Paradip Port

From Global Energy Monitor

Paradip Port is a natural, deep-water port on the east coast of India in the Jagatsinghpur district of Odisha, India.

The port is administered by the Paradip Port Trust (PPT), an autonomous corporation wholly owned by the Government of India.

Location

The port is situated at the confluence of the Mahanadi river and the Bay of Bengal.

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Background

Paradip Port is a multipurpose port with a total cargo handling capacity of 108.5 million metric tons as of 2014. Its 14 berths have a draft of up to 14.5 meters and can accommodate vessels up to 95,000 dwt (deadweight tonnage).[1]

The fully automated coal handling plant, originally commissioned in 2001, can handle up to 21 million metric tons of coal imports per annum.[2] A 2012 Coal Age survey of Indian coal ports states that "The Port of Paradip’s two coal berths are a total of 520 m long with alongside depth of 15 m. Handling thermal coal, the berths can accommodate vessels to 260 m long and up to 60,000-75,000 DWT."[3] The port has several general cargo berths which can also handle coal.[4]

Coal imports at Paradip were steadily increasing. It was reported that coal imports through Paradip Port rose four fold in December 2011 compared to the same period in 2010. Total non-coking coal imports in December 2011 stood at 420,459 tonne against only 93,920 tonne imported in the same month in 2010.[5] Between April and December 2014, Paradip imported more thermal coal and coking coal than any other government-owned port in India. Numbers were up 21% and 7%, respectively, from the same period in 2013.[6] In August 2014, a 16% surge in coal import traffic at Paradip was reported to be causing major congestion, with a backlog of 27 ships waiting for less than half that number of berths. G.P Biswal, deputy conservator of Paradip port, was quoted by Reuters as saying, "We're 100 percent houseful. We're not able to cope with the sudden increase in traffic."[7]

JSW Infrastructure opened an iron ore export terminal in November 2019 with annual capacity of 18 mtpa. The terminal cost ₹7.5bn (approximately US$105 million) to develop.[8][9]

In FY21, the port handled 114.549 million tonnes of cargo, its highest annual total to date.[10][11] An October 2021 news article estimated that the Paradip Port regularly handled 25 million tonnes of coal per year.[12]

Among India's 12 major government-owned ports, Paradip is the largest in terms of thermal coal imports.

Expansion

Ambitious expansion plans at Paradip call for the port's overall capacity to increase to 270 million metric tons per annum (mtpa) by 2023. The planned expansion includes construction of a new western dock complex whose six berths will have a combined capacity of 75 mtpa. Draft at the new berths and several existing berths will be increased to 17.1 meters, allowing the port to accommodate capesize vessels of up to 185,000 tons.[13][14] Current plans would add 65 mtpa of coal capacity at the port: two dedicated coal terminals of 10 mtpa and 30 mtpa, developed by Kakinada Seaports and JSW Infrastructure, respectively, along with a proposed 25 mtpa general dry bulk cargo terminal.

Kakinada Seaports Coal Terminal

In November 2009, the Indian multinational Essar Group was awarded a 30-year concession for the development of a new all-weather, deep draft coal berth at Paradip Port on a BOT (build-operate-transfer) basis. India's Ministry of Environment & Forest (MOEF) approved the new berth in 2012, and Essar reported that the new, mechanized coal berth was to be one of the most advanced of its type in India, with a length of 370m and an annual handling capacity of 14 to 18 million tonnes.[15][16]

However, delays in Paradip Port Trust's handover of land for the project created funding challenges for Essar, and the deal was ultimately scrapped. In 2017, Paradip's port authority accepted fresh bids for the project, and a consortium led by Kakinada Seaports won the right to develop and operate a deep water coal terminal with the capacity to load 10 million tonnes of coking coal per year. Estimated cost of the project is ₹655.56 crore (approximately US$100 million).[17]

A July 2021 update on the Paradip Port website lists a target completion date of October 18, 2021 for the Kakinada coal terminal.[18] However, as of November 2021, there is no indication that the terminal was commissioned; it appears to still be under construction.

