The central government has approved a proposal from the New Mangalore Port Authority to redevelop Berth No. 9 for liquid bulk on a public?private partnership under the design?build?finance?operate?transfer (DBFOT) model, with approval conveyed on 25 March 2026. The minister for ports, shipping and waterways said the project reflects national leadership priorities and will replace ageing facilities with modern marine infrastructure while positioning Indian ports to meet future energy and trade demands. The work will be awarded to a private concessionaire selected through an open competitive bidding process using a single?stage, two?envelope system.

The scheme envisages dismantling legacy structures and raising 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 berth will handle crude oil, petroleum products and LPG and is designed for a cargo handling capacity of 10.90 million tonnes (mn t) per annum, with a minimum guaranteed cargo of seven point six three mn t by the fifth year. The construction phase is scheduled for two years and the concession period is 30 years inclusive of construction.

With an estimated cost of Rs 4,382.9 mn, financial terms include fixed royalty payments linked to cargo volumes and mandatory minimum cargo guarantees to ensure revenue stability. The redevelopment will replace nearly fifty?year?old structures with modern marine works designed for a 50?year structural life to improve long?term sustainability and resilience. Operational performance is expected to improve through mechanisation, including high?capacity marine unloading arms and automated mooring systems.

By enabling the handling of larger vessels and gas carriers, the port will gain economies of scale that should reduce logistics costs and enhance competitiveness for the Karnataka and Kerala hinterlands, facilitating trade and supporting industrial growth. Advanced safety and compliance systems such as modern firefighting infrastructure, nitrogen generation skids and integrated control systems are included to ensure safer handling of hazardous liquid cargo and to strengthen regional energy supply chain resilience over the concession period.