Deendayal Port Authority (DPA), Kandla, has awarded a 30-year contract to Essar Ports Limited to develop a multi-purpose cargo terminal at Tuna Tekra. The project, on a BOT basis, aims to augment DPA's cargo capacity and boost maritime trade.
Deendayal Port Authority (DPA), Kandla, has issued a Letter of Award (LoA) to Essar Ports Limited on Wednesday for the development of a multi-purpose cargo terminal at Tuna Tekra, Kandla. The project will be implemented on a Build-Operate-Transfer (BOT) basis under the Public-Private Partnership (PPP) mode for a concession period of 30 years, marking a step towards strengthening India's maritime infrastructure.
According to DPA, Essar Ports Limited emerged as the highest bidder through a global competitive bidding process, offering a royalty of Rs 61 per tonne payable to DPA. The terminal will be developed on the eastern side of DPA's Mega Container Terminal at Tuna Tekra, which is being developed by DP World under the PPP mode. The project is expected to augment DPA's multipurpose cargo-handling capacity and support the long-term growth of domestic and export-import (EXIM) trade, the port authority said.
A Vision for Maritime Growth
DPA said that under the leadership of Prime Minister Narendra Modi, India is witnessing a transformative phase in maritime infrastructure development, driven by the vision of Viksit Bharat and port-led economic growth. It added that Kandla is emerging as a strategic gateway for global trade, maritime connectivity and economic prosperity, supported by infrastructure development, enhanced cargo-handling capabilities and sustainable development initiatives.
On the occasion, DPA Chairman Sushil Kumar Singh formally handed over the Letter of Award to V Srinivasan, Operating Partner-Infrastructure Vertical, and Ashish Rajgarhia, Chief Executive Officer of Essar Ports, in the presence of senior officials from DPA and Essar Ports Limited.
Project Scope and Specifications
Strategically located on India's western coast, the proposed mega greenfield terminal is expected to strengthen the country's maritime infrastructure, enhance cargo-handling capacity and facilitate trade growth. The project reflects the Government of India's focus on developing world-class port infrastructure and advancing port-led economic development.
The terminal is designed to handle 18.33 million tonnes of cargo annually. The estimated project cost is Rs 2,276.06 crore, comprising an investment of Rs 1,552.57 crore by the concessionaire and Rs 723.49 crore by DPA. DPA will provide common-user infrastructure, including dredging of the access channel, berth pockets and turning circles, along with a common approach road.
Terminal Features and Timeline
The facility will comprise four berths, each measuring 300 metres, providing an aggregate berth length of 1,200 metres. It is designed to accommodate Cape-size vessels of up to 1,70,000 deadweight tonnes (DWT), with a draft capability of up to 18 metres. Commercial operations are expected to commence by 2031.
Efficiency, Sustainability, and Economic Impact
The terminal will be developed and operated in accordance with applicable environmental requirements and the Green Port Policy, with sustainability considerations integrated into its planning, construction and operations. Modern cargo-handling systems and deep-draft infrastructure are expected to improve productivity, operational efficiency and ease of doing business.
DPA's existing dry-cargo berths are currently operating at over 90 per cent berth occupancy, compared with the indicated ideal level of 70 per cent. The use of larger vessels is expected to support more efficient shipping, reduce freight and fuel costs, and improve cargo movement.
The project is also expected to facilitate faster and more cost-effective cargo evacuation and strengthen the competitiveness of Indian exports. It is likely to generate direct and indirect employment and promote ancillary activities in logistics, warehousing and allied services across Kutch and Gujarat.
Royalty receipts for DPA, along with wider economic activity and tax contributions, are expected to support public revenues and facilitate trade with international markets. The integration of environmentally sustainable practices and green technologies is intended to minimise the terminal's environmental footprint and support sustainable port-led growth.
The multi-purpose cargo terminal is expected to strengthen DPA's cargo-handling capabilities, improve the efficiency of India's trade logistics and contribute to port-led economic growth in Gujarat and the wider hinterland. (ANI)
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