DP World and India’s Deendayal Port Authority (DPA) signed a concession agreement for a new mega container terminal at Kandla, Gujarat yesterday, according to a press release. The agreement — valued at USD 510 mn — involves the operation, development, and maintenance of the new terminal through a 30-year public-private partnership (PPP).

The details: The terminal will be completed by 2027, with an annual capacity of 2.2 mn TEUs with an ability to accommodate vessels carrying more than 18k TEUs. Trade demand spanning from northern, western, and central India will be linked to international markets. It will also adhere to green port guidelines, ensuring sustainability in port operations. The 30-year agreement is under a build-operate-transfer framework and can be extended by up to 20 years.

The container terminal is poised to boost operation efficiency, lowering congestion and turnaround time at Kandla creek, as well as improving the handling of larger vessels, the press release adds. The project comes as the Indian government looks to quadruple its port handling capacity and enhance logistics infrastructure.

In context: DP World has been looking to strengthen its position on India’s western coast as its existing terminal contracts near expiry. DP World’s two terminal contracts at Jawaharlal Nehru Port, the second-largest container terminal in India, are set to reach the end of their 30-year terms in 2028. DPA granted the concession to Hindustan Infralog Private Limited — a joint venture between DP World and India’s National Investment and Infrastructure Fund.Discussions to finalize the connection agreement for the terminal have been ongoing, but saw delays on the back of a court case challenging the environmental clearances.

What they said: “This project will create significant value for end-users and help the government achieve its goal of reducing logistics costs for trade” CEO and Managing Director of National Investment and Infrastructure Fund Rajiv Dhar said.

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