Kandla International Container Terminal (KICT), is strategically positioned at Deendayal Port in Gujarat’s Kandla Creek, gains from its proximity to key industrial hubs and advanced connectivity, including the Western Dedicated Freight Corridor, to redefine efficiency in containerized cargo movement.
Since its inception in 2017, KICT has charted an impressive growth trajectory, handling record volumes and breaking barriers in operational excellence. From reducing transit times with double-stack container trains to setting industry benchmarks for cargo clearance, this terminal exemplifies India’s march towards becoming a global leader in EXIM trade. With ambitious plans for expansion and a strategic partnership with Hapag-Lloyd AG, KICT is not merely a trade terminal; it is a linchpin driving India’s economic aspirations on the world stage.
Operated by the J M Baxi Group, KICT is strategically located at Deendayal Port, Kandla, a hub for the vast western and northern hinterlands.
A strategic location for seamless connectivity
KICT benefits from its location within the Kandla Creek in the Gulf of Kutch, offering proximity to major industrial zones in Gujarat and beyond. Industries such as ceramic and sanitaryware from Morbi, timber conversion units in Meghpar, and SEZ operations in Gandhidham find logistical advantages through Kandla’s reduced first-leg road distances. Transporters save approximately 150 kilometers
on round trips, making Kandla an economically viable choice for exporters and importers alike.
Moreover, direct rail connectivity to northern and northwestern India through the Western Dedicated Freight Corridor (WDFC) strengthens KICT’s access to vital trade clusters. This integration eliminates delays, reduces costs and enhances the competitiveness of goods routed through the terminal.
The introduction of double-stack container trains to inland container depots (ICDs) in Gurgaon, Ludhiana, and Ahmedabad further boosts connectivity.
A growing hub of containerized trade
KICT’s journey began in 2017, with the signing of a concession agreement between the Deendayal Port Authority and the J M Baxi Group for the development and operation of berths 11 and 12. Since then, the terminal has seen a steady rise in container volumes, reaching 4.89 lakh TEUs in FY23, a significant leap from its initial handling of 1.17 lakh TEUs in FY18.
This growth is a reflection of the rising containerization of cargo in India. With the country’s containerization levels still relatively low, Kandla’s potential for expansion is immense. The terminal’s capabilities were recently showcased when it handled the highest-ever TEU volume for a single vessel, surpassing 5,400 TEUs. This milestone underscores KICT’s ability to cater to the demands of larger vessels and increased trade volumes Infrastructure and operational excellence KICT’s facilities are designed to support efficient and multimodal logistics.
The terminal handling tariffs are competitively priced, offering a 36 per cent reduction for 20-foot laden containers. Vessel-related charges are also attractively low, with a 50per cent reduction for EXIM vessels and 40 per cent for coastal vessels. These pricing strategies enhance KICT’s appeal to shippers and logistics providers.
The terminal serves a wide range of cargo, including bitumen, basmati rice and ceramic tiles, leveraging its excellent connectivity and robust infrastructure. With rail links to CONCOR’s northern ICDs, KICT facilitates double-stack rake services to destinations like Dadri within 36hours, setting a benchmark for transit times. Cargo clearance times are equally impressive, averaging 33 minutes by road and 1.3 hours by rail.
Economic impact and future prospects
The role of Kandla Port, complemented by KICT, in India’s EXIM trade cannot be overstated. The terminal bridges India’s vast hinterland with global markets, enabling exports to key regions such as the Middle East, Africa, and Southeast Asia. The port’s strategic position allows it to act as a conduit for both short-haul regional trade and long-haul international routes, facilitating seamless connectivity between the East and West.
With India’s overall cargo throughput at an all-time high of 1,539 MMT in FY24 and a compound annual growth rate of 7 per cent over the last three years, Kandla is poised to play a critical role in sustaining this momentum. The rising penetration of containerized transportation and the anticipated commissioning of the WDFC are expected to further accelerate KICT’s growth.
Challenges and strategic initiatives
Despite its success, KICT faces some operational challenges that require strategic solutions. Tidal constraints at Kandla Port demand careful navigation planning, while the growing demand for containerized cargo handling necessitates continuous infrastructure upgrades. Technological upgrades, such as automation and predictive maintenance systems, are being implemented to enhance operational efficiency, complemented by user-centric policies that offer competitive tariffs and dedicated customer support to ensure seamless operations and client satisfaction.
