UAE-based DP World will invest $510m in Gujarat terminal
Global port operator DP World has unveiled plans to invest a substantial $510 million in Gujarat, India, with the goal of establishing and overseeing a groundbreaking mega-container terminal. The company has recently concluded a concession agreement with the Deendayal Port Authority, solidifying its commitment to this significant venture.
DP World to Invest $510 Million in New Mega-Container Terminal
The forthcoming greenfield terminal, situated at Tuna-Tekra in Kandla, is projected to have an annual capacity of 2.19 million TEUs (20-foot equivalent units). Through this strategic venture, DP World aims to expand its footprint in India, which is Asia's third-largest economy.
Concession and Partnership Details
The concession for the terminal was granted to Hindustan Infralog Private, a collaboration between DP World and India's government-backed National Investment and Infrastructure Fund. The concession operates on a build-operate-transfer basis for an initial 30-year period, with the potential for an additional 20-year extension.
Enhancing India's Trade Landscape
The new terminal will facilitate enhanced trade opportunities by connecting various regions within India, such as the north, west, and central parts, with global markets. Sultan bin Sulayem, the group chairman and chief executive of DP World, emphasized the company's commitment to driving value for stakeholders and supporting India's trade growth.
Key Terminal Features and Connectivity
Scheduled for completion in 2027, the terminal's construction will involve a public-private partnership model, closely located to the existing Deendayal Port. It will boast a 1,100-meter berth capable of accommodating next-generation vessels with capacities exceeding 18,000 TEUs. The terminal will be well-integrated into a network of roads, railways, and dedicated freight corridors, catering to the burgeoning demand for logistics solutions.
Positive Impact on Port Operations
S.K. Mehta, the chairman of the Deendayal Port Authority, highlighted the terminal's potential to enhance port productivity and cargo-handling capabilities. As one of India's busiest ports, the Deendayal Port Authority is committed to driving trade efficiencies and minimizing congestion.
India's Role in Global Container Trade
With forecasts indicating global container throughput growth to 932 million TEUs by 2025 (up from 858 million TEUs in 2021), India's role in facilitating trade and port operations remains crucial.
DP World's Expansion Strategy
In order to keep up with growing demand in important trade markets, DP World is on track to build almost 3 million TEUs of container-handling capacity by year's end. To reach 93.6 million TEUs, the company's total gross capacity will expand as a result of this development plan.
India's Growing Capacity with DP World
DP World currently operates five container terminals in India, including ones in Mumbai, Mundra, Cochin, and Chennai, with a combined capacity of over 6 million TEUs. The construction of the Tuna-Tekra port would increase India's total capacity by 8.19 million TEUs.