Essar Ports Wins ₹2,276-Crore Tuna Tekra Terminal Project, Secures 30-Year Concession From Deendayal Port Authority

Ahmedabad, Oct 21: Deendayal Port Authority (DPA) has awarded Essar Ports Ltd. a 30-year concession to develop an 18.33-million-tonne-a-year multipurpose cargo terminal at Tuna Tekra in Gujarat, in a Rs 2,276-crore project aimed at easing congestion and expanding capacity at one of India's key western coast gateways.

Essar Ports emerged as the highest bidder in a global competitive bidding process, offering a royalty of Rs 61 per tonne to DPA, the port authority said on Wednesday. The project will be developed under the build-operate-transfer (BOT) model through a public-private partnership (PPP).

The estimated project cost of Rs 2,276.06 crore comprises Rs 1,552.57 crore to be invested by Essar Ports and Rs 723.49 crore by DPA. Commercial operations are expected to begin by 2031.

The award comes as DPA seeks to expand cargo-handling infrastructure to accommodate growing domestic and export-import trade. The port authority said its existing dry-cargo berths are operating at more than 90 per cent berth occupancy, above the indicated optimal level of 70 per cent, highlighting the need for additional capacity.

The proposed terminal will be located east of the mega container terminal being developed by DP World at Tuna Tekra. It will comprise four berths, each 300 metres long, providing a combined berth length of 1,200 metres. The facility is designed to handle Cape-size vessels of up to 170,000 deadweight tonnes, with a draft capability of up to 18 metres.

DPA will provide common-user infrastructure, including dredging of the access channel, berth pockets and turning circles, as well as a common approach road. Essar Ports will develop and operate the terminal in accordance with applicable environmental requirements and the Green Port Policy.

The addition of deep-draft berths is expected to improve cargo-handling efficiency and allow larger vessels to call at the port, potentially lowering shipping costs and strengthening the competitiveness of Indian trade. Improved road and rail connectivity is also expected to support cargo evacuation to industrial and consumption centres across Gujarat and the wider hinterland.

DPA Chairman Sushil Kumar Singh formally handed over the Letter of Award to V. Srinivasan, Essar Group's operating partner for infrastructure, and Ashish Rajgarhia, chief executive officer of Essar Ports, on Wednesday.

For Essar Ports, the award marks a step in rebuilding and expanding its port infrastructure business. The company’s existing portfolio has about 60 million tonnes a year of operational capacity across India, Indonesia and the United Kingdom.

The project also adds to private-sector investment in Indian port infrastructure, as the government seeks to improve logistics efficiency and expand maritime capacity to support trade growth. For DPA, the concession is expected to generate royalty revenue while increasing the port's ability to handle dry bulk and other multipurpose cargo.

The project's eventual contribution will depend on timely construction, the availability of supporting infrastructure and cargo growth. With operations not expected before 2031, the new capacity will form part of DPA's longer-term response to rising demand for port services on India’s western coast.

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