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India seeks bids for Rs 6,000 cr worth expansion of country’s largest Deendayal Port

by Rishika Choudhury

Date & Time: Jul 06, 2022 11:22 AM

Read Time: 2 minute

India has sought global bids for a nearly Rs 6,000 crore expansion project at the Deendayal Port in Kandla, Gujarat, the country's largest port by cargo volume.

Construction of new Mega-Container Terminal and Multi-purpose Cargo Berth

The global bid documents released last week, which seek Public Private Partnership (PPP) for the mega expansion at the Deendayal Port, which includes the construction of a new Mega-Container Terminal and a new Multi-purpose Cargo Berth. The terminal is expected to cost approximately Rs 4,244 crore, while the berth could cost approximately Rs 1,720 crore. This will significantly increase the cargo-handling capacity of Kandla's Deendayal Port, which is competing with the privately owned Mundra Port in Gujarat, India's largest commercial port.
“In view of the expected recovery in the economic growth of the country, steadily growing dry cargo traffic at Kandla and over-utilised dry cargo handling infrastructure at Kandla Port, it is felt that the additional facilities are required," the bid document mentions. Cargo traffic volumes in India had dipped during the Covid-19 pandemic but have seen resurgence since 2021. The bid documents say the two new projects would cater to the future growth at Kandla in multipurpose and container cargo traffic.

New terminal and berth to be operational within 30 to 36 months of contract award

The Deendayal port primarily serves the hinterland of Northern India, including the landlocked states of Jammu and Kashmir (now a union territory), Uttar Pradesh, Madhya Pradesh, and Gujarat. The port's current dry cargo capacity is 59.96 MMTPA (Million Metric Tons Per Annum) and container cargo capacity is 6 Lakh TEUs (Twenty Foot Equivalent Units) per year. The new projects are expected to add 18.33 MMTPA of dry cargo capacity and 2.19 million TEUs of container traffic. The new terminal and berth are expected to be operational within 30 to 36 months of contract award.

New berth can handle vessels of up to 6,000 TEUs of containers

The new berth will be used for handling multipurpose cargo like food grains, fertilizers, coal, ores and minerals and steel cargo etc. It will also be designed for handling vessels of up to 6,000 TEUs of containers. Utility corridors, rail road connectivity, rail loading yard and required backup area will also be developed. The Deendayal port in Kandla is spread over 330 hectares.

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