Essar Ports has secured a letter of award from Deendayal Port Authority to develop an 18.33-million-tonne-a-year multipurpose cargo terminal at Tuna Tekra in Gujarat's Kandla port, marking a renewed push by the group to expand its ports business.
The project carries an estimated cost of Rs 2,276.06 crore, including an investment of Rs 1,552.57 crore by Essar Ports and Rs 723.49 crore by the port authority, the company said in a statement.
The terminal will be developed under a 30-year build-operate-transfer concession through the public-private partnership route, with Essar emerging as the highest bidder in a global competitive bidding process.
The project will add capacity for handling dry and other multipurpose cargo on India’s western coast, as the country seeks to expand port infrastructure to accommodate growing trade and improve logistics efficiency, it said.
The proposed facility will have four berths, each measuring 300 metres, providing a total berth length of 1,200 metres. It will be designed to accommodate vessels of up to 1,70,000 deadweight tonnes, with a draft capability of up to 18 metres, enabling the handling of larger ships and potentially improving economies of scale in cargo transport.
Deendayal Port Authority will provide common-user infrastructure, including dredging of the access channel, berth pockets and turning circles, as well as a common approach road. The terminal is to be developed in line with applicable environmental requirements and the Green Port Policy.
The additional capacity is expected to ease pressure on existing dry-cargo berths, improve turnaround and cargo-handling efficiency, and strengthen connectivity between the port and inland transport networks. The ability to accommodate larger vessels could also help improve shipping and logistics competitiveness.
For Essar, the award marks a strategic step in rebuilding and expanding its ports business in India and overseas. The group currently has about 60 million tonnes a year of operational port capacity across India, Indonesia and the United Kingdom.
"The Tuna-Tekra project marks a defining moment for Essar Ports as we embark on a new journey to rebuild and expand our ports business," Ashish Rajgarhia, chief executive officer of Essar Ports, said in a statement.
He described the project as the foundation for the company's next phase of growth.
The investment comes as India seeks to strengthen its maritime infrastructure to support rising trade volumes, improve supply-chain efficiency and expand the capacity of ports along key commercial corridors. Kandla, officially known as Deendayal Port, is a major gateway on the Gulf of Kutch and plays an important role in handling cargo for northwestern India.
The 30-year concession gives Essar a long-term operating stake in the facility, while the partnership model combines private-sector investment and terminal operations with public investment in shared port infrastructure.
V. Srinivasan, Operating Partner-Infrastructure, Essar Group, said: "Essar Ports is entering an important phase of its growth journey, focused on expanding its portfolio, strengthening its operational capabilities and creating sustainable long-term value. Our strategy is to build on our established expertise in port infrastructure while pursuing opportunities that support India's growing trade and infrastructure requirements." - PTI
