Major step of MoPSW towards Public-Private Partnership with Rs. 4,243.64 crore Mega Terminal Project at Kandla,Gujarat

IAS Prelims 2023

azadi ka amrit mahotsav


• Annual capacity of 2.19 million TEU

• 1,100m berth to handle next-generation vessels

• Fully compliant with the green port guidelines

• The terminal will connect Northern, Western and Central India with Global market

• The project aligns with India’s Vision 2047 to quadruple port handling capacity

• The terminal will be a part of the National Infrastructure Pipeline complementing PM Gati Shakti

A concession agreement signed between Deendayal Port Authority and DP World in the presence of Shri Sarbananda Sonowal,  Union Minister for Ports, Shipping & Waterways and AYUSH, HE Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World; Mr. Rizwan Soomar, DP World, CEO & MD, Middle East, North Africa and India, Shri Sanjay Mehta, IFS, Chairperson and other senior officials of the ministry in New Delhi.

This state-of-the-art container terminal at Tuna-Tekrawill cater to future trade demand from Northern, Western and Central India, connecting the regions to global markets.

The project involves the construction of a mega-container terminal at Tuna-Tekra near the existing Deendayal Port, at a cost of Rs 4,243.64 crores (~$510 million) through a Public Private Partnership (PPP). Once completed the terminal will have an annual capacity of 2.19 million TEUs, and will include a 1,100m berth capable of handling next-generation vessels carrying more than 18,000 TEUs.

The Container Terminal is expected to transform the economic landscape of Kutch, with creation of several ancillary services like warehousing, etc. and also result in creation of direct and indirect employment opportunities to hundreds of people.

In addition to increasing the business potential of Kandla, the project will boost the economy and generate employment. The container terminal will be fully compliant with the green port guidelines ensuring sustainability in port operations by adopting best practices of port environment management contributing towards the long-term sustainability goals set out by the Government of India.

This concession agreement is a part of the Union Minister  Shri Sarbananda Sonowal’s mega target of identifying investment opportunities of more than 10 lakh crores in Indian Maritime Sector for the upcoming Global Maritime Summit 2023 from 17th-19th October 2023 at Bharat Mandapam, Pragati Maidan, New Delhi which is being organised by MoPSW. This Summit will showcase global best practices, foster investment partnerships and chart a new and bright course for our collective future. The GMIS 2023 will also provide a stage to 60+ countries, exhibitors and investors from various domains of the maritime sector.

During the event, Shri Sonowal said, ‘The project for which agreement has been signed today was approved on PPP model by the Cabinet Committee on Economic Affairs chaired by our visionary Hon’ble Prime Minister Shri Narendra Modi ji in October 2022. This project would give impetus to India’s containerization growth’.

‘This project is aligned with our Hon’ble Prime Minister’s Amrit Kaal Vision 2047 and would quadruple port handling capacity and develop multimodal logistics infrastructure to promote economic growth. The project is expected to add operational efficiency to the Port in terms of reduced congestion at Kandla creek, enhanced ability to handle deep draft vessels, reduction of turnaround time to 0.5-1 day and driving Port towards becoming a Mega Port’, he added.

About the Port

Deendayal Port is one of the twelve Major Ports in India and is located on the West Coast of India, in the Gulf of Kutch in the State of Gujarat. Deendayal Port primarily services northern India, including the land locked Jammu and Kashmir, Uttar Pradesh, Madhya Pradesh and Rajasthan.

Due to its strategic location, the Container Terminal will help in decreasing the cost of container logistics in the country. With deep draft and latest handling technology, the Container Terminal is expected to set up a new benchmark in productivity and ease of doing business. The Container Terminal is expected to transform the economic landscape of Kutch, with creation of several ancillary services like warehousing, etc and also result in creation of direct and indirect employment opportunities to millions of people.The Container Terminal is also likely to give a major fillip to infrastructure development in Gujarat. These are likely to help the development of other parts of the state as well, apart from Kutch.



Source PIB