DP World Commits to Half-Billion Dollar Container Terminal During Vibrant Gujarat Summit
During the 10th Vibrant Gujarat Summit (#VGGS2024) which kicked off on 10 January 2024, DP World Chairman and CEO Sultan Ahmed Bin Sulayem announced that his company is going ahead with the container terminal at Kandla seaport. In 2017, Kandla port was renamed Deendayal port in honor of Pandit Deendayal Upadhyaya.
“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.”
DP World Chairman Ahmee Bin Sulayem
DP World is partnering with the Deendayal Port Authority to realize the greenfield Tuna Tekra container terminal under a Build-Operate-Transfer (#BOT) model. The concession agreement was sealed in New Delhi back in August 2023 in the presence of the Union Minister of Ports Sarbananda Sonowai and Gujarat State Minister for Ports Shantanu Thakur.
The period of the concession is 30 years, with the option to extend for another 20 years. A special purpose vehicle (#SPV) Hindustan Infralog was set up as a JV between UAE’s DP World and India’s National Investment and Infrastructure Fund (NIIF).
”The signing of the concession agreement between Deendayal Port Authority and DP World is a momentous event indeed as it marks yet another significant breakthrough in building best-in-class infrastructure in India under the Public-Private Partnership model. The Project aligns with our Honourable Prime Minister’s Amrit Kaal Vision 2047 and would quadruple port handling capacity and develop multimodal logistics infrastructure to promote economic growth.“
Indian Union Minister of Ports Sarbananda Sonowal
The new container terminal is designed for an annual capacity of 2 million twenty-foot equivalent units (#TEU). The berth will be able at the same time to accommodate two Ultra Large Container Carriers (#ULCC) of 400 meters with a load of 20,000 TEU each, with room to expand in the future. The cost of the new container port is estimated at USD 510 million which is to be financed via a Public-Private Partnership (#PPP).
It is worth noting that DP World already operates five container terminals around India in Chennai, Cochin, Mundra and another two in Mumbai. The combined throughput is 6 million TEU annually, Completion of the new terminal in Gujarat is expected by 2027 and this will bring the capacity of DP World in India up to 8 million TEU.
The Government of India has agreed to enhance #connectivity to the port via road and rail. The flagship project will contribute to turn Gujerat into the gateway to the Northern, Western and Central States as the State of Gujarat sets its target to develop into a USD 3 trillion economy.
The project is in line with the Amrit Kaal Vision 2047, Gati Shakti Master Plan and National Logistics Policy. In addition, the port is designed to be compliant with green and sustainability standards.