New Tender for Multipurpose Cargo Berth at Deendayal Port

23 Sep 2024 CW Team

The Deendayal Port Authority, which oversees operations at Kandla Port in Gujarat, plans to issue a new tender for a multipurpose cargo berth at its Tuna Tekra facility, with private investments amounting to Rs.17.19 billion. This marks the third attempt to secure a private partner after previous tenders failed due to unfavorable terms.

Deputy Chairman Nandeesh Shukla revealed that the new tender will offer significant concessions, including a waiver on minimum guaranteed throughput for the first four to five years, a major change aimed at attracting bidders. This revision is pending approval at the highest level.

Previous attempts to develop the facility under a public-private partnership (PPP) model for a 30-year concession faced resistance from bidders concerned about stringent throughput guarantees. If the operator fails to meet these guarantees, they are liable for royalties based on actual volumes or the minimum guaranteed, whichever is higher. Critics argue that this system disproportionately favors major ports and does not account for market fluctuations in trade.

The planned multipurpose terminal will be capable of handling 18.33 million tonnes of various cargo types, excluding liquid and containerized goods. With existing dry cargo capacity at 59.96 million tonnes, Deendayal Port is seeking to expand to accommodate rising traffic demands projected to exceed current capacity significantly by 2030.

The new berth will facilitate the handling of food grains, fertilizers, coal, and other essential commodities, and is designed to accommodate ships up to 100,000 deadweight tonnes with a draft of 15 meters. Deendayal Port currently operates 16 cargo berths and serves key markets in Northern India, including landlocked states like Jammu and Kashmir, Uttar Pradesh, and Madhya Pradesh.

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