DP World has announced an investment of $510m in a mega-container terminal at Kandla in Gujarat.
DP World signed an agreement with the Deendayal Port Authority to develop, operate and maintain the new 2.19 million TEU per annum facility on India’s western coast.
The Deendayal Port Authority awarded the concession in January to develop the mega-container terminal to Hindustan Infralog Private Limited, a joint venture between DP World and National Investment and Infrastructure Fund, India’s collaborative investment platform anchored by the Government of India.
DP World invests in India
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 $510m through a Public Private Partnership (PPP).
Once completed 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.
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.
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 6 million TEUs.
With the addition of Tuna Tekra, DP World will have a combined capacity of 8.19 million TEUs.
The project is part of the National Infrastructure Pipeline and will complement initiatives of the Government of India, such as the PM Gati Shakti Master Plan and National Logistics Policy.
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.
India’s Union Minister of Ports, Shipping and Waterways, Sarbananda Sonowal said: “The signing of the concession agreement between Deendayal Port Authority and DP World is a momentous event.
“It marks yet another significant breakthrough in building best-in-class infrastructure in India under the Public-Private Partnership model.
“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.”
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.
“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.”
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