Deendayal Port Authority (DPA), the state-owned entity that runs the Kandla port in Gujarat, signed 18 Memoranda of understanding, cumulatively worth Rs 1.47 lakh crore, during the three-day Global Maritime India Summit-2023 that concluded in Mumbai on October 19, the port authority’s chairman, SK Mehta, told Moneycontrol.
“Distinct timelines (distributed in phases) have been established for each MoU, considering various factors. Nonetheless, developers have forecast that the projects will begin in the fiscal year 2024 and conclude by 2027,” Mehta told Moneycontrol.
He added that DPA is gearing up to build a cutting-edge Green Hydrogen Hub at Deendayal Port and is committed to building a greener maritime future.
Deendayal Port Authority runs the country’s biggest state-owned port by volume and the second largest overall, in Kandla, Gujarat. The port is currently operating at 95 percent capacity, handling bulk cargo such as foodgrains, coal and timber.
Edited Excerpts:
Q. What is the total size of the MoUs signed by Deendayal Port Authority at the Global Maritime India Summit 2023?
Deendayal Port Authority has exchanged MoUs … amounting to Rs. 1.47 lakh crore during the Global Maritime India Summit 2023 in Mumbai.
DPA is gearing up to build a cutting-edge Green Hydrogen Hub at Deendayal Port and is committed to building a greener maritime future.
Most of the agreements were related to port-led industrialisation, development, and modernisation, development of green hydrogen, community development, and training programmes.
MoUs signed by Deen Dayal Port at the Global Maritime Summit
Q. Are the MoUs signed at the GMS part of the Deendayal Port Authority's earlier plan to develop a 26,000-acre renewable park for the production and sale of this fast-emerging clean fuel or are they separate from that project?
DPA has entered into 13 Memorandums of Understanding (MoUs), which are legally non-binding, with leading developers in the field of Green Hydrogen development, its derivatives, and associated infrastructure.
DPA has disclosed these developments on its extensive land bank, comprising 26,000 acres, and the land e-auction process for setting of such provisions was initiated on October 16.
Q. What is the expected timeline for the competition of the MoUs signed by DPA at the Global Maritime Summit?
Distinct timelines (distributed in phases) have been established for each MoU, considering various factors. Nonetheless, developers have forecast that the projects will begin in fiscal year 2024 and conclude by 2027.
Q. You have recently signed a concession agreement with DP World for the development of a mega-container terminal at Tuna-Tekra. What is the timeline for the completion of this project?
DP World has signed a concession agreement with the Deendayal Port Authority to develop, operate and maintain a new 2.19 million TEU per annum container terminal at Kandla.
The 30-year public-private partnership (PPP) project is on a Build-Operate-Transfer (BOT) basis, which can be extended up to 50 years.
The planned container terminal, with a capacity to handle 2.19 million TEUs a year, will cost Rs 4,243.64 crore to build from scratch.
Once fully operational, the port is planning to shift the existing handling of coal from Kandla to Tuna-Tekra, to cater to the future growth in multipurpose cargo (other than container/liquid) traffic.
Once completed in 2027, the new terminal will have a 1,100 metre berth capable of handling vessels carrying more than 18,000 TEU. As part of the concession agreement, the berth can be further extended to 1,375 metres in length.
The Tuna-Tekra container terminal forms a part of the National Infrastructure Pipeline of the government. It also forms part of a plan by the port authority to double its cargo to 267 mt in seven years, or by 2030.
Tuna-Tekra is a satellite facility located some 15 km away from the main Kandla port. The project is expected to begin operations in early 2027.
Q. The government has started beta testing the Unified Logistics Interface Platform, which was proposed under the National Logistics Policy. Are you using any of the datasets available on the platform?
The ULIP platform within the framework of the National Logistics Policy (NLP) has emerged as a crucial instrument for container forecasting, optimising operations, pinpointing bottlenecks in the EXIM process, managing inventory, RFIDs, and storage, among other functions for the Container terminal and Deendayal Port.
Q. Shipping container rates have been volatile in the past year. How has this affected trade volumes and what are the expectations now?
It had resulted in an influx of bagged cargo. However, at present there is no tangible effect, particularly as the shipment of rice has been prohibited by the central government.
Q. Global cargo traffic has fallen in the last year or so due to weakness in global markets. What are your expectations for cargo traffic in 2023-24 compared to the previous year?
Cargo handling of 142 MMT has been projected for FY 2023-24 by the DPA for Kandla Port, against the actual cargo handling of 137.56 MMT in 2022-23.
Q. What are the opportunities and challenges for DPA in the effective implementation of the National Logistics Policy?
The implementation of the National Logistics Policy offers several opportunities, including the potential for enhanced connectivity, the use of digitalization for improved efficiency, infrastructure development for increased competitiveness, and the prospect of contributing to economic growth.
However, it also poses challenges such as achieving seamless intermodal integration, adapting to regulatory compliance requirements, managing infrastructure development costs, and ensuring the skill and training of the workforce to navigate a changing logistics landscape.
Q. What specific measures are being taken to enhance the competitiveness of Indian ports and make them world-class in terms of efficiency and infrastructure?
Indian ports, including Deendayal Port, are implementing a comprehensive set of measures to enhance efficiency and infrastructure.
These measures encompass significant investments in infrastructure development, technology adoption for real-time cargo tracking and automation, enhanced multi-modal connectivity, leaning towards green e-fuels, green hydrogen projects, sustainability initiatives like renewable energy adoption, green port initiatives, a huge addition in the oil jetty infrastructure, streamlining of customs procedures, single-window clearance systems, workforce skill development, mechanised facilities for bulk cargo handling, expanding container handling capabilities, transparency and accountability enhancements, use of digital platforms and public-private partnerships to attract investment and expertise.
Q. With the global shift towards digitalisation and automation in the shipping sector, what initiatives is DPA undertaking to keep India's maritime industry technologically advanced and globally competitive?
Numerous digitalisation and automation initiatives are facilitating DPA's transition towards technological advancement and global competitiveness.
These endeavours encompass enhancements to the port's infrastructure, such as the mechanisation of cargo handling berths, development of a new container terminal, implementation of RFID systems, installation of Quick Release Mooring Hooks, a berthing aid facility, telescopic gangways, oil loading arm, use of mist cannons and road sweeping machines, adoption of an advanced fire-fighting system at the oil jetty area and cargo jetty area as per the latest standards, crane electrification, and incorporation of e-office and ERP/SAP systems.
Q. How will the completion of the Eastern and Western dedicated freight corridors affect the efficiency of the DPA?
The completion of the Eastern and Western dedicated freight corridors is expected to significantly benefit the Deendayal Port Authority (DPA) by enhancing its connectivity with the northern and western hinterland of India.
These corridors will create seamless rail links between crucial production and consumption hubs in the region and the port, leading to more efficient and cost-effective transportation, reduced transit times, and improved operational efficiency for DPA.
The reduced congestion and potential environmental sustainability aspects of these developments are likely to make the port even more competitive, attracting increased business and cargo traffic.
Q. Is DPA taking any particular steps to connect the port with the upcoming dedicated freight corridors (DFC)? Is there any plan to connect the port with Inland Waterways as well?
DPA holds a 26 percent stake in KRCL, a company that has undertaken the doubling and electrification of the Gandhidham-Palanpur railway line connecting the port to West DFC.
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