Decks cleared for new Rs 4,243 crore mega ship terminal near Kandla in Gujarat

Deendayal Port Authority (DPA), which manages the Kandla port, will sign an agreement tomorrow for the development, operation and maintenance of a new mega container terminal at Tuna-Tekra on the Gujarat coast with DP World, a multinational logistics giant based in Dubai, according to an official statement issued today.

The project involves construction of a mega-container terminal at Tuna-Tekra near Kandla, at a cost of Rs 4,243.64 crore through Public Private Partnership (PPP) mode. Once complete, the terminal will have an annual capacity to handle 2.19 million container units (TEUs) with capability to handle next-generation vessels carrying more than 18,000 TEUs.

The project is expected to enhance operational efficiency by reducing congestion at Kandla creek, increase the ability to handle mega container vessels and lead to a significant reduction in the turnaround time of ships. Equipped with multimodal connectivity through a wide network of roads, rail and highways, the terminal will provide a gateway between the hinterland and global markets.

“The concession agreement will be signed on 25th August 2023 between Deendayal Port Authority and DP World in the presence of Sarbananda Sonowal, Union Minister of Ports, Shipping and Waterways and H.E. Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World at New Delhi,” the official statement said.

The new terminal will cater to future trade demand from Northern, Western and Central India, connecting the regions to global markets. The project aligns with Vision 2047 of Government of India to quadruple port handling capacity and develop multimodal logistics infrastructure to promote economic growth.

The 30-year PPP project agreement with a special purpose vehicle of Hindustan Infralog Private Limited (a JV of DP World and National Investment and Infrastructure Fund (NIIF)), is on Build-Operate-Transfer (BOT) basis, extendable up to 50 years. The container terminal will be fully compliant with the green port guidelines ensuring sustainability in port operations by adopting best practices of port environment management, the statement said.

The project is part of the National Infrastructure Pipeline and will complement initiatives of the Government of India envisioned by the Prime Minister, such as the PM Gati Shakti Master Plan and National Logistics Policy.

Also read: Centre gives go-ahead for Rs 4,767 crore Kerala highway project