Liquefaction occurs when loose saturated sand loses its strength as a result of dynamic loading and begins to behave like a viscous fluid rather than a solid. This causes a huge reduction in effective stress, leading to loss of lives and property due to structure tilting, collapse, and foundation settlement. The 2001 Bhuj Earthquake triggered liquefaction in some areas of Gujarat and damaged buildings, bridges, ports, and dams. This study examines the behaviour of Kandla port's shallow foundation due to liquefiable soil during the 2001 Bhuj earthquake using finite element method by PLAXIS 3D software. Static and dynamic analyses of building founded on circular footing in terms of settlement, effective stress, and excess pore water pressure have been carried out. Also, vertical drain's liquefaction mitigation capability was investigated in this study. In the presence of buildings, vertical and horizontal deformation at the ground's surface and below the foundation were observed to be highest via dynamic analysis, with vertical deformation being smaller than horizontal deformation. This research revealed that dynamic settlements are higher than static settlement and, the vertical drains reduce excess pore water pressure and enhance effective stress. Dynamic analysis reveals that in the presence of buildings, vertical and horizontal deformation peaks at the ground's surface and beneath foundations, with vertical deformation smaller than horizontal. This study comprehensively explores earthquake-induced hazards, factors influencing liquefaction, and their impact on buildings. By examining the mechanisms through which earthquakes trigger hazards and liquefaction in structures, the research aims to enhance our ability to mitigate damage effectively.