The Indian government aims to create port capacity of around 3,200 million tonnes (mt) by attracting investments to the tune of Rs 2,87,000 crore to handle the expected traffic of about 2,500 mt by 2020 and bring Indian ports at par with the best international ports in terms of performance and capacity, Exim News Service informs.
This was stated by Mr G. K. Vasan, Union Minister of Shipping, while addressing the valedictory function of the golden jubilee celebrations of Paradip Port Trust at the end of last week.
According to the Shipping Ministry, a major chunk of this amount for capacity expansion is expected from private sector participation through PPP or BOT or BOOT basis. In a message to investors, Mr K. Mohandas, Shipping Secretary, pointed out that states have identified projects for development of non-major ports at an estimated cost of Rs 1.67 lakh crore for creation of additional capacity of 1,294 mt.
"In order to realise the growth potential and become globally competitive, utmost importance has been given for development of quality infrastructure. In line with the overall objective of development, the vision of the Ministry of Shipping is to ensure vibrant, efficient and safe ports and shipping services," Mr Mohandas said.
The preferred route for private sector participation is through open competitive bidding, the Secretary added, saying that in order to bring in uniformity and transparency in the public-private partnership process, standardised model concession agreements have been put in place
On connectivity to Paradip Port, Mr Vasan said that a new Haridaspur-Paradip rail link was under execution by Rail Vikas Nigam Ltd, which would reduce the distance from the iron ore mines of Odisha to Paradip, making exports more viable apart from reducing congestion and freight rates by as much as 50 per cent.
He further stated that the Indian Oil Corporation was establishing a 15 mtpa capacity refinery and a mega petroleum, chemical and petrochemicals investment region (PCPIR) at Paradip. The construction of the 2nd and 3rd single point mooring by IOCL, at an estimated cost of Rs 1,492.33 crore, with capacity of 22 mtpa was underway. Under private sector participation, one 12 mtpa integrated pelletisation facility, based on its strategic locational advantage for importing coal and other raw materials and exporting pellets through Paradip Port, was being set up.
The Minister also informed that the Port had embarked upon an ambitious plan to enhance capacity to 251 mtpa by taking up several capacity addition projects, strengthening rail-road connectivity, and mechanising/modernising the existing facilities to meet the requirements of industries.
Some of the capacity addition projects under execution, he highlighted, were deepening of the channel to handle 1,25,000 DWT vessels at an estimated cost of Rs 293.36 crore, which was expected to create additional capacity of 5 million tonnes per annum, construction of deep-draught iron ore berth and coal berth on BOT basis at an estimated cost of Rs 1,070 crore, which would add 20 mtpa to capacity.
Some of the major projects proposed for execution in the future include construction of western dock system at an estimated cost of Rs 2,822 crore, envisaged to create capacity of 75 mtpa, mechanisation of east quay at an estimated cost of Rs 917 crore, leading to capacity addition of 14 mtpa.
On completion of these projects, the capacity of Paradip Port would reach 251 million tonnes by the year 2020, Mr Vasan underscored.
The Port had a throughput of 56 million tonnes in 2010-11, comprising 31.22 million tonnes of import cargo and 24.81 million tonnes of exports.