Essar Ports Limited has been awarded the contract to develop a new multipurpose cargo terminal at Tuna Tekra, Kandla, under a Build, Operate and Transfer arrangement, the company said in reports on 21 October 2026.
Sources indicated that the Letter of Award was issued by the Deendayal Port Authority and that Essar Ports emerged as the highest bidder after a global competitive tender.
The award and the bidding process
The Deendayal Port Authority issued a Letter of Award for the Tuna Tekra terminal at Kandla, Gujarat, signalling the start of a public–private partnership project to add multipurpose cargo handling capacity at the site. Essar Ports secured the LOA after participating in a global competitive bidding process and was named the highest bidder in that contest.
Contract model and responsibilities
The project is to be developed on a Build, Operate and Transfer basis under the Public–Private Partnership mode, meaning the private concessionaire will construct and operate the terminal for the agreed concession period before transferring it back to the authority. The reported LOA marks formal recognition by the port authority of Essar Ports as the successful proponent authorised to progress contract formalities.
The announcement does not supply financial terms, concession length or an operational timetable. Those details are normally settled during the post-award stage, when contractual conditions, performance guarantees and execution milestones are finalised between the authority and the concessionaire.
The selection of Essar Ports follows an international tender process, underlining continued interest from private operators in port infrastructure projects in the region. Being the highest bidder in a global procurement typically indicates competitive market interest and sets the commercial framework that will determine investment and tariff proposals.
The Tuna Tekra scheme at Kandla is presented in the LOA as a multipurpose cargo terminal, a format that can accommodate varied cargo types and aims to improve handling flexibility. Multipurpose terminals are commonly used to serve a mix of bulk, breakbulk and general cargo flows, with equipment and berth arrangements designed for operational versatility.
Market participants and stakeholders will expect follow-up announcements from both the Deendayal Port Authority and Essar Ports concerning the timeline for signing of the concession agreement, detailed investment commitments and the technical scope of works. These contractual steps typically precede mobilisation on site and the start of construction activities.
Observers will also watch for the public disclosure of project governance arrangements such as environmental clearances, land use permissions and interface arrangements with existing port operations, which are standard components of large-scale port concessions. Such disclosures are usually required as part of regulatory and financing processes before full implementation can proceed.
The LOA for Tuna Tekra adds to a broader pattern of port authorities seeking private capital and technical capability to expand handling capacity through PPP and BOT frameworks. The successful bidder will be expected to manage construction risk and deliver a terminal that meets operational standards agreed with the authority.
reports first reported the award on 21 October 2026, providing the public confirmation that the Deendayal Port Authority has issued the Letter of Award to Essar Ports for the Tuna Tekra multipurpose cargo terminal at Kandla, Gujarat.
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