Dhamra is one of the most ancient ports on the eastern coast of India. The history of Dhamra dates back to 15th Century A.D., when the first port named Chandbali was established near the mouth of river Dhamra. Till about independence and even thereafter it was used for cargo transportation between North Orissa and Kolkata. In the Imperial Gazette-1928 AD Walter Hamilton observed that Kanika (Dhamra-Chandbali) port was prosperous oceanic trading centre and point Pamiras of southern side of Dhamra river mouth was one of the most important navigation landmarks of that time.

The port limits of Dhamra were officially notified as far back as 1930. After independence, Dhamra continued to be recognized as a minor port of Orissa. The existing port was identified by the Government of Orissa for development into a modern deep port based on a pre-feasibility study done by RITES. A Concession Agreement was signed between the Government of Orissa and International Seaports Pte. Limited (ISPL) on April 2, 1998 to expand and develop the minor port of Dhamra on BOOST basis. By the deed of assignment dated May 5, 1999 ISPL has assigned and subrogated all its rights and obligations to DPCL under the Concession Agreement for the implementation of the project.