DP World signs concession pact for tuna-tekra terminal

11 Aug 2023 CW Team

Deendayal Port Authority, the operator of Kandla port in Gujarat, is set to finalise a concession agreement with global port giant DP World Ltd to establish a state-of-the-art container terminal at Tuna Tekra. The eagerly anticipated deal had faced delays due to a legal dispute. The planned terminal, with an annual capacity of 2.19 million TEUs, will require an investment of Rs 42.43 billion. Notably, Deendayal Port Authority will contribute Rs 2.96 billion for vital infrastructure development.

The concession agreement holds significance as a pivotal project under the National Infrastructure Pipeline. Union Minister Sarbananda Sonowal will oversee the signing ceremony. However, the project encountered obstacles, including a public interest litigation contesting environmental clearances. Although the Gujarat High Court didn't stay the concession agreement, DP World expressed reservations due to the PIL. This partnership is a strategic move for DP World, following its triumph over Adani Ports in winning the 30-year contract. DP World's commitment to the project is underscored by its highest-ever royalty bid of Rs 6,500 per TEU, reflecting the company's confidence in its potential.

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