Rs.290 Crore Dahej Ferry Terminal Turns Into a Costly Failure

Ahmedabad : The Dahej Ro-Ro Ferry Terminal, built at an enormous cost of ₹290 crore, has become a glaring example of public fund mismanagement. Despite clear research indicating that Dahej’s location was unsuitable for a ferry service, the Gujarat Maritime Board (GMB) proceeded with the project. As predicted, natural factors like soil accumulation and strong water currents have rendered the terminal non-operational. To make matters worse, ₹117 crore spent on dredging has also been wasted, with no viable solution in sight.

Ignored Warnings Led to a Predictable Failure

In 2001, the government conducted a study to evaluate ferry connectivity between Pipavav, Dahej, Ghogha, and Surat. The findings were clear—Dahej, situated at the mouth of the Narmada River and adjacent to the Gulf of Khambhat, faces strong water currents and continuous sediment accumulation. Experts warned that maintaining a minimum 5-meter depth required for ferry operations would be impossible in the long term. However, the GMB overlooked these concerns and pushed forward with the project.

Ro-Ro Ferry Service Shut Down in 2019

Despite spending crores on dredging to clear accumulated soil, the problem persisted. The Ro-Ro ferry service from Dahej was launched but remained operational for only a short period before shutting down in 2019. Contractors repeatedly raised concerns with the Prime Minister and Chief Minister, but when no effective solution was found, they withdrew from the project.

Kandla Port Takes Over, Then Returns Terminal

After the ferry service ceased, the state government handed over the Dahej terminal to Kandla Port authorities, hoping for a revival. However, within months, Kandla Port also abandoned the project, recognizing that the natural challenges were insurmountable.

Huge Financial Losses and a Poor Investment Decision

The financial implications of this failed project are staggering:

₹290 crore spent on construction – Now an unusable asset.

₹117 crore spent on dredging – Lost to sediment accumulation.

₹615 crore estimated for the full ferry project – A questionable investment.

The Gujarat Maritime Board had even commissioned international firms like Beckett Rankin and Cash and Ray Infrastructure to prepare revenue projections. Their report indicated that the Ghogha-Surat ferry route would be far more profitable, with an estimated revenue of ₹6.67 lakh per week, compared to just ₹1.28 lakh per week for Ghogha-Dahej. This raises serious questions about why authorities proceeded with an economically weaker and environmentally unsuitable route.