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DP World set to grab India’s Kandla box terminal concession with record royalty offer

DP World is poised to win a new container terminal concession at India’s Kandla Port, also known as Deendayal Port Authority (DPA).

Hindustan Infralog Pvt. Ltd., DP World’s local logistics arm, became the highest bidder for the project, to be awarded a 30-year operating concession. It will be developed at Tuna Tekra, about 25 kilometres from the Kandla harbour.

The Dubai-based company bid approximately US$80 per TEU as royalty or revenue share for the landlord port. According to industry sources, this is the highest-ever bid secured by any Indian landlord port for public-private-partnership (PPP) contracts.

Adani Ports (APSEZ), the other lone bidder for the project, is reported to have offered US$18 per TEU towards royalty.

“The terminal is to be developed at the adjacent east side of the existing Dry Bulk Terminal, currently being operated by AKBTPL [Adani Kandla Bulk Terminal],” the port authority said in a statement. “The terminal will cater to container vessels of size up to 21,000 TEUs, with a draught of 18 metres, without any pre-berthing detention for want of tide. Operations are expected to commence in early 2026.”

The project is estimated to cost around US$550 million, with the private investor mandated to contribute approximately US$525 million.

“Due to its strategic location (closest among all ports - major or minor - to the densely populated and fast developing northern hinterland), the terminal will help in decreasing the cost of container logistics in the country,” DPA said. “With deep draught and latest handling technology, the container terminal is expected to set a new benchmark in productivity and ease of doing business.”

DPA went on to add, “The terminal is expected to transform the economic landscape of Kutch with the creation of several ancillary services (warehousing, etc.), and numerous direct and indirect employment opportunities.”

Kandla (DPA) is one of 12 Indian government-controlled ports, commonly known as major ports. The west coast harbour has steadily lost container market share over the past decade due to growing competition, with the Adani Group consolidating its terminal network in the region.

“The successful implementation of the project shall not only be the dawn of a new bring in mega container handling at Deendayal Port, but will also have a huge positive impact on the economic and social scenario of the Kutch district and Gujarat region at large,” DPA noted.

DP World already holds five terminal concessions across four port locations in India, including two at Nhava Sheva/JNPT. The company recently divested a 26% minority stake it had held in the Visakhapatnam Container Terminal to majority stakeholder JM Baxi Group as part of a new growth strategy.

For more information:
Jenny Daniel
Container News

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