Essar Ports Limited has received a Letter of Award (LoA) from Deendayal Port Authority (DPA) to develop a multipurpose cargo terminal at Tuna Tekra in Kandla, Gujarat. The project will be implemented under a 30-year Build, Operate and Transfer (BOT) concession through the Public-Private Partnership (PPP) model. Essar Ports emerged as the highest bidder following a global competitive bidding process. The project has an estimated cost of ₹2,276.06 crore (US$240 million).

The project involves the development of a terminal with an annual cargo-handling capacity of 18.33 million tonnes. The facility will comprise four berths, each measuring 300 metres, providing a combined berth length of 1,200 metres. It is designed to accommodate Cape-size vessels of up to 170,000 deadweight tonnes, with a draft capacity of up to 18 metres. The terminal is expected to strengthen cargo-handling capacity and support growing domestic and international trade.

The total investment will comprise ₹1,552.57 crore from Essar Ports and ₹723.49 crore from Deendayal Port Authority. DPA will also provide common-user infrastructure, including dredging of the access channel, berth pockets and turning circles, as well as a common approach road. The project is expected to ease pressure on existing dry-cargo berths, improve port operational efficiency and strengthen multimodal connectivity.

The terminal forms part of efforts to expand maritime infrastructure at Kandla and improve logistics efficiency through the handling of larger vessels. The development is expected to support India’s growing export-import trade and enhance the competitiveness of port operations. The project will be developed in accordance with applicable environmental requirements and the Green Port Policy. Commercial operations are expected to begin by 2031.