India’s first HAM model in port sector set to propel Vadhvan Port as global container hub

The project will be implemented in two phases under the Public-Private Partnership (PPP) Hybrid Annuity Model (HAM). The first phase involves reclaiming 800 hectares of land over three years, with contractors receiving 60 per cent of the contract value during this period. The second phase will reclaim an additional 400 hectares over two years, maintaining the same payment structure. The remaining 40 per cent of the contract value for both phases will be disbursed over a 10-year maintenance period, commencing after the project’s completion in five years.

The proposal will now be forwarded to the Ministry of Ports, Shipping, and Waterways for evaluation, followed by submission to the Public-Private Partnership Appraisal Committee. Marking a first in India’s port sector, the Hybrid Annuity Model (HAM)—adapted from the National Highways Authority of India (NHAI)—has been customized to suit port development needs.

To address feedback from private contractors, JNPA revised the NHAI’s standard 40:60 payment structure to a more contractor-friendly 60:40 ratio. Additionally, maintenance dredging, a significant cost burden, has been excluded from the contract to boost private sector participation.

Located near Dahanu in Palghar district, Vadhavan Port is projected to handle over 23 million TEUs (Twenty-foot Equivalent Units), heralding a new era of maritime infrastructure and economic ambition in India.

Positioned to be one of the world’s top 10 container ports by 2040, Vadhavan is a state-of-the-art, greenfield port estimated to cost Rs 76,220 crore. The development will be managed by Vadhvan Port Project Ltd., a joint venture between JNPA (74 per cent stake) and Maharashtra Maritime Board (26 per cent stake), under the landlord model.

Revenue streams for JNPA will include royalties from private operators managing the port’s terminals. These operators will collect berth hire charges, while JNPA retains vessel-related charges, ensuring sustainable long-term earnings. The strategic location of Vadhavan Port provides it with a unique edge. Situated just 12 km from the Dedicated Rail Freight Corridor and 22 km from the Mumbai-Vadodara Expressway, the port will connect seamlessly to industrial centers across Maharashtra, Gujarat, and beyond.

This proximity ensures efficient movement of goods, reduces logistics costs, and accelerates transit times, making it a competitive trade and transit hub.