DP WORLD has signed a with the Deendayal Port Authority to build and operate a 2.19 million TEU capacity terminal at Kandla in Gujarat on India's west coast, reports London's Gulf Business.

The project involves construction of a terminal at Tuna-Tekra near the existing Deendayal Port for US$510 million through a public private partnership.

The Deendayal Port Authority awarded the concession in January to develop the mega-container terminal to Hindustan Infralog, a joint venture between DP World and National Investment and Infrastructure Fund, India's collaborative investment platform anchored by the government of India.

The concession is on a build-operate-transfer basis for a period of 30 years with the option to extend for another 20 years.

Once completed in 2027, the 2.19 million TEU per year terminal will have state-of-the-art equipment and a 1,100-metre berth capable of handling next-generation vessels carrying more than 18,000 TEU.

As part of this concession agreement, the berth can be further extended to 1,375 metres.

The terminal will connect to the hinterland through the network of roads, highways, railways and dedicated freight corridors, supporting the growing demand for logistics solutions from across northern, western and central India, connecting businesses in the regions to global markets.

DP World currently operates five container terminals in India - two in Mumbai, one each in Mundra, Cochin and Chennai - with a combined capacity of six million TEU. With the addition of Tuna Tekra, DP World will have a combined capacity of 8.19 million TEU.

Said Minister of Ports, Shipping & Waterways Sarbananda Sonowal: It is the government's ambitious vision to make India an exports hub and also support the creation of direct and indirect employment in various sectors such as transportation, distribution and supply chain."