Deendayal Port Authority (DPA), Kandla the No.1 Major Port of India, announced that it awarded the Concession for the “Container Terminal at Tuna Tekra on BOT basis under PPP Mode” to DP World on 14.03.2024. The ceremony marks a transformative journey towards developing a ‘State of Art’ Mega Container Terminal, symbolizing DPA’s commitment to excellence and innovation in port infrastructure development.
The project, located adjacent to the existing Dry Bulk Terminal in Tuna Tekra, Kandla, signifies DPA’s dedication to meeting global trade and maritime logistics needs. Awarded through a rigorous global competitive bidding process in January 2023, the Build-Operate-Transfer (BOT) concession spans 30 years, with an option to extend for an additional 20 years.
The Concession Agreement was signed on 25th August 2023, in the esteemed presence of Shri Sarbananda Sonowal, Hon’ble Cabinet Minister, and Shri Shantanu Thakur, Hon’ble Minister of State, whose support has been invaluable. Noteworthy is the virtual foundation stone laying by Hon’ble Prime Minister Shri Narendra Modi on 17th October 2023, underlining the government’s commitment to infrastructural development and economic growth.
The investment of approximately Rs. 4500 Cr in this project marks the highest capital investment in a PPP project at any Major port in India, showcasing global confidence in DPA’s potential. DP World’s bid of Rs.6500/- per Container for Royalty is also the highest in a PPP project in Major Ports of India.
The terminal, expected to commence operations by early 2027, boasts a 1,100m berth capable of handling next-generation vessels carrying over 18,000 TEUs, with a total capacity of 2.19 million TEUs per Annum. DP World’s Royalty share of about Rs. 1500 crores per annum on optimal capacity operation showcases the project’s economic benefits.
The Concession Agreement allows commercial flexibility for dynamic market adaptation, fostering innovation and efficiency in port operations. DPA has fulfilled obligations by completing the four-lane Approach Road up to the terminal’s Back-up area.
The terminal’s strategic location will reduce logistics costs, increase trade efficiency, attract shipping lines, and stimulate economic growth, transforming the region’s economic landscape and generating employment opportunities.
This milestone reinforces DPA’s commitment to excellence, innovation, and inclusive growth, with gratitude extended to stakeholders for their support. Together, we embark on a transformative journey towards a brighter, more prosperous future for our nation and its people.
Sanjay K. Mehta, Chairman expressed his great pleasure to announce this signing in ceremony as a significant milestone in the history of Deendayal Port Authority. He stated that, we have embarked upon a transformative journey to develop a ‘State of the Art’ Mega Container Terminal at Tuna Tekra, Kandla, under the Public-Private Partnership (PPP) mode, a project that signifies our commitment to excellence and innovation in port infrastructure development.
“This monumental project, being developed in the adjacent East side of our existing Dry Bulk Terminal, symbolizes our dedication to meeting the evolving needs of global trade and maritime logistics. Through a rigorous global competitive bidding process, we have awarded the Project to DP World, a renowned leader in port operations and management, in January 2023 under the Build-Operate-Transfer (BOT) basis for a period of 30 years, with an extension option for a further 20 years,” Mehta said.
Suresh Joseph, Vice President, Projects, Ports & Terminal Kandla, DP World stated that the Tuna Tekra container terminal is the most recent investment of DP World, and hence, qualifies as the youngest child in the DP World cradle.
“This mega container terminal will have an annual throughput capacity of 2.19 million TEUs, thus aligning with the Government’s Amrit Kaal Vision 2047, aiming to quadruple the country’s port handling capacity. DP World is investing over US$500 million to develop, operate and maintain the state-of-the-art mega container terminal. This will help unlock future container traffic growth in India, cater to exports and imports from northern, western, and central India, reduce logistics costs and enhance efficiencies across supply chains, Joseph said.
Nandeesh Shukla, Deputy Chairman, said that it is a very proud achievement and a very big day for not only Deendayal Port, but also the entire Gandhidham and Kutch Region as there will be tremendous growth in all the sectors of Gandhidham due to the very huge project being developed by the DP World.
While delivering the Vote of Thanks, V. Raveendra Reddy, Chief Engineer, expressed his deepest gratitude to the Chairman for his visionary leadership, unwavering support, and dedication to the development of Deendayal Port. He also praised Deputy Chairman for his invaluable insights, support and encouragement. He appreciated to everyone who has contributed to the success of this event and the realization of this crucial project.
A large number of officials from DPA, Trade Bodies and Trade Unions attended the function. The function organised by the Business Development Cell of DPA under the leadership of Om Prakash Dadlani, PRO and BDC In charge.
