India approves new $720 million terminals at Kandla Port

India approves $720 million terminals development at Kandla Port

The government of India has approved the development of two new container terminals at Tuna-Tekra in Deendayal Port (Kandla Port) at an estimated cost of Rs 5,963 crore ($720 million).

The government is planning a container terminal and a multipurpose cargo facility, at an estimated cost of Rs 4,539.84 crore ($547 million) and Rs 2,250.64 crore ($271 million) respectively.

The project will be built in public private partnership (PPP) model.

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The port authority will invest Rs 296.20 crore ($35.6 million) and Rs 531.42 crore ($64 million) towards dredging works and road infrastructure.

“On commissioning of the project, it shall cater to the future growth in container cargo traffic,” the Cabinet said in a statement.

“From 2025, a net gap of 1.88 million TEU shall be available which can be catered by a state-of-the-art container terminal at Tuna-Tekra, which will give it a strategic advantage as it will be the closest container terminal serving the vast hinterland of northern part of India.

“Besides increasing the business potential of Kandla, the project will boost the economy and generate employment.”

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According to the Cabinet’s statement, both terminals are greenfield initiatives featuring the most modern and sustainable operation leading to optimum operational efficiency.

The proposed container terminal will be able to accommodate deeper draught vessels with capacities ranging from 6,000 TEU to 21,000 with a draught of 14 metres to 18 metres.

Overall annual capacity is estimated at 2.19 million TEU.

The proposed multipurpose cargo berth aims to accommodate vessels of 100,000 DWT to 210,000 with a draught of 15 metres to 18 metres.

The facility will be utilised to handle multipurpose cargo, including food grains, fertilisers, coal, ores and minerals, and steel cargo, among others.

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