DP World has signed a new concession agreement to develop, operate and maintain a new 2.19 million TEU capacity mega-terminal at Kandla, located in the state of Gujarat on the west coast of India.
The concession is to run for a period of 30 years, with an option to extend by a further 20 years, on a Build-Operate-Transfer (BOT) basis.
This new facility is close to the existing Deendayal Port at Tuna-Tekra and will be developed at a total cost of around US$510 million.
When fully operational in 2027, the new terminal will offer 1100m of berthing, capable of handling ships of over 18,000TEU capacity. The concession features an option to extend the quay to 1375m.
The Deendayal Port Authority awarded the concession in January to Hindustan Infralog Private Limited – a joint venture between DP World and the National Investment and Infrastructure Fund (which is supported by the Government of India).
The new terminal will connect to Indian’s hinterlands through a network of roads and railways but will particularly target greater use of Dedicated Freight Corridors that link Northern, Western and Central India.
To emphasise this objective, the port is a 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.
DP World currently operates five container terminals in India. There are two in Mumbai, plus additional facilities in Chennai, Cochin and Mundra. The addition of the new Tuna Tekra operation will increase the company’s total container terminal capacity in the country to 8.19 million TEU per annum.
