Deendayal Port Authority Awards Essar Ports a 30-Year Contract for Cargo Terminal Development

The Deendayal Port Authority (DPA) has issued a Letter of Award (LoA) to Essar Ports Ltd. for developing a multipurpose cargo terminal at Tuna Tekra in Gujarat, marking a significant step towards expanding the port's cargo-handling capacity. The project will be developed under the public-private partnership (PPP) model on a Build-Operate-Transfer (BOT) basis, with a concession period of 30 years. Essar Ports emerged as the highest bidder in the competitive bidding process, offering a royalty of ₹61 per tonne of cargo handled.

The terminal is expected to involve an investment of approximately ₹1,686.66 crore and will have an annual cargo-handling capacity of around 18.33 million tonnes. The project is aimed at strengthening port infrastructure and improving the handling of bulk and other multipurpose cargo, excluding liquid and containerised cargo.

The Letter of Award was formally handed over by DPA Chairman Sushil Kumar Singh to V. Srinivasan, Operating Partner – Infrastructure Vertical, and Ashish Rajgarhia, Chief Executive Officer of Essar Ports, in the presence of officials from both organisations. The proposed terminal will be located on the eastern side of the mega container terminal being developed at Tuna Tekra by DP World under a separate project. The development is expected to support the expansion of cargo infrastructure in the region and improve the port's ability to accommodate growing trade volumes.

Deendayal Port, situated in Gujarat's Kutch district, is a key maritime gateway for industries and businesses across northern and western India. Additional cargo-handling capacity could help improve logistics efficiency and support the movement of industrial materials and other goods through the port.

The project also highlights the role of private-sector investment in India's port infrastructure development. Under the 30-year concession, Essar Ports will develop and operate the terminal in accordance with the agreement, while the port authority will receive royalty payments linked to cargo handled. The project is expected to strengthen Deendayal Port's multipurpose cargo capabilities and support India's broader maritime trade ambitions. Its long-term contribution will depend on timely implementation, operational efficiency and sustained demand for cargo-handling services.

Disclaimer: This image is taken from Deendayal Port.