SIMIC

SHIPPING experts in India, closely monitoring Dubai-based DP World's engagement, expect the Dubai-based company to get further involved in India's expanding port infrastructure.

This follows DP World's recent concession agreement with the Deendayal Port Authority (DPA) - also known as Kandla Port - to invest US$510 million to build and develop a new 2.19 million TEU per annum mega-container terminal at Kandla in India's western state Gujarat, according to AJOT.



The mega-container terminal project, which will have a public-private partnership, will be on a build-operate-transfer (BOT) basis for a period of 30 years with the option to extend it by another 20 years and will be at Tuna Tekra near the Deendayal Port, Kandla.



Port experts say that on its completion in 2027, the terminal will be supported by state-of-the-art equipment and a 1,100-metre berth capable of handling next-generation ships with a capacity exceeding 18,000 TEU.



The new mega-container terminal will be linked to the hinterland through a network of roads, highways, railways, and dedicated freight corridors, supporting the growing demand for logistics solutions from across Northern, Western, and Central India, connecting businesses in these regions with global markets.



DP World is deeply involved in the Indian subcontinent's port development: it already operates five container terminals - two in Mumbai, one each in Mundra, Cochin, and Chennai, with a combined capacity of some 6 million TEU; this combined capacity would further increase to 8.19 million TEU on Tuna Tekra's completion. It is also developing three state-of-the-art economic zones in Mumbai, Cochin, and Chennai.



Sarbananda Sonowal, India's Minister for Ports, Shipping & Waterways, recently hailed the signing of the DP World's concession agreement as a "momentous event", marking "another significant breakthrough in building the best-in-class infrastructure in India under the public-private partnership".



Indian shipping experts say that the terminal will boost India's container traffic growth and through its external connectivity can also greatly enhance trade with various landlocked regions, reducing logistics costs and increasing the efficacy of supply chains.



According to Indian sources, the project will complement the Indian Government's initiatives, including the Gati Shakti Master Plan and National Logistics Policy on developing multimodal logistics infrastructure and boosting economic growth.



Indian sources further argue that DP World's investments in India's ports and terminals are aligned with New Delhi's Vision 2047 aimed at quadrupling the country's port-handling capacity.