FCC

India's Deendayal Port and DP World Create ₹4.2K Cr Terminal Venture

2023-08-28

The Deendayal Port Authority (DPA) is preparing to enter into a concession agreement with DP World, a Dubai-based multinational logistics company. This agreement pertains to the establishment, operation, and maintenance of a new expansive container terminal at Tuna-Tekra, Gujarat, near Kandla.

Under this agreement, the project involves the creation of a mega-container terminal at Tuna-Tekra, near Kandla, through a public-private partnership (PPP) model, at a projected cost of ₹42.43 billion. Once finalized, this terminal will have the capacity to handle 2.19 million container units (TEUs) annually, accommodating next-generation vessels capable of carrying over 18,000 TEUs.

The primary objective of the new terminal is to address the future trade demands of northern, western, and central India, fostering global market connections for these regions. The initiative aligns with the Indian Government's Vision 2047, which aims to significantly expand port handling capacity and develop a multimodal logistics infrastructure to stimulate economic growth.

The project's agreement spans 30 years and involves a Special Purpose Vehicle (SPV) created by Hindustan Infralog Private Limited, a joint venture between DP World and the National Investment and Infrastructure Fund (NIIF). This agreement operates on a Build-Operate-Transfer (BOT) basis, with the potential to extend up to 50 years.

Emphasizing environmental sustainability, the container terminal will adhere to green port guidelines, integrating best practices for managing the port environment. This approach contributes to the long-term sustainability goals outlined by the Indian Government.

The project's benefits encompass enhanced operational efficiency, including reduced congestion at Kandla creek, improved handling of mega-container vessels, decreased turnaround time, and the establishment of resilient and efficient supply chains within the country.

Facilitated by a comprehensive network of roads, railways, and highways, the terminal will serve as a pivotal connection between the hinterland and global markets.

This project is a key component of the National Infrastructure Pipeline and will complement the objectives of government initiatives such as the PM Gati Shakti Master Plan and National Logistics Policy, as envisioned by the Prime Minister.