DP World to invest $510m to develop mega-container terminal in this country

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.

The concession agreement was signed on August 25.

According to the state news agency WAM, 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, India’s collaborative investment platform anchored by the government of India.

The concession is on a build-operate-transfer 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 $510m through a public private partnership (PPP).

Highlights of the terminal hat DP World will develop

Once completed in 2027, the 2.19 million TEU per year terminal will have state-of- the- art equipment and a 1,100-metre 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 metres.

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, according to the WAM report.

DP World currently operates five container terminals in India – two in Mumbai, one each in Mundra, Cochin and Chennai – with a combined capacity of approximately six million TEUs. With the addition of Tuna Tekra, DP World will have a combined capacity of 8.19 million TEUs.

The container terminal will be fully compliant with the green port guidelines.

India’s Union Minister of Ports, Shipping & Waterways, Sarbananda Sonowal said, “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.”

S.K. Mehta, chairman, Deendayal Port Authority, commented, “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. 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 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 of DP World, said, “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.”

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