Essar Ports has received a Letter of Award (LoA) from India’s Deendayal Port Authority to develop a new multipurpose cargo terminal at Tuna Tekra, Kandla.
The project represents an investment of approximately INR 22.76 billion. Once completed, the terminal will have an annual cargo-handling capacity of 18.33 million tonnes.
The development will take place under a public-private partnership (PPP) model, with Essar Ports and the port authority contributing to the investment.
The planned terminal will feature four berths with a combined length of 1,200 metres. It will be able to accommodate vessels of up to 170,000 deadweight tonnes (DWT).
Essar Ports is expected to invest approximately INR 15.53 billion in the project. The Deendayal Port Authority will contribute around INR 7.23 billion.
The terminal will be developed under a Build–Operate–Transfer (BOT) model. The concession agreement will cover a period of 30 years.
The new facilities will expand cargo-handling capacity at Kandla, one of India’s major ports on the country’s western coast.
The project will also support the port’s ability to handle larger vessels and a wider range of cargo operations.
The award marks another step in Essar Ports’ expansion of its maritime infrastructure activities.
The planned terminal will add new capacity for multipurpose cargo handling. It will also strengthen the port infrastructure available to businesses moving goods through the region.
The investment forms part of efforts to improve port facilities and support maritime trade in India.
However, the Letter of Award represents a project development milestone rather than the start of commercial operations.
The announcement does not provide a confirmed construction timetable or opening date for the new terminal.
