Posco insists on captive port, Centre unhappy

South Korean steel giant Pohang Steel Company (Posco) today asserted that it will develop a captive port near state-owned Paradip Port for handling its cargo, contrary to the wishes of the central government.

"You need to realise that ours is a 12 million tonne mega steel plant to be built at a whopping Rs 52,000 crore. So we do need a dedicated port facility and there is nothing wrong about it," said Sang Moo Doh, Posco India's chief representative.

The assertion comes within days of the shipping ministry asking the Orissa government to discourage the world's fourth largest steel maker from developing a separate port at Jatadhari, 12 km from Paradip, saying it would cause enormous soil erosion in upstream Paradip and render it useless, besides upsetting the eco-system.

However, Posco seems to be in no mood to oblige, as Doh pointed out. "In course of our (EIA) study we found that the capacity of Paradip Port is already over-stretched and it is not in a condition to handle our cargo. So, there is no doubt that we definitely need a separate facility," he said.

He said his company's top brass had detailed discussions with senior Orissa government officials and had impressed upon them the need for a separate port. The state government has relented and allowed it to build a separate port at Jatadhari.

He pointed out that besides being located away from the proposed site, the facilities at the southern tip of the Paradip Port were being utilised in a big way by the Indian Oil Corporation, "then how do you expect us to use the same facilities, which have lost their relevance."

"The government of India, as well as the Paradip Port Trust, has impressed upon the Orissa government that the Paradip Port, after deepening of its channels, will be in a position to develop its deep draft dock system and the facility can be made available on a captive basis to Posco," shipping minister T R Baalu told the Lok Sabha in reply to a question on December 20.

The Orissa government has been asked to undertake intensive and detailed studies regarding erosion in the event of a minor port being developed for the Korean steel giant.

The state has also been asked to involve the Centre and Paradip Port in such studies, he said in a written reply to a query. They said the ministry was not against the world's fourth largest steel maker opting for a captive port, but given the sensitivity of the proposed port at Jatadhari, barely 12 km from the Paradip Port, the government was compelled to advice caution.

When asked to comment on the Centre's directive to the Orissa government to undertake a detailed and intensive study regarding erosion if they decided to develop a minor port for the Korean steel giant, Doh hoped it would not have any negative bearing on its proposal to have a separate port at Jatadhari.

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Face-off

Posco asserted that it will develop a captive port near state-owned Paradip Port for handling its cargo

The shipping ministry asked the Orissa government to discourage the company from developing a separate port

On its part Posco has said since a 12 million tonne mega steel plant was to be built there was nothing wrong in the demand