Essar Ports wins ₹2,276-crore contract to build cargo terminal at Kandla

Essar Ports Limited received a Letter of Award from the Deendayal Port Authority (DPA) on 21 October 2026 to develop a multipurpose cargo terminal at Tuna Tekra in Kandla, Gujarat. The project has an estimated cost of ₹2,276.06 crore and a planned annual capacity of 18.33 million tonnes, excluding liquid and container cargo.

Project structure and financing

The terminal will be developed under a Build-Operate-Transfer (BOT) model through a Public-Private Partnership (PPP), with a concession period of 30 years. Under a BOT arrangement, a private concessionaire develops and operates an infrastructure asset for a defined period before transferring it to the public authority, in accordance with the concession agreement.

Essar Ports secured the contract as the highest bidder in a global competitive bidding process, offering a royalty of ₹61 per tonne to the DPA. Essar Ports is to invest ₹1,552.57 crore, while the DPA is to contribute ₹723.49 crore towards common-user infrastructure. The authority’s works include dredging access channels, berth pockets and turning circles, as well as developing a common approach road.

Terminal capacity and vessel access

The planned facility will have four berths, each 300 metres long, giving a combined berth length of 1,200 metres. It is designed to accommodate vessels of up to 170,000 deadweight tonnes (DWT) and an 18-metre draft. DWT measures a vessel’s total carrying capacity, while draft is the vertical distance between the waterline and the lowest point of the vessel’s hull.

The terminal is intended for dry and other multipurpose cargo, with liquid and container cargo excluded from its stated 18.33 MTPA capacity. The additional berths are planned to increase cargo-handling capacity in the Kandla port region and ease demand on existing dry-cargo berths.

Port and maritime context

Deendayal Port, formerly known as Kandla Port, is a major port on Gujarat’s western coast near the Gulf of Kutch. The DPA is the port authority responsible for its administration. The Tuna Tekra project forms part of the region’s port infrastructure, where channel and berth dredging provide access for larger vessels. Its four-berth layout is designed for ships with a draft of up to 18 metres.

Important Facts for Exams

• Deendayal Port was formerly known as Kandla Port.
• Deadweight tonnage measures a ship’s carrying capacity, including cargo, fuel and supplies.
• A port berth is a designated place where a vessel can be moored for loading or unloading.
• Dredging removes material from underwater areas to deepen or maintain navigable channels and berths.

The project’s estimated total cost is ₹2,276.06 crore, with contributions planned from Essar Ports and the DPA. The concession period is 30 years under the BOT-based PPP structure.