DPA Invites Bids for ₹733 Crore Kandla Port Expansion

Deendayal Port Authority (DPA), the state-owned operator of Kandla port in Gujarat, has invited bids to privatise berths 15 and 16 for handling multipurpose clean cargo and containers under a public-private partnership (PPP) model for a 30-year concession period. The move forms part of the Centre’s broader asset monetisation programme.

The two berths are currently operated by the port authority after it terminated the earlier concession due to non-performance by the private operator. Recently constructed, the berths are now proposed to be further developed through private investment of approximately ₹733 crore.

The port authority plans to privatise the two berths as a single project, citing growing demand for multipurpose clean cargo and the need to attract higher container traffic. In FY25, Deendayal Port handled 150.15 million tonnes of cargo, including containers, liquid cargo, bulk, breakbulk, and project cargo. Container traffic during the year stood at 4,75,215 twenty-foot equivalent units (TEUs), handled through a terminal operated by JM Baxi Ports & Logistics Ltd.

According to the tender documents, the project aims to create a modern, mechanised cargo-handling facility to enhance operational efficiency, reduce vessel turnaround time, and increase throughput. The two berths will have a combined quay length of 600 metres, allowing them to accommodate two vessels of up to 300 metres each. The facility will be supported by a 43.3-hectare backup area for stack yards, a rail yard, and allied infrastructure.

The berths will have a combined handling capacity of 14.10 million tonnes per annum, including 5.08 million tonnes of multipurpose clean cargo and up to 6 lakh TEUs of container traffic. They are designed to handle multipurpose vessels of up to 75,000 deadweight tonnes (DWT) and container ships of up to 6,000 TEUs, with a required draft of 14.5 metres.

The concession will be awarded to a single operator responsible for handling clean cargo—such as iron and steel products, foodgrains, sugar, rice, salt, silica clay, and project cargo—as well as container traffic. The project will be awarded to the bidder offering the highest royalty per tonne of cargo or per TEU payable to the port authority.

The successful bidder will be required to develop the project in a single phase, including the installation of cargo-handling equipment and development of the backup area and allied facilities, within 18 months of the concession award.

News by Rahul Yelligetti.