As threats to the Portuguese maritime supremacy increased, they built forts on various hillocks, especially along the coast. In 1624 they began to build their fortified town on the headland overlooking Mormugao harbour.

It is 34 Kms from Panaji and 4 Kms from Vasco-da-Gama. The Mormugao harbour on the mouth of the river Zuari is one of the best natural harbours in South Asia. This harbour near the city of Vasco handles mineral ore, petroleum, coal and international containers. Much of the shipments consist of minerals and ores from Goa's hinterland.