Essar Ports secures major Kandla cargo terminal contract
Essar Ports won a ₹2,276 cr contract from the Deendayal Port Authority to develop an 18.33-million-tonne Kandla cargo terminal under a 30-year BOT concession, strengthening its port infrastructure presence.
after close1 source ↓machine-written, see hownot a recommendation
- and is planned
- ₹2,276 cr
Essar Ports Limited received a Letter of Award from the Deendayal Port Authority on 21 Oct 2026 to develop a multipurpose cargo terminal at Tuna Tekra in Kandla, Gujarat. The project carries an estimated cost of ₹2,276 cr and is planned to handle 18.33 million tonnes of cargo annually, excluding liquid and container cargo. 🚢
The terminal will be developed under a 30-year Build-Operate-Transfer concession through a public-private partnership. Essar Ports secured the project as the highest bidder in a global competitive bidding process, offering a royalty of ₹61 per tonne to the port authority. The company is expected to invest ₹1,552.57 cr in the project, with the asset eventually transferring to the public authority under the concession agreement.
The award strengthens Essar Ports’ position in India’s port infrastructure and dry-bulk cargo segment. A terminal with 18.33 million tonnes of annual capacity can expand the company’s operating footprint and create a long-duration infrastructure asset, although execution, construction spending and future cargo volumes will determine the project’s eventual contribution. The BOT structure also means the company will operate the terminal during the concession period before transfer to the Deendayal Port Authority. 🏗️
For the broader logistics and infrastructure sectors, the project adds capacity at Kandla, one of India’s important cargo gateways. Its multipurpose design is focused on cargo other than liquid and container traffic, making the award relevant to dry cargo handling and port-linked supply chains. The ₹61-per-tonne royalty offered to the authority will be a key commercial parameter during operations.
The next milestones are the execution of the concession agreement, financial closure, construction progress and the terminal’s commissioning timeline. Investors and sector participants will also track the final financing structure, capital deployment against the stated ₹1,552.57 cr investment and subsequent disclosures on cargo tie-ups or utilisation. ⚓
Source: GK Today, 21 Oct 2026
Not investment advice. For informational purposes only.