The Paradip Port in Odisha will be developed into a world-class modern port that will have the capacity to handle Rs 3,004.63 crore Capesize vessels. The port plans to deepen and optimise inland port facilities on a Western Dock on Build, Operate and Transfer (BOT) basis under public-private partnership mode, the Ministry of Ports, Shipping and Shipping said in a statement on Sunday.

“One of the visionary initiatives is the capital-intensive project at Paradip Port, which will transform the port into a world-class modern port capable of handling Capesize vessels. The project’s estimated cost is Rs 3,004.63 crore,” it said.

Capesize bulk carriers are the largest bulk carriers and can carry any cargo such as iron ore and coal. Such ships are called “Capesize” because they cannot pass through the Panama Canal and must circumnavigate the Cape of Good Hope to navigate the Pacific and Atlantic.

According to the statement, the modernisation of Paradip Port includes the development of a new western terminal on a BOT basis and capital dredging by selected concessionaires at Rs 2,040 crore and Rs 3,52.13 crore, respectively.

The investment in Paradip Port will amount to Rs 612.5 crore to provide common supporting project infrastructure.
Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal, said the project would be a milestone in Paradip Port becoming a mega port.

He said this was in line with the Prime Minister’s vision for the development of the eastern states and would help the port increase its capacity by 25 MMTPA (million tonnes per annum) and improve the port’s efficiency. The statement noted that the project would facilitate port dredging, reduce maritime transport, thereby making coal imports cheaper, and boost the industrial economy in the port hinterland, thereby creating jobs.

It added that the port could easily handle massive vessels requiring a draft of 18 meters upon completion of the project, thereby reducing logistics costs and will facilitate import and export trade in the current global competitive environment.

Paradip Port Authority was established in 1966 as a single commodity port for iron ore exports. After the port is transformed, it can handle all kinds of import and export goods, including iron ore, chrome ore, aluminium ingot, coal, fertiliser raw materials, limestone, clinker, finished steel, and containers, etc.

Paradip Port Authority (Concession Authority) shall provide common supporting project infrastructure works such as breakwater expansion and other ancillary works to facilitate selected BOT concessionaires to handle Capesize vessels in two phases (12.50 MTPA per phase) Final Capacity 25 MTPA.

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The concession period will be 30 years from the date of release. It will meet the requirements for the export of granular slag and finished steel products and the import of coal and limestone, considering the huge number of steel plants located inside the port of Paradip.