Global ports operator DP World will invest $510 million to develop and operate a new mega-container terminal in the Indian state of Gujarat as part of the concession agreement signed with the Deendayal Port Authority earlier this year, it said on Friday.
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.
“India represents a significant landscape for opportunity. The signing of this concession agreement … [will] further strengthen India’s supply chain to support the growth of trade and industry,” he said.
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.
Earlier this month, DP World said it plans to add about 3 million TEUs of container-handling capacity by the end of the year to help meet growing demand in key trade markets.
The company, which currently manages approximately 9 per cent of the world’s handling capacity and is among the top five global ports operators, said the addition will take its total gross capacity to 93.6 million TEUs.
The capacity additions to be completed this year in key markets include Caucedo (Dominican Republic) with an additional 1.2 million TEUs, Yarimca (Turkey) with an additional 579,000 TEUs, Sokhna (Egypt) with an additional 500,000 TEUs and Jeddah (Saudi Arabia) with an added 200,000 TEUs, DP World said.
Other markets include Callao in Peru and Saigon in Vietnam as well as terminals in Luanda, Dakar, Berbera and Vancouver.
DP World currently operates five container terminals in India, including two in Mumbai and one each in Mundra, Cochin and Chennai with a combined capacity of approximately 6 million TEUs.
With the addition of Tuna-Tekra, the ports operator will have a combined capacity of 8.19 million TEUs in the country.