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July 19, 2022

India’s Deendayal Port Authority to spend $745m for capacity growth

The terminals will be built on a build-operate-transfer (BOT) basis under a public-private partnership (PPP) model.

India-based Deendayal Port Authority has unveiled plans to invest $745m (Rs59.63bn) to build two mega cargo handling terminals.

The port is situated in the Kutch district of the Indian state of Gujarat.

Both terminals will be built on a build-operate-transfer (BOT) basis with a 30-year concession period under a public-private partnership (PPP) model.

There is also the option to renew or extend the concession for a further 20 years.

The development of a container terminal and multi-purpose cargo berth at Tuna-Tekra is aimed at meeting the future needs of the hinterland as well as supporting the downstream industries across Gujarat and allied states.

The container terminal will be built to handle next-generation vessels or deeper draught vessels up to between 6,000 twenty-foot equivalent units (TEUs) and 21,000TEUs with draughts of 14m to 18m, respectively.

Expected to entail an investment of around $530m (Rs42.43bn), the terminal will have an optimal handling capacity of 2.19 million TEU.

The multi-purpose cargo berth will handle vessels up to between 100,000 deadweight tons (DWT) and 210,000DWT with a draught of 15m to 18m, respectively.

It will be suitable for handling multi-purpose cargo, including food grains, fertilisers, coal, ores and minerals, as well as steel cargo.

Projected to cost around $214m (Rs17.19bn), the berth will have an optimal handling capacity of 18.33 million metric tonnes per annum (MMTPA).

Deendayal Port Authority chairperson S K Mehta said: “At Deendayal Port, we are focusing on six major strategic areas, which include cargo and productivity improvement; landlord port development; port-led industrialisation; coastal shipping and Ro-Ro; Ro-pax expansion; improvement in ease of doing business and cost of doing business; and green, sustainable and safe port development.”

Last March, Adani Ports and Special Economic Zone (APSEZ) won a dredging contract, valued at nearly $42.47m (Rs3.1bn), from Deendayal Port Trust.

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