DP World said it signed a concession agreement with the Deendayal Port Authority to develop, operate and maintain a new 2.19 million TEU per annum mega-container terminal at Kandla in Gujarat on India's western coast. 

The Deendayal Port Authority awarded the concession in January to develop the mega-container terminal to Hindustan Infralog Private Limited — a joint venture between DP World and the National Investment and Infrastructure Fund, India's collaborative investment platform anchored by the Government of India.

The concession is on a Build-Operate-Transfer (BOT) basis for a period of 30 years with the option to extend for another 20 years. 

Construction of mega-container terminal

DP World said the project involves the construction of a mega-container terminal at Tuna-Tekra near the existing Deendayal Port at a cost of approximately US$510 million through a Public Private Partnership (PPP). 

It noted that once complete in 2027, the 2.19 million TEU per year terminal will have state-of-the-art equipment and a 1,100 m berth capable of handling next-generation vessels carrying more than 18,000 TEUs.

As part of this concession agreement, the berth can be further extended to 1,375 m. 

DP World said the terminal will connect to the hinterland through the network of roads, highways, railways and Dedicated Freight Corridors, supporting the growing demand for logistics solutions from across Northern, Western and Central India, connecting businesses in the regions to global markets. 

DP World currently operates five container terminals in India — two in Mumbai, one each in Mundra, Cochin and Chennai — with a combined capacity of approximately 6 million TEUs. With the addition of Tuna Tekra, DP World will have a combined capacity of 8.19 million TEUs. 

The company said the project is part of the National Infrastructure Pipeline and will complement initiatives of the Government of India, and the container terminal will be fully compliant with the green port guidelines ensuring sustainability in port operations — contributing towards the long-term sustainability goals set out by the Government of India. 

"... The Project aligns with our Honourable Prime Minister's Amrit Kaal Vision 2047 and would quadruple port handling capacity and develop multimodal logistics infrastructure to promote economic growth," said Sarbananda Sonowal from the Union Minister of Ports, Shipping & Waterways.

He added that once operational, the terminal will play an important role in the Indian government's ambitious vision to make India an "Exports Hub."

S.K. Mehta, chairman of Deendayal Port Authority, said the Tuna-Tekra mega-terminal will be one of the largest container terminals to be set up in the country.

"It will help increase the productivity and cargo handling capacity of the port," he added. "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."

Mehta noted that the Indian Railways have also recently approved the quadrupling of the Samakhiali – Gandhidham line, which will be a big boost for the upcoming container terminal at Tuna Tekra.

The port is also in discussions to implement various other initiatives to enhance the connectivity of Kandla and Tuna Tekra along with the Ministry of Road Transport and Highways and Indian Railways.

Sultan Ahmed bin Sulayem, Group Chairman and CEO of DP World, said: "We are honoured to partner with Deendayal Port Authority in developing this new mega-container terminal at Tuna-Tekra. It 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."

"India represents a significant landscape for opportunity. The signing of this concession agreement marks another milestone in our collective efforts with the National Investment and Infrastructure Fund to leverage DP World's expertise in logistics infrastructure and local knowledge to further strengthen India’s supply chain to support the growth of trade and industry," bin Sulayem added.

The concession agreement was signed between Mehta, chairman of Deendayal Port Authority and Rizwan Soomar, MD & CEO, India Subcontinent, Middle East and North Africa, DP World.