The Port of Deendayal is making a second attempt to build a dry cargo berth in Tuna

As part of a major infrastructure upgrade, Deendayal Port (DP) in Gujarat will soon have a multipurpose cargo berth off Tuna Tekra on the Gulf of Kutch, Kandla.

The Port Authority conducted global tenders last week to pre-qualify competent applicants who can then bid according to the RFP (Request for Proposal) document for the project.

Earlier, on October 12, 2022, the Union Cabinet approved a proposal to develop the cargo berth at Tuna-Tekra through a public-private partnership (PPP).

The proposed facility will be used for handling clean, multipurpose cargo including food grains, fertilizers, coal, ores and minerals, steel cargo, etc.

It is proposed that this project will be developed on a Build, Operate and Transfer (BOT) basis by a private developer selected through an international tender process.

The project has a concession period of 30 years and the implementation period of the project is 30 months from the date of the concession award.

The concessionaire is responsible for the design, engineering, financing, procurement, implementation, commissioning, operation, management and maintenance of the project.

The total estimated cost is Rs.2,250.64 crore including Rs.1,719.22 crore to be borne by the Concessionaire and Rs.531.42 crore to be borne by the Deendayal Port Authority.

Justification of the project

Deendayal Port (formerly Kandla Port) is one of the twelve largest ports in India and is located on the west coast of India, in the Gulf of Kutch in Gujarat. The port mainly serves the hinterland of northern India, including the landlocked states of Jammu and Kashmir, Uttar Pradesh, Madhya Pradesh and Gujarat.

Current dry cargo handling capacity (excluding containerized cargo) is 59.96 million tonnes per year (MMTPA). In contrast, a dry cargo of 41.65 MMT (excluding containerized cargo) was handled at dry cargo berths.

However, given the expected recovery in the country’s economic growth, the ever-increasing dry cargo traffic in Kandla and the over-utilized dry cargo handling infrastructure at the Port of Kandla, it is believed that additional facilities will be required.

The gap between forecast traffic and allocated traffic is estimated to be 2.85 MMTPA by 2026 and 27.49 MMTPA by 2030.

In order to accommodate future growth in multi-purpose cargo traffic (other than containers/liquids), the Authority has decided to develop a multi-purpose cargo berth within the port boundaries off Tuna Tekra in the Gulf of Kutch.

The project involves the construction of an offshore jetty for the simultaneous handling of four vessels with attached facilities at a cost of Rs 1,719.22 crore.

The facility must have a multipurpose cargo handling capacity of 18.33 MMTPA. Initially, the project is intended for vessels with a draft of 15 meters and a deadweight tonnage of 1,000,000 tonnes (DWT). Accordingly, the canal is being dredged and maintained by the concession authority to a depth of 15 metres.

However, during the concession period, the concessionaire has the freedom to handle vessels with a draft of up to 18 meters by deepening and widening the berth pockets.

According to an official statement, the development of a multipurpose cargo berth off Tuna Tekra in Kandla will give the company a strategic advantage as it is the closest container terminal serving the vast hinterland of northern part of India.

The project will not only increase Kandla’s business potential, but also boost the economy and create jobs, the statement said.

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