Essar Ports gets nod to develop Rs 2,276.06 crore multipurpose cargo terminal at Kandla

Essar Ports Limited has received a go ahead from Deendayal Port Authority (DPA) to develop a multipurpose cargo terminal at Tuna Tekra, Kandla, Gujarat. The total estimated project cost stands at Rs 2,276.06 crore, of which around Rs 1,552.57 crore investment will be by Essar Ports and Rs 723.49 crore is by DPA. Essar has bagged this project on a Build, Operate and Transfer (BOT) basis under the Public-Private Partnership (PPP) mode.

The proposed terminal will have an annual cargo-handling capacity of 18.33 million tonnes per annum (MTPA) and comprise four berths, each measuring 300 metres, providing an aggregate berth length of 1,200 metres. The facility is designed to accommodate Cape-size vessels of up to 170,000 deadweight tonnes (DWT), with draft capability of up to 18 metres.

“The Tuna-Tekra project marks a defining moment for Essar Ports as we embark on a new journey to rebuild and expand our ports business,” Ashish Rajgarhia, CEO at Essar Ports said, adding this project will serve as the foundation for Essar's next phase of growth.


The development of additional cargo-handling infrastructure is also expected to ease pressure on existing dry-cargo berths, improve operational efficiency and strengthen multimodal connectivity. The use of larger vessels is expected to support more efficient shipping and improve logistics competitiveness, Essar said.

As part of the project, DPA will provide common-user infrastructure, including dredging of the access channel, berth pockets and turning circles, along with a common approach road. The terminal will be developed and operated in accordance with the Green Port Policy.

Essar's current ports portfolio comprises approximately 60 MTPA operational capacity across Gujarat, Indonesia and the United Kingdom. It has developed and operated 168 MTPA of port capacity across the country of which 148 MTPA has been monetised.