Dubai-based DP World to invest $510m to develop terminal in India's Gujarat. The greenfield terminal will have the annual capacity of 2.19 million TEUs
29 August 2023, 12:00 AM
30 September 2023, 12:00 AM
Dubai-based ports giant DP World will invest around $510 million to build a new container terminal at the Kandla port in the Indian state of Gujarat, Reuters reported its group chairman as saying on Friday.
DP World will partner with Deendayal Port Authority to build this terminal, ANI added in another report.
With an annual capacity of 2.19 million TEU (20-foot equivalent units), the greenfield terminal at Tuna-Tekra in Kandla will help DP World expand its presence in Asia's third-largest economy.
The Deendayal Port Authority awarded the concession for the terminal earlier this year to Hindustan Infralog Private, a joint venture between DP World and India's government-backed National Investment and Infrastructure Fund.
The concession is on a build-operate-transfer basis for a period of 30 years with the option to extend for another 20 years.
The new terminal will enable DP World to “deliver trade opportunities, by connecting northern, western and central India with global markets, thereby driving value for all our stakeholders”, said Sultan bin Sulayem, group chairman and chief executive of DP World.
The project, expected to be completed in 2027, involves the construction of the terminal near the existing Deendayal Port through a public-private partnership model, DP World said in a statement.
It will have a 1,100-metre berth capable of handling next-generation vessels carrying more than 18,000 TEUs.
As part of the concession agreement, the berth can be further extended to 1,375 metres, DP World said.
The terminal will be linked with a network of roads, railways and dedicated freight corridors, supporting the growing demand for logistics solutions, the statement added.
"The Tuna-Tekra mega-terminal will be one of the largest container terminals to be set up in the country," said S.K. Mehta, chairman of the Deendayal Port Authority.
"It will help increase the productivity and cargo-handling capacity of the port. As one of India’s busiest ports, we are committed to enhancing our capacity to serve the nation and businesses by reducing congestion and driving trade efficiencies."
Global container throughput is forecast to grow to 932 million TEUs by 2025, up from 858 million TEUs in 2021, according to maritime research and consulting services firm Drewry.