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Deendayal Port: From crisis to triumph

by Kalpana Pandey
January 24, 2025
in Articles & Analysis, Asia, News, Ports & Terminals
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A legacy of necessity and growth

Nestled on the shores of the Gulf of Kutch in Gujarat, Deendayal Port at Kandla is more than just India’s oldest port. It is a testament to the resilience and adaptability of Indian maritime infrastructure. Despite its illustrious history, the port’s journey has not been without challenges. The devastating earthquake of 2001 disrupted operations significantly. However, it also catalyzed transformative initiatives like the ‘Incentive Scheme 2001,’ which attracted investment and industrial growth to the region. Today, Kandla is not just a port but a vital economic driver for Gandhidham, a town thriving on industries linked to shipping and EXIM trade.

Strategic expansion and modernization

Under the dynamic leadership of Sushil Kumar Singh, Chairman of Deendayal Port Authority, the port is undergoing a significant transformation. Singh’s five-month tenure has already witnessed proactive measures to break free from legacy inefficiencies and position the port on a high-growth trajectory.

The Port is undergoing significant infrastructure upgrades to enhance its capacity and diversify its operations, positioning itself as a key player in global maritime trade. Centerpiece of this transformation are Kandla International Container Terminal (KICT) and Tuna Tekra container terminal. KICT container terminal with a capacity of 6,00,000 TEUs has berths with rail siding for loading and unloading of containers which enhances the last mile connectivity.

The Tuna Tekra container terminal is a facility developed by DP World with a planned capacity of 2.19 million TEUs. These terminals contributed to modernize container handling, accommodate larger vessels, and boost the Port’s efficiency and appeal. To support the growing demand for liquid cargo, the port is also constructing new oil jetties and expanding storage facilities.

Recognizing the current limitation of a 14.5-meter draft, strategic plans are in place to deepen the draft, enabling the Port to accommodate larger container vessels and maintain competitiveness in the global shipping landscape. Additionally, the port is diversifying its cargo portfolio, which currently comprises 55 per cent liquid bulk, 40 per cent dry bulk, and 5 per cent containers. Focused efforts aim to increase containerized cargo, capitalizing on its efficiency and broader market reach.

Harnessing strategic location

Deendayal Port’s location on major international sea trade routes is a cornerstone of its strategy. Positioned along the Singapore-Rotterdam corridor, it is an ideal hub for maritime activities. The Port is also aligning with emerging corridors like the India-Middle East-Europe Economic Corridor (IMEC) and the International North-South Transport Corridor (INSTC), which promise to open new trade opportunities with Central Asia and Europe.

Collaborations with global maritime entities like Rotterdam and Singapore Port Authorities underline Kandla’s intent to integrate into international trade networks. These partnerships aim to establish a virtual trade corridor, enhancing connectivity and reducing transit times for goods.

Leading the green maritime transition

Sustainability is at the heart of Deendayal Port’s future vision. With the growing global emphasis on green energy, the Port is positioning itself as a forerunner in green fuels and eco-friendly operations with focus on green hydrogen hub, green bunkering & fuels and green tugs & technologies.

The port is emerging as a key player in the global push for sustainable energy and green maritime solutions through several transformative initiatives. It has designated a vast 3,400-acre expanse to support industries focused on green hydrogen and ammonia production.

By 2030, the Port is poised to become a significant exporter, projecting annual exports of 5–6 million tons of green ammonia, with Europe as the primary destination. Additionally, the Port is spearheading efforts in green bunkering and alternative fuels, laying the groundwork for green methanol bunkering infrastructure.

This development aligns with the anticipated arrival of 200 methanol-compliant vessels by the end of the decade. In collaboration with maritime decarbonization experts and agencies, the Port is ensuring seamless compatibility with next-generation fuels. Notably, Kandla has also set a national benchmark by becoming the first Indian port to tender for green tugs, underscoring its commitment to sustainable operations. Complementing this effort, the establishment of a Center of Excellence for Green Maritime Fuels aims to drive innovation by engaging academia, startups, and industry stakeholders. Collectively, these initiatives position Deendayal Port at the forefront of the green maritime revolution.

Technological integration

Technology plays a pivotal role in Deendayal Port’s modernization drive. Initiatives like RFID-based gate automation, cloud-based enterprise systems, and AI-powered predictive maintenance are enhancing operational efficiency. Digital platforms and Port Community Systems (PCS) are streamlining interactions among stakeholders, reducing turnaround times, and promoting ease of doing business.

The introduction of mechanized handling systems is addressing the Port’s diverse cargo profile, enabling dedicated terminals for specific commodities and improving throughput. For instance, conveyor systems for coal and specialized setups for oversized cargo like wind turbine blades are under consideration.

Transformative leadership

Sushil Kumar Singh’s leadership philosophy of prioritizing user feedback has led to remarkable growth. By implementing user suggestions without procedural delays, Kandla Port achieved a 9.88 per cent growth rate in cargo volume, the highest among Indian major ports.

Singh emphasizes a user-driven approach, empowering stakeholders to define operational needs and ensuring swift execution of their requirements.

Vision 2030: A bold horizon

Deendayal Port’s ambitious goals include reaching a capacity of over 500 million tons per annum by 2030. A significant capacity addition project includes the construction of a six-kilometer-long quay outside the creek to handle dry and break-bulk cargo. This initiative will free up existing berths for liquid cargo, optimizing resource allocation, reducing vessel waiting times, and lowering logistics costs.

The Port is not only breaking free from its legacy constraints but also positioning itself as a global leader in trade and green innovation. As it sails into the future, Kandla exemplifies the spirit of resilience and forward-thinking that defines India’s maritime ambitions.

Tags: Deendayal PortEXIM TradeGujaratkandla

Kalpana Pandey

The Maritime Gateway Editorial Team delivers trusted news, analysis, and insights on shipping, ports, logistics, supply chains, and global trade, backed by industry expertise and editorial review.

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