Essar Ports Bags Massive 30-Year Cargo Terminal Project at Deendayal Port
Deendayal Port Authority issues LoA to Essar Ports for a Rs 2,276 crore multi-purpose cargo terminal at Tuna Tekra to boost India's maritime capacity.
In a significant move to bolster India's maritime infrastructure, the Deendayal Port Authority (DPA) in Kandla has issued a Letter of Award (LoA) to Essar Ports Limited. The agreement paves the way for the development of a state-of-the-art multi-purpose cargo terminal at Tuna Tekra, operating under a 30-year concession.
The Financial Blueprint and Bidding
The project will be executed via the Public-Private Partnership (PPP) model on a Build-Operate-Transfer (BOT) basis. Essar Ports secured the project after emerging as the highest bidder in a global competitive process, committing to a royalty payment of Rs 61 per tonne to the port authority.
The total estimated cost for the project stands at Rs 2,276.06 crore. The investment is split between the two parties, with the concessionaire, Essar Ports, investing Rs 1,552.57 crore, while the Deendayal Port Authority will contribute Rs 723.49 crore.
Technical Specifications and Capacity
Designed to be a powerhouse of cargo movement, the new terminal is expected to handle 18.33 million tonnes of cargo annually. The facility will be strategically located on the eastern side of the mega container terminal currently being developed by DP World at Tuna Tekra.
Key technical features of the terminal include:
- Berth Infrastructure: Four berths, each 300 metres long, totaling 1,200 metres of berth length.
- Vessel Capability: The terminal will be able to accommodate massive Cape-size vessels with a deadweight tonnage (DWT) of up to 1,70,000.
- Draft Depth: A draft capability of up to 18 metres to ensure the entry of large-scale ships.
To support this massive operation, the DPA will provide essential common-user infrastructure, including the dredging of turning circles, berth pockets, and the access channel, as well as a common approach road.
Solving the Congestion Crisis
The urgency of this project stems from the current state of DPA's dry-cargo berths. While the ideal occupancy level is around 70 per cent, the existing berths are currently operating at over 90 per cent capacity. This new terminal is expected to significantly ease this pressure.
By utilizing larger vessels and implementing modern cargo-handling systems, the project aims to improve overall operational efficiency, which in turn should lead to a reduction in fuel and freight costs.
Sustainability and Economic Impact
The development is not just about capacity but also about sustainability. The terminal will be built and operated in strict adherence to the Green Port Policy and environmental requirements, integrating green technologies into its construction and daily operations.
Beyond the docks, the project is poised to be an economic catalyst for the region. It is expected to generate numerous direct and indirect employment opportunities and stimulate growth in ancillary sectors such as warehousing and logistics across Gujarat and Kutch.
Looking Ahead
The project aligns with the Indian government's broader vision of port-led economic growth. Commercial operations at the Tuna Tekra multi-purpose terminal are expected to commence by 2031.
The formal handover of the Letter of Award was conducted by DPA Chairman Sushil Kumar Singh, who presented the document to Ashish Rajgarhia, CEO of Essar Ports, and V. Srinivasan, Operating Partner of the Infrastructure Vertical, in the presence of senior officials from both entities.