In a shot in the arm for Gujarat’s Kandla port, Dubai’s leading supply chain logistics firm DP World, with operations in several countries, will invest around $510 million to build a new container terminal, the group’s chairman said.
“It will enable the delivery of trade opportunities by connecting northern, western and central India with global markets,” Sultan Ahmed Bin Sulayem, also DP World’s CEO, said after the signing of an agreement between the Deendayal Port Authority and DP World officials.
The Centre had earlier this year approved a plan by Hindustan Infralog Private Limited, a joint venture between DP World and the state-owned National Investment and Infrastructure Fund, to develop the terminal on a Build-Operate-Transfer (BOT) basis.
The new terminal, which should be completed by early 2027, will boost container traffic in India and reduce the cost of logistics, company officials said.
DP World operates five container terminals in India – two in Mumbai and one each in Mundra, Cochin and Chennai – with a combined capacity of about 6 million twenty foot equivalent units (TEUs), giving it a market share of 28 per cent of container traffic volume in the country.
The new terminal will take the combined capacity to 8.19 million TEUs, a company statement said.
DP World’s Indian port and terminal investments are aligned with the country’s Vision 2047, which aims to quadruple port handling capacity and develop logistics infrastructure to boost economic growth, the statement said.
The company, which operates in 73 countries, last week reported a nearly 10 per cent fall in first-half profit to $651 million despite a 13.9 per cent year-on-year rise in revenue to more than $9 billion.
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