DP World to invest $510mn to develop Tuna-Tekra container terminal
Located in Kandla, Gujarat, the greenfield terminal will be capable of handling vessels carrying more than 18,000 TEUs
DP World signed a concession agreement with the Deendayal Port Authority to develop, operate and maintain a new 2.19 million TEU per annum mega-container terminal at Kandla in Gujarat.
"The concession agreement was signed between S. K. Mehta, Chairman, Deendayal Port Authority and Rizwan Soomar, MD & CEO, India Subcontinent, Middle East and North Africa, DP World," says a release from DP World. "It was signed in the presence of Sarbananda Sonowal, Union Minister of Ports, Shipping and Waterways, Sultan Ahmed bin Sulayem, Group Chairman and CEO, DP World and Shantanu Thakur, Minister of State for Ports, Shipping and Waterways at a ceremony in New Delhi."
The project involves the construction of a mega-container terminal at Tuna-Tekra near the existing Deendayal Port at a cost of approximately Rs 4,243.64 crore ($510 million) through a public private partnership (PPP).
The Deendayal Port Authority awarded the concession in January to develop the mega-container terminal to Hindustan Infralog - a joint venture between DP World and National Investment and Infrastructure Fund, a collaborative investment platform anchored by the central government, the release added. 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 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 PPP model," says Union Shipping Minister Sarbananda Sonowal. "The project aligns with our 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 and also support the creation of direct and indirect employment in various sectors such as transportation, distribution and supply chain."
S.K. Mehta, Chairman, Deendayal Port Authority adds: “We are delighted to partner with DP World in developing one of our path breaking 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. As one of India’s busiest ports, we are committed to enhancing our capacity to serve the nation and businesses by reducing congestion and driving trade efficiencies. 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 Ministry of Road Transport and Highways and Indian Railways.”
Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World says: “We are honoured 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 further strengthen India’s supply chain to support the growth of trade and industry.”
Rajiv Dhar, CEO and Managing Director, National Investment and Infrastructure Fund says: “We are excited to collaborate with Deendayal Port Authority and DP World to develop one of the largest greenfield infrastructure projects in India’s ports sector on a PPP basis. This project will create significant value for end-users and help the government achieve its goal of reducing logistics costs for trade. This project is a testament to our ability to drive large-scale infrastructure development by partnering with strategic players.”
Once complete in 2027, the 2.19 million TEU per year terminal will have state-of-the-art equipment and a 1,100m berth capable of handling next-generation vessels carrying more than 18,000 TEUs. As part of the concession agreement, the berth can be extended to 1,375m.
DP World currently operates five container terminals in India – two in Mumbai and 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 release added.