Paradip To Become A Mega Port With Capability To Handle 'Capesize' Vessels

Aligning with the Prime Minister Narendra Modi's futuristic approach and laying emphasis on development of eastern states, a capital-intensive project is being undertaken at Paradip Port to transform it into a world-class modern port with capability to handle capesize vessels.

The "capesize" is the largest class of bulkship that can carry any type of cargo, such as iron ore and coal in main. They are called "capesize" ships as they cannot pass through the Panama Canal and have to go around the Cape of Good Hope to sail between the Pacific and Atlantic oceans.

The project involves deepening and optimization of inner harbour facilities including development of western dock on build, operate and transfer (BOT) basis under Public-Private Partnership (PPP) mode at Paradip Port at an estimated cost of Rs 3,004.63 crore.

This includes capital dredging by the selected concessionaire at a cost of Rs 352.13 cr respectively; and Paradip Port’s investment will be to the tune of Rs 612.50 cr towards providing Common Supporting Project Infrastructure.

Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal said the success of the project is a milestone towards Paradip Port becoming a mega port.

The minister said the project will enhance the Port’s ability to handle capesize vessels, will contribute to Port’s capacity addition of 25 Million Metric Tonne Per Annum (MMTPA) and will result in improvement in the port efficiency, better cargo handling, increased trade and also lead to socio-economic growth including employment generation.

The project will facilitate de-congestion of the port, reduce sea freight making coal imports cheaper, and boost the industrial economy in the hinterland of the port leading to creation of job opportunities. The port, after the project, can easily handle very large ships for which 18 metre draft is required resulting in reduction in logistics cost and will boost EXIM trade in the current global competitive environment.

Paradip Port Authority was commissioned in 1966 as a mono commodity port for export of iron ore. In the last 54 years, the Port has transformed itself to handle a variety of EXIM cargo which include iron ore, chrome ore, aluminium ingots, coal, petroleum products, fertilizer raw materials, lime stone, clinker, finished steel products, containers, etc.

Paradip Port Authority (Concessioning Authority) shall provide the common supporting project infrastructure works like breakwater extension and other ancillary works to facilitate handling capesize vessels by the selected BOT concessionaire with an ultimate capacity of 25 MTPA (million tonnes per annum) in two phases of 12.50 MTPA each. The concession period shall be 30 years from the date of award of concession.

It shall cater to the requirement of coal and limestone imports besides export of granulated slag and finished steel products considering the large number of steel plants established in the hinterland of Paradip Port.