Essar Ports secures award for new cargo terminal in India
Essar Ports Limited has received a Letter of Award (LOA) from Deendayal Port Authority (DPA) to develop a new multipurpose cargo terminal at Tuna Tekra, Kandla, in the Indian state of Gujarat.
The project has an estimated total cost of ₹2,276.06 crore, comprising an investment exceeding ₹1,552.57 crore from Essar Ports and ₹723.49 crore from DPA. Essar Ports secured the award following an international competitive bidding process.
The terminal is planned under a 30-year Build, Operate and Transfer (BOT) concession through a public-private partnership (PPP) arrangement.
New terminal to accommodate Capesize vessels
The proposed facility will have an annual cargo-handling capacity of 18.33 million tonnes and feature four berths, each measuring 300 metres, providing a combined berth length of 1,200 metres.
The terminal will be designed to accommodate Capesize vessels of up to 170,000 deadweight tonnes, with a draft capability of up to 18 metres. The additional infrastructure is expected to ease pressure on existing dry-cargo berths and improve cargo-handling efficiency at Kandla.
Under the project arrangements, DPA will provide common-user infrastructure, including dredging of the access channel, berth pockets and turning circles, alongside a common approach road.
The development is also expected to strengthen multimodal connectivity and support more efficient cargo movements between the port and its hinterland.
Essar Ports expands infrastructure portfolio
The Tuna Tekra project forms part of Essar Ports’ strategy to expand its port infrastructure activities in India and international markets.
Ashish Rajgarhia, Chief Executive Officer of Essar Ports, described the development as an important step in the company’s efforts to rebuild and expand its ports business.
Essar’s existing ports portfolio comprises approximately 60 million tonnes of annual operational capacity across India, Indonesia and the United Kingdom.
The new terminal is intended to support growing trade volumes and accommodate larger vessels, potentially improving shipping efficiency and logistics competitiveness.
According to DPA’s project announcement, commercial operations are expected to begin by 2031.
The facility is planned to be developed and operated in accordance with applicable environmental requirements and India’s Green Port Policy.
