Paradip oil jetty to go on stream this month

Port handled all time high cargo last fiscal

The Southern Oil Jetty at Paradip Port, being built at a cost of Rs 191.09 crore, is set to be commissioned this month.

The oils jetty with a capacity to handle 10 million tonnes of liquid cargo annually, is part of the Rs 1,841.07 crore worth of new projects under implementation at the port.

The other projects included, development of 5 million tonne per annum (mtpa) multipurpose-clean cargo berth at a cost of Rs 430.78 core, establishment of 10 mtpa deep draught coal berth on BOT (Build, Operate and Transfer) basis at a cost of Rs 479.01 core and construction of 10 mtpa deep draught iron ore berth also on BOT basis at an investment of Rs 740.19 core.

For setting up of the multipurpose clean cargo container berth, the port has a signed concession agreement with United Liner Agencies Ltd in March, this year. The port had earlier issued Letter of Award (LoA) to the developer on condition of 11.044 % revenue sharing in December, 2014.

Similarly, the long standing issue of clearing the 10 mtpa coal berth site has been sorted out and the developer of the project, Essar group has been asked to deposit the requisite license fees for taking over the site.

Paradip Port Trust (PPT) has signed an agreement on May, 29, this year with JSW Southwest Ports Consortium for construction of 10 mtpa iron ore terminal. As per the pact, PPT will have 21 per cent revenue share in the project.

PPT achieved all time high traffic throughput of 71.01 million tonnes during 2014-15, as against the previous year's traffic of 68.00 million tonnes, exhibiting a growth of 4.42 percent. The traffic handled by the port during the fiscal is 2nd highest amongst all major ports.

The port has achieved total revenue of Rs 1,059.50 crore, operating revenue of Rs 920.94 crore (year-on-year growth of 0.69 per cent), operating surplus of Rs 371.29 crore (1.74 per cent growth), surplus after tax of Rs 261.69 crore (12.26 per cent increase), operating ratio of 60 per cent, utilisation of planned expenditure to the tune of 110 per cent and operating expenditure per tonne of cargo handled to the tune of Rs 77.40, according to a release of the port authorities.

In the current fiscal, PPT is poised to handle 78 million tonne of cargo. During April-May period of this fiscal, the port has already handled 11.66 million tonne, a tad higher than 11.40 million tonne handled in the corresponding period of last fiscal. This is despite the fact that cargo handling of the port declined by 5.28 per cent in April 2015 compared to the previous corresponding period owing to fall in iron ore traffic.

PPT chairman M Krishna Babu and deputy chairman N Vaiyapuri have expressed happiness on the port's achievement and congratulated the officers, employees and workers of the port.

To compete with the neighbouring ports, PPT has taken up the task of deepening the channel and harbour to 20 metres. This would enhance the port's capacity from 108.50 mtpa to 270.50 mtpa by 2023. The deep drought facility will enable the port to handle Capesize vessels.

Some of the port's future projects include mechanization of CQ-I and CQ-II (capacity 20 mtpa), construction of offshore breakwater with LNG terminals and construction of western dock system. This dock system to be equipped with six berths with handling capacity of 75 mtpa, is estimated to cost Rs 2,822.01 crore.