Essar Ports Limited has secured the Letter of Award (LOA) from Deendayal Port Authority (DPA) for the development of a multipurpose cargo terminal at Tuna Tekra, Kandla, Gujarat, on a Build, Operate and Transfer (BOT) basis under the Public-Private Partnership (PPP) mode. The total estimated project cost stands at ₹2,276.06 crore, making it one of the more significant port infrastructure investments on India's western coastline in recent years.

How the Deal Was Won

Essar Ports emerged as the highest bidder through a global competitive bidding process, securing the contract ahead of other contenders. Of the total outlay, Essar Ports will invest in excess of ₹1,552.57 crore, while DPA will contribute ₹723.49 crore, including common-user infrastructure such as dredging of the access channel, berth pockets, turning circles, and a common approach road.

What the Terminal Will Look Like

The proposed facility at Tuna Tekra is designed to handle an annual cargo throughput of 18.33 million tonnes. It will comprise four berths, each measuring 300 metres, delivering an aggregate berth length of 1,200 metres. Notably, the terminal is built to accommodate Cape-size vessels of up to 170,000 deadweight tonnes (DWT), with a draft capability of up to 18 metres — enabling some of the world's largest bulk carriers to dock at Kandla.

The facility will be developed in compliance with applicable environmental norms and the Green Port Policy, according to the company.

What the Companies Said

Ashish Rajgarhia, CEO of Essar Ports, described the award as 'a defining moment' for the company. '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. With an investment of approximately ₹2,000 crore, this project will serve as the foundation for our next phase of growth,' he said. Rajgarhia also noted that the project's foundation stone was laid by Prime Minister Narendra Modi, and reaffirmed the company's commitment to the Viksit Bharat 2047 vision.

V. Srinivasan, Operating Partner – Infrastructure at Essar Group, added that the company is entering 'an important phase of its growth journey', focused on expanding its portfolio and delivering long-term value. 'We remain committed to disciplined investments, operational excellence and building a stronger, future-ready business,' he said.

Why This Matters for India's Port Sector

The Kandla port complex — officially the Deendayal Port — is among India's busiest, handling a substantial share of the country's dry-bulk imports. The addition of a high-capacity, Cape-size-capable terminal is expected to ease congestion on existing dry-cargo berths and improve multimodal logistics connectivity in Gujarat. The use of larger vessels is also projected to lower per-unit freight costs, strengthening India's logistics competitiveness at a time when supply chain efficiency is a stated national priority.

Essar Group's current ports portfolio spans approximately 60 million tonnes per annum (MTPA) of operational capacity across Gujarat, Indonesia, and the United Kingdom. This project extends that footprint and signals the group's return to large-scale port development in India after a period of restructuring. The terminal's development timeline and operational start date have not yet been disclosed.