Essar Ports Wins Award for Cargo Terminal at Tuna Tekra, India

Essar Ports Limited has obtained a Letter of Award (LoA) from the Deendayal Port Authority (DPA) to develop a multipurpose cargo terminal at Tuna Tekra, Kandla, in the Indian state of Gujarat. The company emerged as the highest bidder in a global competitive bidding process, and the project will be developed under a Build, Operate and Transfer (BOT) model within a 30-year public-private partnership (PPP) framework.

The estimated project cost is ₹2,276.06 crore, equivalent to US$241 million according to Port Technology. Of that total, Essar Ports will invest more than ₹1,552.57 crore (US$164.4 million), while the DPA will allocate ₹723.49 crore (US$76.6 million). Essar Ports CEO Ashish Rajgarhia noted that the investment is around ₹2,000 crore and that the project will serve as the foundation for the company's next phase of growth.

The planned terminal will have an annual cargo handling capacity of 18.33 million tonnes and will feature four berths of 300 metres each, for a total quay length of 1,200 metres. It is designed to accommodate Capesize vessels of up to 170,000 DWT, with a draft capacity of up to 18 metres. The DPA will be responsible for the common infrastructure, including dredging of the approach channel, basins and turning circles, as well as a shared access road, and the works will be carried out in line with the Green Port Policy.

V. Srinivasan, Operating Partner for Infrastructure at the Essar group, stated that Essar Ports is going through a significant growth phase, focused on expanding its portfolio, strengthening its operational capabilities and generating sustainable long-term value through disciplined investments and operational excellence. For his part, Rajgarhia highlighted that the project picks up a work whose foundation stone was laid by Prime Minister Narendra Modi, in line with the Viksit Bharat 2047 vision.

According to the sources, the new capacity seeks to ease pressure on existing dry cargo berths, improve operational efficiency and strengthen multimodal connectivity, while also enabling the use of larger vessels to enhance shipping efficiency and logistics competitiveness. The award is part of Essar Ports' plans to expand its presence in India and in international markets; the group currently operates around 60 million tonnes per year of port capacity across India, Indonesia and the United Kingdom.