Expansion of Deendayal Port to improve ports cargo handling capacity

For a massive expansion project for the nation’s largest port by volume of cargo handled, the Deendayal Port in Kandla, Gujarat, India has sought global bids worth nearly Rs 6,000 crore. The bid documents that were floated last week seek Public Private Partnership (PPP) for the mega expansion that involves setting up a new Mega-Container Terminal and a new Multi-purpose Cargo Berth at the Deendayal Port.

The estimated cost of the terminal is expected to be around Rs 4,244 crore, while the berth is likely to cost Rs 1,720 crore. This expansion project is expected to significantly increase the cargo-handling capacity of the Deendayal Port in Kandla, amidst competition from the privately controlled Mundra Port in Gujarat, which is India’s largest commercial port.

“Given the expected recovery in the economic growth of the country, steadily growing dry cargo traffic at Kandla and over-utilized dry cargo handling infrastructure at Kandla Port, it is felt that the additional facilities are required,” the bid document mentions.

India’s cargo traffic volumes, which during COVID witnessed a major dip are now seeing a resurgence since 2021. According to the bid documents, the two new projects would cater to the future growth at Kandla in multipurpose and container cargo traffic.

Primarily servicing the Northern India hinterland, including the land-locked states of Jammu & Kashmir (now a UT), Uttar Pradesh, Madhya Pradesh, and Gujarat, The Deendayal port has a presently handles dry cargo capacity of 59.96 MMTPA (Million Metric Tons Per Annum) and container cargo of 6 Lakh TEUs (Twenty Foot Equivalent Units) per annum. With the new projects, the port is likely to see an added capacity of 18.33 MMTPA in dry cargo and 2.19 million TEUs of container traffic. Both the new terminal and berth are targeted to come up within 30 to 36 months of the award of the contract.

The new berth will be used for handling multipurpose cargo like food grains, fertilizers, coal, ores and minerals, steel cargo, etc. It will also be designed for handling vessels of up to 6,000 TEUs of containers. Utility corridors, railroad connectivity, rail loading yard, and the required backup area will also be developed.

The Deendayal port in Kandla is spread over 330 hectares.

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