The government has kicked off an ambitious mega container terminal project at Tuna Tekra in Kutch, Gujarat. To be constructed by Dubai-based port-handling organisation DP World along with the Deendayal Port Authority (DPA), the Tuna Tekra Mega Container Terminal is likely to become the largest cargo handling port in the country with a size of 1,100-meter berth capable of handling next-generation containers of 18000 TEU (twenty-foot equivalent units).
The project is set to be completed by 2027, with the government contributing $60 million as a part of a public-private partnership (PPP) and DP World’s share estimated to be around $510 million.
According to Dr. Mohammed Shakil Malek, Principal, FD Mubin College of Engineering & Technology, Ahmedabad, “PPP Projects can prove as a successful partnership for the government if executed efficiently. In my opinion, there are chances that this project will go as smoothly as expected as I can see the major port handlers have taken up the task … I believe this project might be successful if all environmental and political parameters are in favour.”
Employment Generation
The terminal on the Western coast of India is likely to promote exports and will invite businesses from all parts of the country, says S.K. Mehta, Chairman, DPA. Also, as the Indian Railways is increasing its Samakhiali-Gandhidham line by fourfold to provide better connectivity to Tuna Tekra, it is anticipated that the project will bring in employment as well as revenue.
Gujarat Technological University, Ahmedabad, Gujarat, India
Er. Dhiraj S. Bachwani, a Research Scholar at Gujarat Technological University, says planning from the beginning of the project is crucial for such an ambitious feat. “Clear timelines, milestone delivery targets, and proper payment cycles can improve project efficiency. In my opinion, looking at the present government bodies, there are high chances of projects going to the North rather than the South.”
DP World has asked for a royalty of ~ Rs 6,000 per TEU, post-construction. While the project concession is for 30 years, it might get extended for another 20 years to align with the government’s vision to have berths of 1,350-meter capacities.
PPP Initiatives in India
While the Tuna Tekra project is ambitious, India’s track record with PPP projects related to water supply systems or solid waste management has not been the best in the past. Several industry experts have pointed out a host of reasons for the same that can be summed down to five concerning points:
- Cultural differences and the organisational hierarchy
- Lack of planning and scheduling
- Negligence in monitoring the execution
- Unstructured contracts
- Lack of transparency
However, Er. Gautam Tolaney, a retired Civil Engineer with the Deendayal Port Authority is optimistic. “DPA has always delivered what they have promised and generated the highest revenue for the Ministry of Shipping in the past decade, hence … there are high chances that this project will emerge as a testament to DPA’s Success,” he says.
For now, this herculean project is the star of the DPA and everything banks on timely construction.
Copyeditor: Aaryanshi Mohan