Essar Ports wins ₹2,276 cr contract to build cargo terminal at Kandla

Essar Ports Ltd has received a letter of award (LOA) from Deendayal Port Authority (DPA) to develop an 18.33 million tonne per annum (MTPA) multipurpose cargo terminal at Tuna Tekra in Kandla, Gujarat, with a total estimated project cost of ₹2,276.06 crore.

The project will be developed under the build-operate-transfer (BOT) model through a public-private partnership (PPP). Essar Ports emerged as the highest bidder in a global competitive bidding process, the company said in a statement on Wednesday. The project cost includes an investment of ₹1,553 crore by Essar Ports and ₹723 crore by DPA, which will provide common-user infrastructure, including dredging of the access channel, berth pockets and turning circles, as well as a common approach road.

Four berths to handle larger vessels

The terminal will have four berths, each measuring 300 metres, for a total berth length of 1,200 metres. It is designed to handle vessels of up to 170,000 deadweight tonnes, with a draft capability of up to 18 metres. The facility is expected to increase cargo-handling capacity at Kandla, ease pressure on existing dry-cargo berths, and improve logistics efficiency by enabling larger vessels, the company said.

Essar Ports looks to expand infrastructure business

The project marks a renewed push by Essar Ports to expand its port infrastructure business in India. The company’s existing portfolio comprises around 60 MTPA of operational capacity across India, Indonesia and the UK. “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,” stated Ashish Rajgarhia, chief executive officer of Essar Ports.

Essar Ports has developed and operated 168 MTPA of port capacity across India and has monetised 148 MTPA through strategic transactions, according to the company. The company will develop the Tuna Tekra terminal in accordance with applicable environmental requirements and the Green Port Policy. Its location on India’s western coast is expected to support cargo movement and trade through the Kandla port region. The company did not disclose the project’s construction timeline or expected commissioning date in the statement.