DPA Gives Ultimatum to DP World on Signing the Concession Agreement by Month-End

Padmesh Prabhune

Deendayal Port Authority (DPA), that runs the Kandla Port in Gujarat, has given an ultimatum to global port operator DP Word Ltd to sign the concession agreement before the end of July, for a mega container terminal it won at the port’s satellite facility in Tuna Tekra about 25 kilometres from Kandla harbor. The terminal is to be developed at the adjacent east side of the existing Dry Bulk Terminal, currently being operated by Adani Kandla Bulk Terminal.

S K Mehta Chairman Deendayal Port Authority in a statement said, “We have asked them to sign the concession agreement for the project before July 31, 2023, else we will see what can be done.”

A concession agreement sets out the terms and conditions of a port contract putting the project in motion.

Earlier, Hindustan Infralog Pvt. Ltd., DP World’s local logistics arm, became the highest bidder for the project with the highest royalty of Rs6,500 for a twenty-foot equivalent unit or TEU to be awarded a 30-year operating concession. However DP world have cited financial problems being faced in view of the PIL being filed seeking to annul the environment clearance granted to the Deendayal Port Authority for expansion of capacity building.

Once completed, the terminal in all its likelihood 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.

-Marex Media