In a major infrastructure upgrade, the Deendayal Port (DP) in Gujarat, will soon have a multipurpose cargo berth off Tuna Tekra at Gulf of Kutch, Kandla.
The Port authority, last week, floated global tenders to pre-qualify competent applicants who can subsequently bid for the project as per Request for Proposal (RFP) Document.
Earlier on 12 October 2022, the Union Cabinet had approved a proposal to develop the cargo berth at Tuna-Tekra under the public-private partnership (PPP) mode.
The proposed facility will be used for handling multipurpose clean cargo, including food grains, fertilisers, coal, ores and minerals, steel cargo etc.
This project is proposed to be developed on Build, Operate and Transfer (BOT) basis by a private developer, to be selected through an international competitive bidding process.
The project will have a concession period of 30 years and the implementation period for the project is reckoned as 30 months from the date of award of concession.
The Concessionaire will be responsible for the design, engineering, financing, procurement, implementation, commissioning, operation, management and maintenance of the project.
The total estimated cost of Rs 2,250.64 crore which includes Rs 1,719.22 crore to be borne by the Concessionaire and Rs 531.42 crore to be borne by the Concessioning Authority (Deendayal Port Authority).
Rationale Of The Project
Deendayal Port (erstwhile Kandla Port) is one of the twelve major ports in India and is located on the west coast of India, in the Gulf of Kutch in Gujarat. The port primarily services the northern India hinterland, including the land locked states of Jammu and Kashmir, Uttar Pradesh, Madhya Pradesh and Gujarat.
The present capacity of handling dry cargo (excluding container cargo) is 59.96 million metric ton per annum (MMTPA). As against this, dry cargo berths have handled a dry cargo of 41.65 MMT (excluding containerised cargo).
However, in view of the expected recovery in the economic growth of the country, steadily growing dry cargo traffic at Kandla and over-utilised dry cargo handling infrastructure at Kandla Port, it is felt that the additional facilities are required.
The gap between the projected traffic and allocated traffic by the year 2026 has been estimated at 2.85 MMTPA and by 2030 at 27.49 MMTPA.
As such, in order to cater to the future growth in multipurpose cargo (other than container/liquid) traffic, the authority has decided to undertake development of multipurpose cargo berth off Tuna Tekra in Gulf of Kutch within port limits.
The Project entails construction of an off-shore berthing structure for handling four vessels at a time with allied facilities at the cost of Rs 1,719.22 crore.
The facility shall have the capacity to handle multipurpose cargo of 18.33 MMTPA. Initially, the Project will cater to 15-metre draught vessels of 1,00,000 Deadweight Tonnage (DWT) and accordingly, the channel will be dredged and maintained by the Concessioning Authority with 15 metre draught.
However, during the concession period, the Concessionaire has liberty to handle vessels up to 18 metre draught by deepening and widening in berth pockets.
According to an official statement, development of multipurpose cargo berth off Tuna Tekra at Kandla, will give it a strategic advantage as it will be the closest container terminal serving the vast hinterland of northern part of India.
In addition to increasing the business potential of Kandla, the statement said the project will boost the economy and generate employment.