DP World has signed a concession agreement with the India's Deendayal Port Authority to develop, operate and maintain a new 2.19 million TEUs per annum mega-container terminal at Kandla in Gujarat on the country’s western coast. The mega-container terminal will be built at a cost of $510 million.
The project is part of the National Infrastructure Pipeline and will complement initiatives such as the PM Gati Shakti Master Plan and National Logistics Policy, the pet projects of Prime Minister Narendra Modi.
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.
The Deendayal Port Authority had awarded the concession in January to develop the mega-container terminal to Hindustan Infralog Private Limited - a joint venture between Dubai-based DP World and National Investment and Infrastructure Fund, India’s collaborative investment platform anchored by the Modi government.
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).
The concession agreement was signed by SK Mehta, Chairman of Deendayal Port Authority and Rizwan Soomar, MD & CEO, India Subcontinent and Mena, DP World 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 held in New Delhi.
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.
DP World said 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.
The company currently operates five container terminals in India - two in Mumbai, one each in Mundra, Kochi and Chennai – with a combined capacity of 6 million TEUs.
With the addition of Tuna Tekra, DP World will have a combined capacity of 8.19 million TEUs, it added.
Speaking on the occasion, Sonowal said: "The signing of the concession agreement is a momentous event indeed as it marks yet another significant breakthrough in building best-in-class infrastructure in India under the PPP model. The project aligns with our Prime Minister Modi’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," he added.
Mehta expressed delight at partnership with DP World in developing one of its 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. 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," he noted.
"The Indian Railways have recently approved the quadrupling of 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," he added.
Bin Sulayem said this project will enable DP World to deliver trade opportunities, by connecting Northern, Western and Central India with global markets, thereby driving value for all its 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," he added.
National Investment and Infrastructure Fund CEO and Managing Director Rajiv Dhar said: "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," he added.
