India Represents “Significant Landscape for Opportunity”, Says Dubai Port Operator
Dubai-based global port operator DP World has inked a concession agreement with Deendayal Port Authority in India to develop, maintain and operate a new 2.19 million TEU per year mega-container terminal at Kandla in western Gujarat state.
The Tuna-Tekra terminal, located close to the existing Deendayal Port, one of India’s busiest ports, will cost US$510 million to build, DP World said in a filing.
DPA earlier this year awarded the concession to build the terminal, one of the largest greenfield infrastructure projects in India’s ports sector, to Hindustan Infralog, a joint venture between DP World and India’s National Investment and Infrastructure Fund.
The concession is on a build-operate-transfer, or BOT, basis for a 30-year period with the option to extend for a further 20 years.
The terminal is slated for completion in 2027 and will feature a 1,100-meter berth capable of handling next-generation vessels carrying more than 18,000 TEUs. The terms of the concession allow for the berth to be extended by 275 meters.
“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,” said S.K. Mehta, chairman of DPA.
“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 discussions to implement various other initiatives to enhance connectivity of Kandla and Tuna-Tekra along with the Ministry of Road Transport and Highways and Indian Railways.”
DP World’s chairman and CEO Sultan Ahmed Bin Sulayem said India represented “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,” the executive said.
DP World currently operates five container terminals in India – two in Mumbai and one each in Mundra, Cochin and Chennai – with a combined capacity of some 6 million TEUs.
The Tuna-Tekra facility will link to the hinterland through a network of roads, highways, railways and dedicated freight corridors and will support rising demand for logistics solutions across Northern, Western and Central India, the Dubai-based operator said.
DP World will be exhibiting at Breakbulk Americas 2023, taking place on 26-28 September at the George R. Brown Convention Center in Houston, Texas.
