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March 3, 2024

DP World to develop Tuna-Tekra Kandla container terminal

DP World , a global leader in supply chain solutions, has signed a concession agreement with India’s Deendayal Port Authority to develop, operate and maintain a new 2.19 million TEU per annum mega-container terminal at Tuna-Tekra Kandla in Gujarat.

The concession agreement was signed between Mr. S. K. Mehta, Chairman of Deendayal Port Authority and Mr. Rizwan Soomar, MD and CEO, of India Subcontinent, Middle East and North Africa, DP World. It was signed in the presence of Mr. Sarbananda Sonowal, Union Minister of Ports, Shipping and Waterways, Mr. Sultan Ahmed bin Sulayem, Group Chairman and CEO of DP World, Mr. Shantanu Thakur, Minister of State for Ports, Shipping and Waterways, at a ceremony in New Delhi.

The Deendayal Port Authority awarded the concession in January to develop the mega-container terminal to Hindustan Infralog Private Limited, a joint venture between DP World and the National Investment and Infrastructure Fund, India’s collaborative investment platform anchored by the Government of India. The concession is on a Build-Operate-Transfer (BOT) basis for a period of 30 years with the option to extend for another 20 years.

The project involves the construction of a mega-container terminal at Tuna-Tekra near the existing Deendayal Port, at a cost of approximately $510 million through a Public Private Partnership (PPP).

Once completed in 2027, the 2.19 million TEU per year terminal will have state-of-the-art equipment and a 1,100 m berth capable of handling next-generation vessels carrying more than 18,000 TEUs. As part of this concession agreement, the berth can be further extended to 1,375 m.

The terminal will connect to the hinterland through the network of roads, highways, railways and Dedicated Freight Corridors, supporting the growing demand for logistics solutions from across Northern, Western and Central India, connecting businesses in the regions to global markets.

DP World currently operates five container terminals in India, two in Mumbai, one each in Mundra, Cochin and Chennai, with a combined capacity of approximately 6 million TEUs. With the addition of Tuna Tekra, DP World will have a combined capacity of 8.19 million TEUs.

The project is part of the National Infrastructure Pipeline and will complement initiatives of the Government of India, such as the PM Gati Shakti Master Plan and National Logistics Policy. 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 contributing towards the long-term sustainability goals set out by the Government of India.

Mr. Sonowal said that “The signing of the concession agreement between Deendayal Port Authority and DP World is a momentous event indeed as it marks yet another significant breakthrough in building best-in-class infrastructure in India under the Public-Private Partnership model. The Project aligns with our Honorable Prime Minister’s Amrit Kaal Vision 2047 and would quadruple port handling capacity and develop multimodal logistics infrastructure to promote economic growth. Once operational, the terminal will play an important role in the government’s ambitious vision to make India an ‘Exports Hub’ as also support the creation of direct and indirect employment in various sectors such as transportation, distribution and supply chain.”

Mr. Mehta commented that “We are delighted to partner with DP World in developing one of our pathbreaking projects at the Deendayal Port. The Tuna-Tekra mega-terminal will be one of the largest container terminals to be set up in the country. It will help increase the productivity and cargo handling capacity of the port. The Indian Railways have recently approved the quadrupling of the Samakhiali, Gandhidham line, which will be a big boost for the upcoming container terminal at Tuna Tekra. In addition, we are in discussion to implement various other initiatives to enhance connectivity of Kandla and Tuna Tekra along with the Ministry of Road Transport and Highways and Indian Railways.”