• India
  • +91-22-41271324
  • contact@shippingtribune.com

The Shipping Tribune


Paradip Port ends Deendayal Port’s 16-year reign as India’s biggest state-owned port

news-details

Paradip Port Authority, the state-owned entity that runs the port at Paradip in Odisha close to the country's mineral rich hinterland, has toppled compatriot Deendayal Port Authority in Gujarat to emerge India's biggest major port (Union government

owned) by volumes handled in the fiscal year that ended on Sunday.

In FY24, Paradip Port Authority handled more than 145 million tonnes (mt) of cargo, a growth of over 7 percent compared to the 135.362 mt handled in FY23.

Deendayal Port Authority, that runs the port at Kandla, has been holding the pole position in cargo handling among the 12 major ports for 16 years
on the trot.

For the last 4-5 years, although Kandla was No 1 and Paradip was No 2, the difference between the two ports was hardly 1-2 million tonnes, port sources said.

"But this year, we have overtaken them by a huge margin of some 12 mt to become the top major port. We were getting all these cargoes in previous years also, but this year we added some 10 mt extra cargo over last year (135.362 mt) and this has happened mainly because of iron ore. In FY23, we didn't get iron ore export but this year we got quite a good volume of iron ore export and there was some incremental cargo in coastal shipping as well as imported coal volume," the sources said.

Biju Patnaik, the then Chief Minister of Odisha and the father of the current Chief Minister Naveen Patnaik, was the architect behind the construction of Paradip Port, the only major port in Odisha, located near the confluence of Mahanadi River and the Bay of Bengal.

Jawaharlal Nehru, the then Prime Minister of India, laid the foundation stone of the Port on 3 January 1962.

The port was inaugurated by Late Peter Stambolic, the then Prime Minister of Yugoslavia, on 12 March 1966, the day the first ship named INS 'Investigator' docked at the new port.

Paradip is the first major port to be commissioned on India's eastern coast after the country gained independence.

Paradip Port is strategically situated to serve a vast hinterland spread across Odisha, Jharkhand, Chhattisgarh, Madhya Pradesh, Uttar Pradesh, Bihar and West Bengal.

The port handles cargo such as crude oil, POL products, iron ore, thermal coal, chrome ore, coking coal, manganese ore, charge chrome, ferro chrome, ferro manganese, limestone, hard coke, ingots and moulds, billets, finished steel, scrap, fertilizer, fertilizer raw material, clinker, gypsum, project cargo and containers.

The Ministry of Ports, Shipping and Waterways which administers Paradip Port, is expected to set a cargo handling target of 150 mt for FY25, potentially making Paradip the first major port to cross 150 mt.

Paradip Port currently has a capacity to handle 289.75 mt of cargo.

The port's ability to sustain the sterling performance in FY24 in dry bulk cargo, mainly iron ore, will depend on China's policy on import of iron ore, trade sources said.

"If iron ore exports through Paradip dips, the scope for increasing the cargo will be mainly in containers," said a trade source.

Keeping this in view, the port management is putting all its efforts on increasing the container volumes to secure additional cargo, the trade source said.

In early March, Mediterranean Shipping Company S.A, the world's biggest container line, launched a shuttle service linking Paradip Port and Colombo Port, putting the eastern coast port and one of the 12 owned by the Union government, on the container map and help diversify the cargo mix.

MV MSC Tiger F made its maiden call at the Paradip International Cargo Terminal Pvt Ltd, the facility run by JM Baxi Ports and Logistics Ltd at Paradip Port, and sailed to Colombo with export aluminium cargo of 90 twenty-foot equivalent units (TEU's) of Vedanta Ltd and 36 TEU's of Jindal Stainless Ltd.

MSC will make three calls in a month at Paradip Port on the Paradip- Colombo route under its SE feeder corridor service catering to export- import cargo, port officials said.

The MSC service follows an innovative scheme finalised by Odisha government to attract container lines and facilitate trade from the state, which was hitherto relying on Visakhapatnam and Kolkata/Haldia ports to send and receive container cargo, paying extra costs.

The Odisha government, per the scheme, has agreed to pay MSC $200 per TEU as viability gap funding (VGF) if the export-import volumes during a ship call at Paradip Port falls below the minimum guaranteed volume of 250 TEUs.

A TEU is the standard size of a container and a common measure of capacity in the container business.

In the second voyage of MSC which sailed out on 26 March, the liner carried more than 250 TEU's, averting the need for VGF. MSC unloaded 524 empty containers and loaded 284 laden boxes for export, indicating the volume potential at Paradip Port, the sources said.

On its part, the Paradip Port Authority is offering 75 percent discount in vessel related charges to container lines besides scrapping the container scanning charges of about Rs3,000 to boost container traffic.

Thailand-based Regional Container Lines (RCL) has also signed a memorandum of understanding with the Odisha government to start a service linking Paradip Port with Port Klang in Malaysia under the viability gap funding scheme offered by the state government, making it the second container line to launch a service from the eastern coast port to facilitate export-import trade from the state.

The Odisha government will pay $200 per TEU as VGF to Regional Container Lines if the export import volumes during a ship call at Paradip Port falls below the minimum guaranteed volume of 180 TEUs.

"Henceforth, prospective clients from Odisha will be no more dependent on ports outside the state for transporting containers," PL Haranadh, Chairman, Paradip Port Authority, said while flagging off the MSC service.

Since starting commercial operations in 1966, Paradip Port has been mostly handling iron ore, coal and crude oil.

"Our approach was only towards improving the coal, iron ore and crude oil traffic. It is time now to diversify the cargo basket as an estimated 2 lakh TEU's are available in the hinterland of Paradip Port. The combined efforts of Paradip Port Authority and the Odisha government has yielded results in attracting a reputed container line like MSC to the port. We have a 5 million tonne capacity terminal at PICT which is no less than any other container terminal in the country with a 14.5 metre draft and state of the art machinery to handle container traffic. It is totally underutilized," Haranadh stated.

Paradip Port is also targeting additional cargo in steel exports from Tata Steel.

The British government has imposed some restrictions on production at Tata Steel's plant in the United Kingdom citing some environmental issues.

To serve its dedicated customers, Tata Steel is planning to move some steel coils, semi-finished or finished products, CR/HR coils to the UK on a regular basis, giving additional volume of about 0.7 mt to the port.

Besides, Tata Steel is also looking to export slag to Bangladesh and other countries which is expected to provide extra cargo of 0.5 mt.

"We are targeting all these because we know we will not get a very big chunk anywhere and it all depends on Indian Railways," port sources said.

Paradip Port Authority has created a capacity for coastal movement of coal to the tune of 62 rakes which translates into 72 mt of coal to cater to the demand.

Coal India Ltd, particularly Mahanadi Coalfields Ltd, can mine that much coal but the only hurdle is that the Indian Railways is not able to supply enough rakes to feed coal from MCL Talcher to Paradip Port, the sources said.

Considering all this, the port authority is putting efforts into generating more container traffic.

"If we can get back the container traffic of Odisha of even up to 75 percent by the end of FY25, that will easily give additional cargo of about 3 mt to the port," the sources added.

Source: The Economic Times

#theshippingtribune #latestnews #shippingnews #dailynews #Maritimenews #shippingindustry #paradipport

You can share this post!

Related News

Comments

Leave Comments

instagram takipçi satın almak

Tik tok izlenme satın al

instagram takipçi satın almak mı istiyorsunuz ozaman sizlere türkiyenin en güvenilir sitesi olan instagramtakipz.com sitesini öneriyoruz iyi alışverişler diliyoruz.