Mumbai, October 22, 2026: Essar Ports Limited has secured a Letter of Award (LoA) from the Deendayal Port Authority (DPA) for a ₹2,276.06 crore multipurpose cargo terminal project at Tuna Tekra, Kandla, in Gujarat. The proposed facility will have four berths and an annual cargo-handling capacity of 18.33 million tonnes, with commercial operations expected to begin by 2031.
The company announced the award on October 21 after emerging as the highest bidder in a global competitive bidding process. According to reports citing DPA, Essar Ports offered a royalty of ₹61 per tonne payable to the port authority.
The project will be developed under a 30-year Build, Operate and Transfer (BOT) concession through the Public-Private Partnership (PPP) model.
Of the total estimated project cost of ₹2,276.06 crore, Essar Ports will invest more than ₹1,552.57 crore, while DPA will contribute ₹723.49 crore towards supporting infrastructure.
The proposed terminal will comprise four berths, each measuring 300 metres, with a combined berth length of 1,200 metres.
It is designed to accommodate Cape-size cargo vessels of up to 170,000 deadweight tonnes (DWT), with a draft capability of up to 18 metres.
These specifications will allow the terminal to handle larger cargo vessels once operational, potentially improving cargo-handling efficiency and supporting higher trade volumes through Kandla.
DPA will provide common-user infrastructure, including dredging of the access channel, berth pockets and turning circles, as well as a common approach road.
The terminal will be developed on the eastern side of the mega container terminal being developed separately by DP World at Tuna Tekra under a PPP arrangement.
According to DPA, the new facility is expected to reduce pressure on existing dry-cargo berths at Kandla, which are reportedly operating at more than 90% occupancy, compared with an indicated ideal level of 70%.
The additional capacity could help ease congestion, accommodate larger vessels and improve cargo movement. However, these benefits will depend on the project’s construction, commissioning and subsequent operations.
The terminal will be developed and operated in accordance with applicable environmental requirements and the Green Port Policy, with sustainable practices expected to form part of its planning and operations.
Ashish Rajgarhia, Chief Executive Officer of Essar Ports, described the Tuna Tekra project as an important step in the company’s plans to rebuild and expand its ports business.
V. Srinivasan, Operating Partner – Infrastructure at Essar Group, also highlighted the company’s focus on expanding its infrastructure portfolio and strengthening operational capabilities.
According to Essar Ports, its existing portfolio comprises approximately 60 million tonnes per annum of operational capacity across Gujarat, Indonesia and the United Kingdom.
The planned 18.33 million tonnes of annual capacity at Tuna Tekra will add to the company’s portfolio once the terminal is developed and commissioned.
Separately, reports citing DPA indicate that commercial operations are expected to begin by 2031. However, Essar Ports’ October 21 announcement does not specify a firm commissioning date.
The Letter of Award confirms Essar Ports’ selection for the project but does not establish that construction has commenced or that the terminal is operational.
Once completed, the facility is expected to expand Kandla’s multipurpose cargo-handling infrastructure and support domestic and international trade through Gujarat’s western coast.
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