With the advent of French in 1673, Pondicherry became an important trading port.Trade by sea grew steadily with many French and foreign ships arriving at the port. On 15th August 1866, a pier built of iron covering a distance of 192 meters was inaugurated. However, in 1881-82 it was extended by 64 meters and in 1908-1909 by another 80 meters, reaching out a total length of 336 meters. On 17.11.1862 steamer ship service between Pondicherry and France was inaugurated and this marked a big stride towards modernization of Pondicherry's overseas communication. Pondicherry very soon became a port of call for all ships sailing from France to the Far East.

With the introduction of railways in British India, trade through this French port declined to some extent. The port at Pondicherry is an open roadstead and ships anchor a couple of Kms offshore. During the French regime, there was movement of both passengers and cargo through the port. After merger, there is only cargo movement. With merger in 1954 the import of consumer goods and export of textiles to the French colonies in Africa stopped. Pondicherry that had been enjoying special privileges as a free port and flourished as a centre of international trade and commerce began to lose its importance.

The cyclone in 1952 destroyed the metallic pier built by French. With the collapse of this pier, the traffic was handled with the help of country boats. A new pier was constructed in January 1963 under the direct supervision of Ministry of Transport at a cost of Rs 48 lakhs. The port is provided with adequate space for stocking goods. Godowns that belong to the Chamber of Commerce are also situated nearby. The regular port traffic was continued in 1963 for handling general cargo.

There are three minor ports in the Union Territory of Pondicherry, one each in Pondicherry, Karaikal and Mahe, of which Pondicherry in the West Coast is the only working port. The principal trade at the Pondicherry port consists mainly of imports of wheat, fertilizers and cement. All the ports are owned and governed by the Government.