Mumbai, Oct 21 — Essar Ports Limited has received the Letter of Award (LOA) from Deendayal Port Authority (DPA) for the development of a multipurpose cargo terminal at Tuna Tekra, Kandla, Gujarat, on a Build, Operate and Transfer (BOT) basis under the Public-Private Partnership (PPP) mode.
Essar Ports emerged as the highest bidder through a global competitive bidding process.
With a total estimated project cost of Rs 2,276.06 crore, including an investment in excess of Rs 1,552.57 crore by Essar Ports and Rs 723.49 crore by DPA, the project marks a significant step in Essar Ports' strategy to expand its portfolio and strengthen its presence in India's port infrastructure sector.
Strategically located on India's western coast, the proposed terminal is a significant step towards strengthening the country's maritime infrastructure, enhancing cargo-handling capacity and facilitating trade growth.
Essar Group is a global conglomerate with over five decades of entrepreneurial experience in conceptualising, investing, building, and operating world-class assets across the energy, infrastructure, metals & mining, technology & retail sectors. Essar's current ports portfolio comprises approximately 60 MTPA of operational capacity across Gujarat, Indonesia and the United Kingdom. Through Essar Ports, the Group is expanding its port business in India and international markets.
Commenting on the development, Ashish Rajgarhia, CEO, Essar Ports, said, “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. With an investment of approximately Rs 2,000 crore, this project will serve as the foundation for our next phase of growth. We are particularly proud to take forward a project whose foundation stone was laid by Honourable Prime Minister Shri Narendra Modi ji. Through this investment, we reaffirm our commitment to building world-class maritime infrastructure and contributing to the Prime Minister’s vision of Viksit Bharat 2047.”
V. Srinivasan, Operating Partner-Infrastructure, Essar Group, said: “Essar Ports is entering an important phase of its growth journey, focused on expanding its portfolio, strengthening its operational capabilities and creating sustainable long-term value. Our strategy is to build on our established expertise in port infrastructure while pursuing opportunities that support India's growing trade and infrastructure requirements. We remain committed to disciplined investments, operational excellence and building a stronger, future-ready business that delivers lasting value for all stakeholders, including our shareholders.”
The proposed terminal will have an annual cargo-handling capacity of 18.33 million tonnes and comprise four berths, each measuring 300 metres, providing an aggregate berth length of 1,200 metres. The facility is designed to accommodate Cape-size vessels of up to 170,000 deadweight tonnes (DWT), with draft capability of up to 18 metres.
As part of the project, DPA will provide common-user infrastructure, including dredging of the access channel, berth pockets and turning circles, along with a common approach road. The terminal will be developed and operated in accordance with applicable environmental requirements and the Green Port Policy.
The development of additional cargo-handling infrastructure is also expected to ease pressure on existing dry-cargo berths, improve operational efficiency and strengthen multimodal connectivity. The use of larger vessels is expected to support more efficient shipping and improve logistics competitiveness.