Gujarat: Rs 4,200-Crore Tuna-Tekra Mega Container Terminal At Kandla To Start By 2027

The mega-container terminal at Tuna-Tekra near the existing Deendayal Port in Kandla, Gujarat is expected to commence operations by early 2027.

The concession agreement to develop the Rs 4,500-crore next-gen terminal was signed between the Deendayal Port Authority and Dubai-based DP World in Delhi, on Friday (25 August).

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 basis for a period of 30 years, with the option to extend for another 20 years. 

Location

Kandla Port is one of the 12 major ports and country’s biggest state-owned port by volume. The port is well connected by the network of rail and road, and serves as the gateway for the trade generating from/to the entire northern India.

The existing facilities at Kandla are located within Kandla creek. To enhance the cargo handling capacity and to handle bigger size vessels, the port has initiated action to develop the port facilities outside Kandla creek — at Tuna-Tekra in the Gulf of Kutch, within port limits.

The proposed container terminal at Tuna-Tekra is approximately 30 km away from the existing Kandla Port, about 1 km east from dry bulk terminal being constructed by the Adani group, and 40 km east of Mundra port.

2.19 Million TEU Terminal

The Union Cabinet in October 2022 had approved development of the container terminal at Tuna-Tekra under public-private-partnership (PPP) mode at an estimated cost of Rs 4,500 crore.

The Tuna-Tekra greenfield mega container terminal will entail an estimated investment of Rs 4,243.64 crore and an additional Rs 300 crore will be invested by the Deendayal Port Authority.

The terminal, once complete, will have a total capacity of 2.19 million twenty-foot equivalent units (TEUs) per annum.

It will also have a 1,100 m berth capable of handling next-generation vessels carrying more than 18,000 TEUs without any pre-berthing detention for want of tide. As part of the 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. 

According to Union Minister of Ports, Shipping and Waterways, Sarbananda Sonowal, the signing of the concession agreement is a significant breakthrough in building best-in-class infrastructure in India under the PPP model.

“The project 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 vision to make India an ‘Exports Hub’ and also support the creation of direct and indirect employment in sectors such as transportation, distribution and supply chain,” Sonowal said following the signing of the concession.

The Indian Railways has recently approved the quadrupling of Samakhiali-Gandhidham line, which will be a big boost for the upcoming container terminal at Tuna-Tekra.

In addition, the Deendayal Port is in discussion with the Ministry of Road Transport and Highways and Indian Railways to implement various other initiatives to enhance connectivity of Kandla and Tuna-Tekra terminals.