Contract awarded to Hindustan Infralog Pvt. Ltd. (with DP World) for mega container handling under PPP mode at Deendayal Port at Tuna Tekra, Kandla

The Deendayal Port Authority, the No.1 Major Port of the Nation, has embarked upon developing a ‘State of Art’ Mega Container Terminal at Tuna Tekra, Kandla, under PPP mode, for a concession period of 30 years, through a global competitive bidding process, to be developed in the adjacent East side of existing Dry Bulk Terminal, currently being operated by AKBTPL.

M/s. Hindustan Infralog Pvt. Ltd. (D P World) has emerged as the Highest Bidder for becoming the ‘Concessionaire’ of the subject project, by offering ‘Royalty’ of Rs.6500/- per TEU. This is also the highest bid ever received in a PPP project.

This Project, which was conceived in the year 2013 is now going to see the light of day.
The Project entails an investment of about Rs 4500 Cr, which is the highest capital investment ever in a PPP project at any of the Major ports of India.

This Mega Container Terminal Project is envisaged for a handling capacity of 2.19 Million TEUs per annum, with an Estimated Project Cost of Rs.4243.64 Crores for the Concessionaire and Rs.296.20 Crores for the Authority. DPA will invest in the common basic infrastructure viz Access Channel for navigation of vessels and roads.

The project facility shall cater to container vessels of size up to 21000 TEUs, with a draught of 18 M, without any pre-berthing detention for want of the tide. The operations of the Terminal are expected to start in early 2026.

The importance of this project can be realized from the fact that this project is a part of the Hon’ble Prime Minister’s vision of ‘Sagarmala’ and ‘PM Gati Shakti National Master Plan’ and the implementation of the project is being monitored by the PMO.

Therefore, the project was structured and global publicity was adopted under the guidance of the Ministry of Ports, Shipping and Waterways, wherein a mega Road Show was also organized in Mumbai, in order to successfully conclude the bidding process. The project has already been apprised by the PPPAC and approved by the Union Cabinet, GoI. Also, MoEF&CC has granted Environment Clearance to the project.

The successful implementation of the project shall not only bring a new era of Mega Container handling at Deendayal Port at Kandla but also have a huge positive impact on the economical & social scenario of the Kutch district and Gujarat region at large.

The project will entail the following benefits
1) Due to its strategic location ( closest among all ports- Major or minor, to the densely populated and fast-developing northern hinterland), the project will help decrease the cost of container logistics in the country
2) with deep draft and the latest handling technology, the port is expected to set up a new benchmark in productivity and ease of doing business
3) the port is expected to transform the economic landscape of Kutchh, with the creation of several ancillary services ( warehousing, etc) and direct and indirect employment opportunities for millions of people.
4)The port, apart from earning royalties for DPA will also be a buoyant source of taxation income ( direct and Indirect ) to the GOI
5) The port is also likely to give a major fillip to infrastructure development in Gujarat with major investments needed from NHAI, and Railways. These are likely to help the development of other parts of the state as well, apart from Kutch.