DPA Kandla awarded the Concession to DP World for “Container Terminal at Tuna Tekra on BOT basis”

GANDHIDHAM : Deendayal Port Authority (DPA), Kandla the No.1 Major Port of India, proudly announces a significant milestone in its history with the awarding of the Concession for the “Container Terminal at Tuna Tekra on BOT basis under PPP Mode” to DP World on Thursday (14.03.2024). The ceremony, held 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 earlier signed on 25th August 2023, in the esteemed presence of Shri Sarbananda Sonowal, Hon’ble Union Minister, and Shri Shantanu Thakur, Hon’ble Minister of State of MoPSW 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 highestcapital 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.

The ceremony held today, marks a transformative journey towards developing a ‘State of Art’ Mega Container Terminal, symbolizing DPA’s commitment to excellence and innovation.

The ceremony was graced by Shri S.K. Mehta, IFS, Chairman-DPA in the presence of Shri Nandeesh Shukla, IRTS, Dy. Chairman; Shri J.K. Rathod, Chief Vigilance Officer; Shri V. Raveendra Reddy, Chief Engineer; Shri Suresh Joseph, Director-Project Tuna Tekra (DP World); senior officials of Port; stakeholders, Port users, trade unions and employees at large.