India’s Largest Port Project: $2.7bn Tuna Tekra Terminal Breaks Ground
Essar Ports wins $2.7bn contract to build 18.33m-tonne multipurpose terminal at Kandla’s Tuna Tekra
The Deendayal Port Authority (DPA) has awarded a ₹2,276 crore contract to Essar Ports for the development of a multipurpose cargo terminal at Tuna Tekra in Kandla, Gujarat. The project, secured through a global competitive bidding process, will be executed under a Build, Operate, and Transfer (BOT) model as part of a Public-Private Partnership (PPP).
The terminal will have an annual handling capacity of 18.33 million tonnes and feature four berths, each measuring 300 metres, providing a combined length of 1,200 metres. Designed to accommodate Cape-size vessels of up to 170,000 deadweight tonnes (DWT), the facility will support a draft of up to 18 metres, enabling the handling of larger ships and improving logistics efficiency.
Project Scope and Strategic Importance
The DPA will contribute to the project by developing common-user infrastructure, including dredging the access channel, berth pockets, and turning circles, as well as constructing a common approach road. The terminal will adhere to environmental regulations and align with India’s Green Port Policy.
The total project cost is estimated at ₹2,276.06 crore, with Essar Ports investing ₹1,552.57 crore and the DPA contributing ₹723.49 crore. The development is expected to ease congestion at existing dry-cargo berths in Kandla, one of India’s busiest ports, while enhancing operational efficiency and reducing vessel turnaround times.
Ashish Rajgarhia, CEO of Essar Ports, described the project as a milestone for the company, stating that it would serve as the foundation for its next phase of growth. He highlighted the project’s alignment with Prime Minister Narendra Modi’s vision of Viksit Bharat 2047, which aims to transform India into a developed nation by its centenary of independence.
Investment and Industry Impact
V. Srinivasan, Operating Partner-Infrastructure at Essar Group, emphasised the company’s commitment to expanding its port infrastructure while supporting India’s trade and logistics requirements. He noted that the project reflects Essar Ports’ strategy of disciplined investments and operational excellence to create long-term value for stakeholders.
The terminal’s development reinforces Essar Ports’ position in India’s maritime sector, adding to its existing portfolio of approximately 60 million tonnes per annum (MTPA) of operational capacity across Gujarat, Indonesia, and the United Kingdom.
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