"Deendayal Port Authority Invites Bids for ₹733-Crore Cargo Berth Privatization."

Deendayal Port Authority, the state-owned entity operating the Kandla port in Gujarat, has invited bids to privatise berths 15 and 16 for handling multipurpose clean cargo and containers on a public-private partnership (PPP) basis for a 30-year period. The move is part of the Centre’s asset monetisation programme.

The two berths are currently operated by the port authority after it took over the facility from a private operator whose concession was terminated due to non-performance. The recently constructed berths will now be further developed with private investment of about ₹733 crore.

The port authority plans to privatise the two berths as a single project, citing rising demand for multipurpose clean cargo and the need to attract higher container traffic. In FY25, Deendayal Port handled 150.15 million tonnes of cargo, including containers, liquid cargo, bulk, breakbulk and project cargo. Container volumes stood at 4,75,215 twenty-foot equivalent units (TEUs), handled through a terminal operated by J M Baxi Ports & Logistics Ltd.

According to the tender documents, the project aims to develop a modern, mechanised cargo-handling facility to improve operational efficiency, reduce vessel turnaround time and increase throughput. The two berths will have a combined quay length of 600 metres, enabling them to accommodate two vessels of 300 metres each, and will be supported by a 43.3-hectare backup area for stack yards, a rail yard and allied infrastructure.The berths will have a total handling capacity of 14.10 million tonnes per year, including 5.08 million tonnes of multipurpose clean cargo and up to 6 lakh TEUs of container traffic. They are designed to handle vessels of up to 75,000 deadweight tonnes (DWT) for multipurpose cargo and container ships of up to 6,000 TEUs, with a required draft of 14.5 metres.

The concession will be awarded to a single operator for handling clean cargo—such as iron and steel products, foodgrains, sugar, rice, salt, silica clay and project cargo—as well as containers. The project will be awarded to the bidder quoting the highest royalty per tonne of cargo or per TEU payable to the port authority.

The successful bidder will be required to develop the project in a single phase, including installation of cargo-handling equipment and development of the backup area and allied facilities, within 18 months of the award of the concession.