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DP World expands in India with $510 million Tuna Tekra container terminal

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DP World inks a concession agreement with the Deendayal Port Authority to develop, operate and maintain a new 2.19 milion teu capacity container terminal at Kandla in Gujarat on India’s western coast.

The Deendayal Port Authority awarded the concession in January to develop the 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 container terminal will be built at Tuna-Tekra near the existing Deendayal Port, at a cost of approximately $510 million through a Public Private Partnership (PPP).

Scheduled for completion in 2027, the 2.19m teu-terminal will have state of the art equipment and a 1,100m berth capable of handling next-generation 18,000 teu-vessels. As part of this concession agreement the berth can be further extended to 1,375m.

The terminal will cater to future trade demand from Northern, Western and Central India, connecting the regions to global markets.

"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, " said the Union Minister of Ports, Shipping & Waterways, Sarbananda Sonowal.

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 6m teu. With the addition of Tuna Tekra, DP World will have a combined capacity of 8.19m teu.

Sultan Ahmed bin Sulayem, Group Chairman and CEO of DP World, 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. India represents a significant landscape for opportunity.”

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.

S.K. Mehta Chairman, Deendayal Port Authority commented: "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,” commented S.K. Mehta Chairman, Deendayal Port Authority.