Paradip Port on a robust expansion mode
Paradip Port, one of the twelve major ports of India, located close to the mineral rich states on the East coast plans to add significant capacity to meet the ever increasing demand in the region. As a part of its capacity expansion program, Paradip Port Trust intends to develop a Western Dock complex comprising of 6 berths each with a capacity of at least 10 MTPA.
In this regard, PPT conducted a conference yesterday for potential investors to present the opportunity and take feedback from the investor community.
The Port is situated at 210 nautical miles south of Kolkata has seen a steady growth in traffic over the years having handled an all time record cargo of 68 million tonnes in the last financial year 2013-14 with a growth of 20.25%. This achievement was possible due to rapid expansion in the capacity of the Port over the last decade, when its capacity was augmented by more than 2.5 times to reach the current level of 108.5 million tonnes per annum (MTPA).
In order to support the economic growth in its mineral rich hinterland, the Port has planned several projects for expanding its capacity. The construction of southern oil jetty of 10 MTPA capacity is in progress and is likely to be commissioned during this financial year. Port is planning for mechanization of EQ I,II & III to increase capacity to 30 MTPA, mechanize CQ I & II to increase capacity to 20 MTPA, develop a new iron ore berth of 10 MTPA capacity, a new coal berth of 10 MTPA capacity, a multipurpose clean cargo berth of 5 MTPA capacity, a LNG terminal of 10 MTPA capacity and an Inland Container Depot (ICD).
Apart from the development plans mentioned above, the Port has envisioned the development of a Western Dock Complex comprising of 6 berths. All the berths in the Western Dock as well as Multipurpose berth, Container berth, Iron Ore berth and Oil berth, will have a draft of 17.1 meters and will be able to accommodate cape size vessels of 1,85,000 DWT.
In order to facilitate efficient operations at these berths, the Port has earmarked a total of 94 acres for stack yard. It is estimated that a total investment of Rs 6,000 to 6,500 crores would be required for development of the Western Dock. The cargoes considered for the new dock are coal imports (both thermal and coking), coastal movement of coal (outward movement), fertilizer and containers. The Port intends to develop these berths with participation from the private sector either as a captive facility or as a common user facility under the BOT route.
Already one of the fertilizer majors of the country has shown interest to take a captive berth in he Western Dock. The Port has already initiated the process for taking environment clearance for this project.
The above projects will entail an investment of Rs. 16,000 Crs. over a period of 7 – 9 years with the following investment components:
(a) PPP investment: Rs. 15,100 Crs.
(b) Paradip Port’s investment: Rs. 900 Crs.
On completion the above projects the capacity of the Port will be shored up to 270.50 MTPA by 2023.
( $1 = Rs 59/-)