Essar Ports on Wednesday said it has secured a letter of award from <a href="https://www.mid-day.com/news/india-news/article/west-asia-conflict-lpg-vessel-crosses-strait-of-hormuz-docks-at-gujarats-kandla-port-23630926" target="_blank" rel="none noopener">Deendayal Port Authority</a> to develop an 18.33-million-tonne-a-year multipurpose cargo terminal at Tuna Tekra in Gujarat's Kandla port, at an estimated cost of Rs 2,276.06 crore, according to news agency PTI.
The project's estimated cost includes an investment of Rs 1,552.57 crore by Essar Ports and Rs 723.49 crore by the port authority, the company said in a statement.
It will be developed under a 30-year build-operate-transfer concession through the public-private partnership route. Essar Ports emerged as the highest bidder in a global competitive bidding process.
<h2>Cargo handling capacity</h2>
The proposed terminal is a significant step towards strengthening the country&rsquo;s <a href="https://www.mid-day.com/mumbai/mumbai-news/article/maharashtra-govt-approves-shipbuilding-policy-to-develop-maritime-infrastructure-23545252" target="_blank" rel="none noopener">maritime infrastructure</a>, enhancing cargo-handling capacity and facilitating trade growth, it said.
The proposed facility will have an annual cargo-handling capacity of 18.33 million tonnes. It will have four berths, each measuring 300 metres, providing a total berth length of 1,200 metres. It will be designed to accommodate vessels of up to 1,70,000 deadweight tonnes, with a draft capability of up to 18 metres. This will enable the handling of larger ships and potentially improve the economies of scale in cargo transport.
"The terminal will be developed and operated in accordance with applicable environmental requirements and the Green Port Policy," it said.
As part of the project, Deendayal Port Authority will provide common-user infrastructure, including dredging of the access channel, berth pockets and turning circles, along with a common approach road.&nbsp;
<h2>Rebuilding and expanding ports business</h2>
The award comes at a time when the group us planning to expand its ports business.
Essar&rsquo;s current ports portfolio comprises approximately 60 MTPA of operational capacity across Gujarat, Indonesia and the United Kingdom. Through Essar Ports, the group is expanding its <a href="https://www.mid-day.com/business/business-news/article/adani-ports-and-special-economic-zones-q1fy27-consolidated-net-profit-rises-1023-per-cent-to-rs-364950-crore--23642199" target="_blank" rel="none noopener">ports business</a> in India and international markets.
Describing the project as the foundation for the company's next phase of growth, Ashish Rajgarhia, chief executive officer of Essar Ports said, "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."
According to V. Srinivasan, Operating Partner-Infrastructure, Essar Group, "Essar Ports is entering an important phase of its growth journey, focused on expanding its portfolio, strengthening its operational capabilities and creating sustainable long-term value. Our strategy is to build on our established expertise in port infrastructure while pursuing opportunities that support India's growing trade and infrastructure requirements."
(With inputs from PTI)

The investment in the project includes Rs 1,552.57 crore by Essar Ports and Rs 723.49 crore by the port authority

 Essar Ports bags Rs 2,276 crore Tuna Tekra terminal project at Kandla

India's challenge not only to grow fast, but to make growth employment intensive: Subbarao

The project 's estimated cost of Rs 2,276.06 crore includes an investment of Rs 1,552.57 crore by Essar Ports and Rs 723.49 crore by the port authority

Essar Ports secures Rs 2,276 crore Tuna Tekra terminal project at Kandla

Trending Stories

Latest Photos

Latest Videos

Latest Web Stories

Mid-Day Fast

Home / Business / Business News / Article / Essar Ports secures Rs 2,276 crore Tuna Tekra terminal project at Kandla