India approves container terminal development at Deendayal Port
The new container terminal will be developed on a build, operate, and transfer (BOT) basis under public-private-partnership (PPP) mode.
Deendayal Port is one of the 12 major ports in India and is located on the west coast in the Gulf of Kutch in Gujarat
The Indian Union Cabinet approved a proposal to develop a container terminal at Tuna-Tekra, Deendayal Port, in Gujarat under the public-private partnership mode.
With an investment of $515m (Rs42.4bn), the concessionaire will be responsible for the construction of the new container terminal at Tuna-Tekra in the Deendayal Port on a build, operate and transfer (BOT) basis under public-private-partnership (PPP) mode.
Approximately $36m (Rs2.96bn) will be used by the Concessioning Authority for the development of common user facilities.
The concessionaire will be responsible for the designing, engineering, financing, procurement, implementation, commissioning, operation, management, and maintenance of the project.
The project consist of construction of an off-shore berthing structure for handling four vessels at a time with allied facilities at the cost of ₹1,719.22 crore and handling capacity of 18.33 million tonnes per annum.
It will initially handle 14m draught vessels of 6,000 TEUs while the Concessioning Authority will dredge and maintain an access channel at 15.50m for the navigation of 14m container vessels around the clock.
The concessionaire will also have the flexibility to handle vessels up to 18m draught by deepening/widening its approach channel, berth pocket, and turning circle during the concession period.
Upon commissioning, Tekra Development is expected to bridge a gap of 1.88 million TEUs from 2025.
Situated on the West Coast of India, Deendayal Port serves the hinterland of the northern part of India, including Jammu and Kashmir, Uttar Pradesh, Madhya Pradesh, and Rajasthan.
In July this year, the Deendayal Port Authority announced plans to invest $745m for the construction of two mega cargo handling terminals.
According to an official statement, on commissioning of the project, it shall cater to the future growth in multipurpose cargo (other than container/liquid) traffic.
Noting that the projected traffic gap by the year 2026 would be 2.85 MMTPA and by 2030 it would be 27.49 MMTPA, it said development of multipurpose cargo berth Off Tune Tekra at Gulf of Kutch at Kandla will give it a strategic advantage as it will be the closest container terminal serving the vast hinterland of northern part of India.
In addition to increasing the business potential of Kandla, the statement said the project will boost the economy and generate employment.
