DP World to invest $510 million in Tuna-Tekra terminal in India
UAE-based ports and logistics giant DP World has signed a concession agreement with the Deendayal Port Authority to develop, operate and maintain Tuna-Tekra terminal in India.
As informed, Tuna-Tekra terminal is a new 2.19 million TEU per annum mega-container terminal at Kandla in Gujarat on India’s western coast. The company plans to invest $510 million.
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.
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 $510 million through a Public Private Partnership (PPP).
Once complete in 2027, the 2.19 million TEU per year terminal will have new 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.
“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,” Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World said.
“The Project aligns with our Honourable Prime Minister’s Amrit Kaal Vision 2047 and would quadruple port handling capacity and develop multimodal logistics infrastructure to promote economic growth. 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,” Union Minister of Ports, Shipping & Waterways, Sarbananda Sonowal 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,” S.K. Mehta Chairman, Deendayal Port Authority commented.
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.