Essar Ports Limited receives a Letter of Award to develop a multi-purpose cargo terminal at Kandla.
Surat (Gujarat) [India], October 22: Deendayal Port Authority, Kandla, a Mega Port on India’s western coast, has issued the Letter of Award (LoA) to M/s Essar Ports Limited on 21st October 2026 for development of the Multi-Purpose Cargo Terminal at Tuna Tekra, Kandla. The project will be implemented on a Build-Operate-Transfer (BOT) basis under the Public-Private Partnership (PPP) mode for a concession period of 30 years, marking a significant step towards strengthening India’s maritime infrastructure.
M/s Essar Ports Limited emerged as the highest bidder through a global competitive bidding process, offering a royalty of ₹61 per tonne payable to DPA. The terminal will be developed on the eastern side of the Mega Container Terminal of DPA being developed by DP World under PPP Mode at Tuna Tekra. The project is expected to augment DPA’s multipurpose cargo-handling capacity and support the long-term growth of domestic and EXIM trade.
Under the visionary leadership of Hon’ble Prime Minister Shri Narendra Modi ji, India is witnessing a transformative era of maritime infrastructure development, driven by the vision of Viksit Bharat and port-led economic growth. Aligning with this vision, DPA Kandla, is rapidly emerging as a strategic gateway to global trade, maritime connectivity and economic prosperity, with world-class infrastructure, enhanced cargo-handling capabilities and sustainable development initiatives positioning Kandla as a major catalyst in India’s journey towards becoming a global maritime powerhouse.
On the occasion, Shri Sushil Kumar Singh, IRSME, Chairman, DPA, formally handed over the Letter of Award to Mr. V. Srinivasan, Operating Partner-Infrastructure Vertical, and Mr. Ashish Rajgarhia, Chief Executive Officer, Essar Ports, in the presence of senior officials of Deendayal Port Authority and Essar Ports Limited.
Project overview and key particulars
Strategically located on India’s western coast, the proposed Mega Greenfield Terminal is a significant step towards strengthening the country’s maritime infrastructure, enhancing cargo-handling capacity and facilitating trade growth. The project reflects the Government of India’s commitment to developing world-class port infrastructure and advancing port-led economic development.
The terminal is designed for an annual cargo-handling capacity of 18.33 million tonnes. The estimated project cost is ₹2,276.06 crore, comprising ₹1,552.57 crore to be invested by the concessionaire and ₹723.49 crore by DPA. DPA will provide common-user infrastructure, including dredging of the access channel, berth pockets and turning circles, along with a common approach road.
The facility will comprise four berths, each 300 m long, providing an aggregate berth length of 1,200 m. It is planned to accommodate Cape-size vessels of up to 1,70,000 DWT, with draft capability of up to 18 m. Commercial operations are expected to commence by 2031.
The terminal will be developed and operated in accordance with applicable environmental requirements and the Green Port Policy, with sustainability considerations integrated into its planning, construction and operations.
Expected benefits
- Higher capacity and efficiency: Modern cargo-handling systems and deep-draft infrastructure are expected to improve productivity, operational efficiency and ease of doing business.
- Decongestion of existing berths: Additional dry-cargo capacity is expected to ease pressure on DPA’s existing dry-cargo berths, which are currently operating at over 90% berth occupancy compared with the indicated ideal level of 70%.
- Improved logistics competitiveness: The use of larger vessels is expected to support more efficient shipping, reduce freight and fuel costs, and improve cargo movement.
- Stronger multimodal connectivity: Connectivity with major road and rail networks will support faster and more cost-effective evacuation of cargo and strengthen the competitiveness of Indian exports.
- Employment and regional development: The project is expected to create direct and indirect employment and promote ancillary activities in logistics, warehousing and allied services across Kutch and Gujarat.
- Revenue and trade growth: Royalty receipts for DPA, along with wider economic activity and tax contributions, are expected to support public revenues and facilitate trade with international markets.
- Sustainable port development: Integration of environmentally sustainable practices and green technologies is intended to minimise the terminal’s environmental footprint and support sustainable port-led growth.
The Multi-Purpose Cargo Terminal is expected to strengthen DPA’s cargo-handling capability, improve the efficiency of India’s trade logistics and contribute to port-led economic growth in Gujarat and the wider hinterland.
“Strengthening India’s gateways to global trade”
