 million tonnes a year earlier, primarily because of
higher LPG volumes. The company also reported that cryogenic storage
commissioned by its tank-farm operator had improved pumping rates and vessel
turnaround.Pipavav’s existing liquid facilities handle petroleum products,
chemicals, vegetable oils, bitumen and LPG. The port has railway sidings for
liquid cargo and pipeline connections between storage facilities and those
sidings.Its LPG rail facility can accommodate a full rake carrying
approximately 1,200 tonnes, according to the port operator. This provides an
inland distribution option alongside road transport and links marine handling
with delivery to customers in the hinterland.Storage investment has also
expanded the surrounding LPG infrastructure. Aegis Vopak Terminals reported
commissioning a 48,000-tonne cryogenic LPG terminal at Pipavav in June 2025,
taking its total LPG storage capacity at the location to 70,800 tonnes. Its
June 2026 investor update identified the new jetty as part of a broader
handling and distribution system incorporating storage, bottling, rail and
truck-loading facilities.GPPL raised its FY2026–27 container volume growth
outlook to 8–10%, from 4–5%, supported by increased transshipment associated
with West Asian shipping disruptions.Container volumes rose 18% during the
second quarter. Liquid volumes, however, declined 15% in the quarter and 32% in
the first half, which management largely attributed to the regional conflict.
The revised berth schedule
therefore comes as Pipavav manages different conditions across its cargo
segments. Completing the new facility will add handling capacity, while the
anticipated increase in liquid throughput remains dependent on cargo demand and
the development of supporting distribution flows.