Paradip Port in Odisha will be developed into a world-class modern port which will have capability to handle capesize vessels at a cost of Rs 3,004.63 crore.
The project involves deepening and optimisation of inner harbour facilities including development of western dock on build, operate and transfer (BOT) basis under public-private partnership mode at the port, the Ministry of Ports, Shipping and Waterways said in a statement on Sunday.
"One of those visionary initiatives is capital intensive project at Paradip Port which will transform the port into a world-class modern port which will have capability to handle capesize vessels... the estimated cost of the project is Rs 3,004.63 crore," it said.
Capesize is the largest class of bulkship that can carry any type of cargo, such as iron ore and coal. Such vessels are called "capesize" 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.
According to the statement, the modernisation of Paradip Port includes development of the new western dock on BOT basis and capital dredging by the selected concessionaire at a cost of Rs 2,040 crore and Rs 352.13 crore, respectively.
Paradip Port's investment will be to the tune of Rs 612.50 crore towards providing Common Supporting Project Infrastructure.
Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal said the project will be a milestone towards Paradip Port becoming a Mega Port.
He said, this is in line with the Prime Minister's vision of development of eastern states and will contribute to the port's capacity addition of 25 MMTPA (Million Metric Tonne Per Annum)as well as result in improvement of the port's efficiency.
The statement pointed out that the project will facilitate de-congestion of the port, reduce sea freight, thus making coal imports cheaper, and boost the industrial economy in the hinterland of the port leading to creation of job opportunities.
The port, after completion of 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, it added.
Paradip Port Authority was commissioned in 1966 as a mono commodity port for export of iron ore.
The port has transformed itself to handle a variety of EXIM cargo which include iron ore, chrome ore, aluminium ingots, coal, fertilizer raw materials, limestone, 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 in two phases of 12.50 MTPA each.The concession period shall be 30 years from the date of award of concession and it shall cater to the requirement of coal and limestone imports besides export of granulated slag & finished steel products considering the large number of steel plants established in the hinterland of Paradip Port.