The Union Cabinet of the Indian government has approved the development of a container terminal at the Deendayal Port in the state of Gujarat.

With an investment of $515m (Rs42.4bn), the concessionaire will be responsible for the construction of the new container terminal at Tuna-Tekra in the Deendayal Port on a build, operate and transfer (BOT) basis under public-private-partnership (PPP) mode.

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Approximately $36m (Rs2.96bn) will be used by the Concessioning Authority for the development of common user facilities.

The concessionaire will be responsible for the designing, engineering, financing, procurement, implementation, commissioning, operation, management, and maintenance of the project.

The project will include building an off-shore berthing structure to handle three vessels at a time, and allied facilities. It will have a handling capacity of 2.19 twenty-foot equivalents (TEUs) per annum.

It will initially handle 14m draught vessels of 6,000 TEUs while the Concessioning Authority will dredge and maintain an access channel at 15.50m for the navigation of 14m container vessels around the clock.

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The concessionaire will also have the flexibility to handle vessels up to 18m draught by deepening/widening its approach channel, berth pocket, and turning circle during the concession period.

Upon commissioning, Tekra Development is expected to bridge a gap of 1.88 million TEUs from 2025.

Situated on the West Coast of India, Deendayal Port serves the hinterland of the northern part of India, including Jammu and Kashmir, Uttar Pradesh, Madhya Pradesh, and Rajasthan. 

In July this year, the Deendayal Port Authority announced plans to invest $745m for the construction of two mega cargo handling terminals.