Tatsat Chronicle Magazine

Port expansion projects worth ₹6,400 crore cleared by the cabinet

October 13, 2022
Photo: Wiki Commons (for representative purpose only)

The Cabinet Committee on Economic Affairs chaired by Prime Minister Shri Narendra Modi approved the development of container terminal at Tuna-Tekra, Deendayal Port in Gujarat on Build, Operate and Transfer (BOT) basis under Public-Private-Partnership (PPP) mode. The estimated cost of ₹4,243.64 crore will be on the part of the concessionaire and an estimated cost of common user facilities of ₹296.20 crore will be on the part of the concession authority toward development of common user facilities. The project expected to cater to the future growth in container cargo traffic. From 2025, a net gap of 1.88 million TEUs will be available which can be catered by the modern container terminal at Tuna-Tekra. The strategic location of the facility will help service the northern part of India.

According to the details available, the proposed project is to be developed on BOT basis by a private developer (Build, Operate and Transfer (BOT) operator) to be selected through an international competitive bidding process.  The concessionaire will be responsible for the design, engineering, financing, procurement, implementation commissioning, operation, management and maintenance of the project under the Concession Agreement (CA) to be executed by the concessionaire and the concession authority, which is Deendayal Port Authority for a period of thirty years for handling designated cargos.  The port authority will be be responsible for common supporting infrastructure such as common access channel and common road.
The project consists of construction of an off-shore berthing structure for handling three vessels at a time with allied facilities at cost of ₹4,243.64 crore and handling capacity of 2.19 million TEUs per annum. Initially, the project will cater to 14-metre draught vessels of 6,000 TEUs and accordingly, common access channel will be dredged and maintained by the port authority at 15.50 metre to navigate container vessels. During the concession period, the concessionaire will have liberty to handle vessels up to 18m draught by deepening and widening its approach channel, berth pocket and turning circle.  The draft of access channel may be increased based on mutual agreement between the two parties on a cost sharing basis.

At the same meeting the cabinet also approved the development of Multipurpose Cargo (other than Container/Liquid) Berth Off Tuna-Tekra on the Gulf of Kutch at Kandla on Build, Operate and Transfer (BOT) basis under Public Private Partnership (PPP) mode.

The total estimated cost of the project is ₹2,250.64 crore. The cost of ₹1,719.22 crore will be borne by the concessionaire for the development of the multipurpose cargo berth, including dredging work alongside the berth, turning circles and approach channel and ₹531.42 Crore will be borne by the port authority towards capital dredging of common user access channel and construction of common user road.

This project is expected to cater to the increase in multipurpose cargo in the near future.  The projected traffic gap by the year 2026 would be 2.85 million tonnes per annum (MMTPA) and by 2030 it would be 27.49 MMTPA.

The Project consist of construction of an off-shore berthing structure for handling four vessels at a time with allied facilities at the cost of ₹1,719.22 crore and handling capacity of 18.33 MMTPA.

Vivek Mukherji

He is the Executive Editor of Tatsat Chronicle and has more than 22 years of experience during which he held several senior editorial positions in print publications, news television and digital media platforms. The former Managing Editor of Sports Illustrated has launched two editions of one India’s largest circulating English newspapers and five magazines. He has written and reported on wide-ranging subjects from crime to politics, from technology to sports, from bureaucracy and governance to environmental issues.