Essar Ports Bags Massive Rs 2,276 Crore Tuna Tekra Terminal Project
Deendayal Port Authority awards the Tuna Tekra cargo terminal project to Essar Ports to boost India's maritime capacity.
In a major boost to India's maritime infrastructure, the Deendayal Port Authority (DPA), Kandla, has officially awarded the development of a multi-purpose cargo terminal at Tuna Tekra cargo terminal to Essar Ports Limited. The project, valued at approximately Rs 2,276.06 crore, was finalized after a global competitive bidding process where Essar Ports emerged as the highest bidder.
The Deal and Financial Framework
The project will be executed under the Public-Private Partnership (PPP) model on a Build-Operate-Transfer (BOT) basis. Essar Ports has secured a concession period of 30 years to operate the facility. As part of the agreement, the company will pay a royalty of Rs 61 per tonne to the DPA.
The financial breakdown of the project cost is as follows:
- Total Estimated Cost: Rs 2,276.06 crore
- Investment by Essar Ports (Concessionaire): Rs 1,552.57 crore
- Investment by DPA: Rs 723.49 crore
The DPA will be responsible for providing essential common-user infrastructure, which includes the dredging of berth pockets, turning circles, and the access channel, as well as the construction of a common approach road.
Technical Specifications and Capacity
Designed to be a powerhouse of cargo movement, the terminal is expected to handle 18.33 million tonnes of cargo annually. The facility will feature four berths, each 300 metres long, creating a total aggregate berth length of 1,200 metres.
One of the most significant technical advantages of this terminal is its ability to accommodate Cape-size vessels of up to 1,70,000 deadweight tonnes (DWT), supported by a deep draft capability of up to 18 metres. This infrastructure will allow for the use of larger ships, which is expected to lower fuel and freight costs while increasing overall shipping efficiency.
Strategic Importance and Economic Impact
The new terminal will be situated on the eastern side of the Mega Container Terminal at Tuna Tekra, which is currently being developed by DP World. This strategic location on India's western coast is intended to transform Kandla into a premier gateway for global trade.
Addressing Capacity Crunch
The need for this expansion is critical. Currently, DPA's existing dry-cargo berths are operating at over 90 per cent occupancy, significantly higher than the ideal benchmark of 70 per cent. The Tuna Tekra project will alleviate this pressure, enhancing cargo-handling capacity and improving the ease of doing business.
Regional and National Growth
Beyond logistics, the project is expected to trigger a wave of economic activity in Kutch and across Gujarat. This includes:
- Creation of direct and indirect employment opportunities.
- Growth in ancillary sectors such as warehousing and logistics.
- Increased public revenue through royalty receipts and tax contributions.
- Enhanced competitiveness for Indian exports in international markets.
Sustainability and Timeline
Aligned with the Green Port Policy, the terminal will integrate sustainable development initiatives and green technologies to minimize its environmental footprint throughout its planning, construction, and operational phases.
The formal Letter of Award (LoA) was handed over by DPA Chairman Sushil Kumar Singh to Ashish Rajgarhia, CEO of Essar Ports, and V Srinivasan, Operating Partner-Infrastructure Vertical. Commercial operations at the mega greenfield terminal are slated to begin by 2031.
The project reflects the Government of India's focus on developing world-class port infrastructure and advancing port-led economic development under the vision of Viksit Bharat.