The new terminal is slated to complete in 2027. Credit: DPWorld.

UAE-based logistics company DP World has entered into a concession agreement with the Deendayal Port Authority to build, manage, and maintain a mega-container terminal with an annual capacity of a new 2.19 million twenty-foot equivalent units (TEU) at Kandla in the Indian state of Gujarat.

Scope of the project includes building a mega-container terminal in Tuna-Tekra close to the existing Deendayal Port at an estimated cost of around $510m via a public private partnership (PPP) mode.

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The terminal, which is slated to be completed in 2027, will feature state-of-the-art equipment and a 1,100m berth capable of handling next-generation vessels carrying over 18,000 TEUs.

The berth may be expanded to 1,375m as part of the concession agreement.

Furthermore, the terminal will be linked to the hinterland by a network of roads, highways, trains, and dedicated freight corridors.

In January this year, the Deendayal Port Authority awarded the concession to Hindustan Infralog, a joint venture formed by DP World and Indian’s government’s National Investment and Infrastructure Fund, to build the mega-container terminal.

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The concession is for 30 years on a build-operate-transfer (BOT) basis, with an option for an extension for an additional 20 years.

The container terminal will be built to be compatible with green port rules, enabling sustainability in port operations by leveraging the best practices in port environment management and supporting the Government of India’s long-term sustainability goals.

Indian Government’s Union Minister for Ports, Shipping & Waterways Sarbananda Sonowal said: “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.”

Deendayal Port Authority chairman SK Mehta said: “The Tuna-Tekra mega-terminal will be one of the largest container terminals to be set up in the country.

“It will help increase the productivity and cargo handling capacity of the port. 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.”

DP World Group chairman and CEO Sultan Ahmed bin Sulayem 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.”