DP World Bids Over Five Times the Assessed Royalty to Secure Tuna-Tekra Terminal

Dubai government-owned global port operator DP World Ltd secured the tender for the Tuna-Tekra terminal by quoting over five times the royalty internally assessed by Deendayal Port Authority, according to multiple sources. While the internal calculations of the port authority suggested a royalty ranging from Rs300 to Rs. 900 per twenty-foot equivalent unit (TEU), DP World placed the highest-ever royalty bid of Rs6,500 per TEU in January 2023. The bid surprised the industry and left industry experts questioning the viability of DP World's financial returns from the project. The Tuna-Tekra terminal is a critical part of DP World's strategy to maintain its strong footing on India's Western seaboard, especially considering the uncertain extension of its existing terminal concessions in Jawaharlal Nehru Port and Mundra Port.

ET