Deendayal Port Authority, Kandla signs Concession Agreement with DP World for the Development of Mega-Container Terminal at Tuna-Tekra.

New Delhi, 26th August 2023: The concession agreement ceremony was graced by the august presence of Shri Sarbananda Sonowal, Hon’ble Union Minister for Ports, Shipping & Waterways and AYUSH; His Excellency Sultan Ahmed Bin Sulayem, Group Chairman & CEO, DP World; Shri Shripad Naik, Hon’ble Minister of State for Ports, Shipping & Waterways and Tourism; Shri Shantanu Thakur, Hon’ble Minister of State for Ports, Shipping & Waterways; Shri T.K. Ramachandran, Secretary to the Govt. of India, MoPSW and other Senior officials of MoPSW and DP World. The Agreement was signed between Shri S.K. Mehta, IFS, Chairman, Deendayal Port Authority and Shri Rizwan Soomar, MD & CEO, DP World SCO & MENA in New Delhi on 25th August 2023.

The concession to develop the Mega-Container Terminal at Tuna-Tekra, Kandla, Gujarat was awarded to DP World in January 2023 by the Deendayal Port Authority, under the Build-Operate-Transfer (BOT) basis for a period of 30 years with an extension option a further 20 years.

The project involves the construction of a Mega-Container Terminal at Tuna-Tekra, a satellite facility at Deendayal Port, through a Public Private Partnership (PPP). The terminal is expected to commence operations by early in 2027. Once complete, it will include a 1,100m berth capable of handling next-generation vessels carrying more than 18,000 TEUs without any pre-berthing detention for want of the tide and will have a total capacity of 2.19 million TEUs per Annum.

The new terminal will cater to the future requirement of the hinterland across northern, western and central India, and further strengthen trade by connecting businesses from these regions to international markets. The project will be a 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. It is also aligned with the Indian Government’s Vision 2047, which aims to quadruple the country’s port handling capacity and efforts towards developing multimodal logistics infrastructure promoting economic growth.

Speaking on the occasion, the Union Minister of Ports, Shipping & Waterways and Ayush, Sarbananda Sonowal said, “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 Hon’ble 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”.

The new terminal will cater to the future requirement of the hinterland across northern, western and central India, and further strengthen trade by connecting businesses from these regions to international markets. 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. It is also aligned with the Indian Government’s Vision 2047, which aims to quadruple the country’s port handling capacity and efforts towards developing multimodal logistics infrastructure promoting economic growth.

Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, said: “We are honored to partner with Deendayal Port Authority in developing this new Mega-Container Terminal at Tuna-Tekra. It will enable DP World to deliver trade opportunities, by connecting Northern, Western and Central India with global markets, thereby driving value for all our stakeholders. India represents a significant landscape for opportunity. The signing of this concession agreement marks another milestone in our collective efforts with the National Investment and Infrastructure Fund to leverage DP World’s expertise in logistics infrastructure and local knowledge to strengthen India’s supply chain to support the growth of Trade and Industry.”

The new terminal will be constructed and equipped with most modern facilities and equipment over an area of approximately 63.4 Hectares. The terminal will be well connected to the hinterland through the network of roads, highways, railways and the Dedicated Freight Corridors.

The Mega Container Terminal at Deendayal Port, located strategically on the western coast of India, is a testament to the nation’s commitment to enhancing its maritime infrastructure.

This state-of-the-art terminal is poised to become a key hub for international trade and will contribute significan tly to India’s economic growth.

The Project shall not only bring a new era of Mega Container handling at Deendayal Port at Kandla, but also have a huge positive impact on economical & social scenario of the Kutch district and Gujarat region at large.

The project will entail the following benefits

1. Due to its strategic location (closest among all ports- Major or minor, to the densely populated and fast developing northern hinterland), the Container Terminal will help in decreasing the cost of container logistics in the country.
2. With deep draft and latest handling technology, the Container Terminal is expected to set up a new benchmark in productivity and ease-of-doing-business.
3. The Container Terminal is expected to transform the economic landscape of Kutch, with creation of several ancillary services (warehousing etc.) and direct and indirect employment opportunities to millions of people.
4. The Container Terminal, apart from earning royalties for DPA will also be a buoyant source of taxation income (direct and Indirect) to the GOI.
5. The Container Terminal is also likely to give a major fillip to infrastructure development in Gujarat with major investments needed from NHAI, and Railways. These are likely to help the development of other parts of the state as well, apart from Kutch.
6. The terminal will be well-connected to major road and rail networks, facilitating efficient transportation of cargo to various parts of the country. This connectivity is expected to reduce logistics costs and increase the competitiveness of Indian exports.
7. Environmental considerations will be at the forefront of the terminal’s design. Implementing eco-friendly practices, the terminal aims to minimize its carbon footprint, setting an example for sustainable port operations.
8. The development of the terminal will create a significant number of direct and indirect job opportunities, contributing to local employment and socio-economic development.