DP World confirms AED1.8 billion for mega-container terminal in India
DP World, a leading global transportation, logistics, supply chain, storage, and technology provider, will invest AED1.8 billion to develop a new mega-container terminal at Tuna-Tekra in Gujarat, India.
Dubai-based DP World signed a Build-Operate-Transfer (BOT) agreement to this effect with the Gujarat-headquartered Deendayal Port Authority to develop, operate and maintain the new 2.19 million TEU per annum Tuna-Tekra mega-container terminal at Kandla in Gujarat state, located on India’s western coast.
The BOT concession is valid for 30 years and can extend for another 20 years.
The Deendayal Port Authority first awarded a concession in January 2023 to develop the Tuna-Tekra mega-container terminal to Hindustan Infralog Private Limited – a joint venture between DP World and National Investment and Infrastructure Fund, an Indian government-backed investment entity.
2027 completion
When completed in 2027, the mega-container terminal at Tuna-Tekra near the existing Deendayal Port will have advanced equipment and a 1,100m berth capable of handling next-generation vessels carrying more than 18,000 TEUs.
As part of the concession agreement, the berth can be further extended to 1,375m.
The Tuna-Tekra mega-container terminal will connect to Gujrat’s hinterland through a network of roads, highways, railways, and dedicated freight corridors, supporting the growing demand for logistics solutions from across Northern, Western and Central India and connecting businesses in India to global markets.
SK Mehta, Chairman of Deendayal Port Authority and Rizwan Soomar, MD and CEO, India Subcontinent, Middle East and North Africa, DP World, jointly signed the concession agreement on August 25, 2023, at a ceremony in New Delhi.
The agreement was signed in the presence of Sarbananda Sonowal, Indian Union Minister of Ports, Shipping and Waterways; Sultan Ahmed bin Sulayem, Group Chairman and CEO of DP World; and Shantanu Thakur, Indian Minister of State for Ports, Shipping and Waterways.
A first for India
SK Mehta, Chairman of Deendayal Port Authority, said: “We are delighted to partner with DP World in developing one of our pathbreaking projects at the Deendayal Port. The Tuna-Tekra mega-terminal will be one of the largest container terminals to be set up in India.
“It will help increase the port’s productivity and cargo handling capacity. 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,” Mehta added.
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.”
Employing 106,500 employees in 73 countries, 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 the Tuna Tekra facility, DP World will have a combined capacity of 8.19 million TEUs in India.
The Tuna-Tekra mega-container terminal will comply with Indian government-prescribed green port guidelines, ensuring sustainability in port operations by adopting best practices of port environment management contributing towards the long-term sustainability goals.
