The government has approved the New Mangalore Port Authority proposal to redevelop Berth Nine for handling liquid bulk cargo on a public-private partnership basis under the DBFOT model, with implementation conveyed on 25 March 2026. The redevelopment will involve dismantling legacy infrastructure and increasing the berth draft from 10.5 metres to 14 metres, with a future-ready provision up to 19.8 metres to accommodate vessels up to 200,000 DWT including Very Large Gas Carriers.

The project is estimated to cost Rs 4.38 billion (bn) and will be implemented by a private concessionaire selected through an open competitive bidding process under a single-stage, two-envelope system. The redevelopment is intended to deliver a handling capacity of 10.90 MTPA and the concessionaire will commit to a minimum guaranteed cargo of 7.63 MTPA by the fifth year of operations, with a two year construction period and a concession term of 30 years inclusive of construction.

It will replace nearly 50-year-old structures with modern marine infrastructure designed for a 50-year structural life, and will strengthen the port's ability to meet regional demand for liquid bulk, particularly energy commodities. The project is expected to improve economies of scale by enabling larger vessels and the handling of VLGCs, reduce logistics costs, and enhance overall port competitiveness through mechanisation and automated mooring systems.

Operational efficiency improvements will include installation of high-capacity marine unloading arms and integrated control systems as well as modern firefighting infrastructure and nitrogen generation skids to ensure safe handling of hazardous liquid cargo. Financially, the redevelopment will provide stable revenue streams for the port authority through fixed royalty payments tied to cargo volumes alongside mandatory guarantees, and it will reinforce New Mangalore Port as a key maritime gateway for the Karnataka and Kerala hinterlands supporting trade and energy supply chain resilience.