DP World has 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 on India’s western coast.
he 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 complete 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 to support the growing demand for logistics solutions from across Northern, Western and Central India, connecting businesses in the regions to global markets.
The concession agreement was signed between S. K. Mehta, Chairman of Deendayal Port Authority and Rizwan Soomar, MD & CEO, India Subcontinent, Middle East and North Africa, 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 of DP World, 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 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 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.
… commented Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World
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.
According to DP World, 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.
Meanwhile, Rajiv Dhar, CEO and Managing Director, National Investment and Infrastructure Fund believes that this project will create significant value for end-users and help the government achieve its goal of reducing logistics costs for trade.
Union Minister of Ports, Shipping & Waterways, Sarbananda Sonowal also noted that 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.
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.
… added S.K. Mehta Chairman, Deendayal Port Authority