Essar Ports wins concession for cargo terminal at Kandla port in India
Deendayal Port Authority has issued Essar Ports a letter of award for a 2,276 crore rupee cargo terminal at Kandla under a 30-year concession.
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what happened
According to Moody's, Deendayal Port Authority (DPA) in Kandla has issued Essar Ports Limited a Letter of Award for a multi-purpose cargo terminal at Tuna Tekra. The 30-year concession will be built, operated and transferred under a public-private partnership model. Essar Ports made the highest offer in an international competitive tender, bidding a royalty of 61 rupees per tonne.
The estimated project cost is 2,276.06 crore rupees, of which 1,552.57 crore will come from the concessionaire and 723.49 crore from DPA. The terminal is designed to handle 18.33 million tonnes of cargo a year through four 300-metre berths. It will accommodate Cape-size ships of up to 170,000 DWT. Commercial operations are expected to start by 2031.
why it matters
DPA's existing dry-cargo berths run above 90 per cent occupancy against an ideal level of 70 per cent, so the new terminal should ease that pressure. The port expects larger vessels to lower freight and fuel costs. For markets, this is a long-term signal for India's port infrastructure buildout, with no direct effect on listed prices.
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sources
- Deendayal Port Authority issues LoA to Essar Ports for 30-year cargo terminal project — Moody's, 21 October 2026 at 09:25 UTC
- Deendayal Port Authority awards Rs 2,276 crore Tuna Tekra cargo terminal project to Essar Ports — Moody's, 21 October 2026 at 09:25 UTC
prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.
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