As of 2022, the coal terminal has been built as a cape compliant terminal and will handle capesize vessels once the dredging at Paradip Port is completed.[19]

JSW Paradip East Quay Coal Terminal

In 2016, Paradip Port Trust announced that the port had used 100% of its 21 million metric tonne per annum (mtpa) installed coal handling capacity in FY2014-15, and that it was planning to mechanize three of its existing East Quay berths (EQ1, EQ2 & EQ3) to enhance capacity and handle fully laden Panamax vessels.[20]

JSW Infrastructure has acquired the right to redevelop the existing EQ1, EQ2 and EQ3 terminals to create the Paradip East Quay Coal Terminal Pvt. Ltd, a new facility capable of handling 30 million tonnes of coal per year by 2020. The proposed East Quay Coal Terminal will have a 686m-long quay, with berths deepened and strengthened to accommodate large cape size vessels. The terminal will handle exports and coastal movement of domestic coal from Mahanadi Coal Fields.[21][22] The mechanization of the three East Quay berths was estimated to cost ₹1,440 crore (approximately US$193 million).[11]

A July 2021 update on the Paradip Port website lists a target completion date of September 23, 2021 for the JSW coal terminal.[18] However, as of November 2021, there is no indication that the terminal was commissioned; it appears to still be under construction.


In May 2022, commercial operations started at the Paradip East Quay coal terminal. The fully mechanized terminal has an annual handling capacity of 30 million tonnes.[23]

Dry Bulk Terminal Expansion

In August 2021, five companies - Adani Ports and Special Economic Zone (APSEZ), JSW Infrastructure, Essar Ports, Jindal Steel and Power, and Navayuga Engineering Company - submitted bids to construct a 25 million mtpa deep draft dry bulk cargo terminal at the Paradip Port. The estimated cost for the expansion was ₹2,392.13 crore (approximately US$320 million). The terminal will be built in two phases of 12.5 mt capacity each with Phase 1 targeting completion 36 months after the date of the award of the concession. Phase 2 will begin from the date Phase 1 starts commercial operation, and has to be completed within 24 months. The terminal will import coal and limestone and export granulated slag and finished steel products for steel plants operating in the hinterland of Paradip Port.[10]

Project Details

  • Operator: Paradip Port Trust (PPT)
  • Location: Jagatsinghpur district, Odisha, India
  • Existing Coal Capacity (Tonnes per annum): 25 million
  • Additional Proposed Coal Capacity (Tonnes per annum): 65 million (30 mtpa from JSW Terminal; 10 mtpa from Kakinada Seaports terminal; 25mtpa from dry bulk terminal expansion)
  • Expansion Status: Operating (30 mtpa); Construction (10 mtpa); Proposed (25 mtpa)
  • Type: Coal imports
  • Expansion in service: 2022 (30 mtpa)
  • Cost of expansion:
  • Financing for expansion:
  • Coal Source:

Articles and Resources

Sources

  1. "Paradip Port Trust" Paradip Port Trust website, accessed February 2015
  2. "Know Your Port" Paradip Port Trust website, accessed February 2018.
  3. "The Coal Terminals of India ", Coal Age, April 30, 2012.
  4. Infrastructure, Paradip Port Trust, Accessed November 2021
  5. "Thermal coal imports via Paradip rise four fold" Sadananda Mohapatra, Business Standard, January 9, 2011.
  6. "Indian Apr-Dec thermal coal imports via 12 major ports up 18% on year" The Shipping Tribune, January 7, 2015.
  7. "India's coal import rush leads to port congestion" Reuters, September 22, 2014.
  8. JSW Infrastructure commissions India’s most modern iron ore terminal at Paradip Port, JSW Infrastructure, Accessed November 2021
  9. JSW Infrastructure inaugurates iron ore terminal at Paradip Port, Ship Technology, Nov. 27, 2019
  10. 10.0 10.1 P Manoj, Adani, JSW Infra, 3 others in race to build dry bulk terminal at Paradip, Business Line, Aug. 9, 2021
  11. 11.0 11.1 Paradip Port Trust achieves all-time record of 114.55 million tonne cargo handling for FY 2020-21, The New Indian Express, Apr. 2, 2021
  12. Coal minister suggests using Paradip Port Trust as coal hub, Orissa Post, Oct. 28, 2021
  13. "Paradip Port to invest 16,000 cr on capacity expansion" LiveMint, June 7, 2014.
  14. "Paradip Port on a robust expansion mode" MarineLink, June 9, 2014.
  15. "Essar's Paradip Coal Berth receives final Environmental and Forest approval" Essar media release, July 11, 2012.
  16. "Paradip Coal Terminal" Essar Ports website, accessed February 2015.
  17. "Kakinada Seaports consortium wins bid to develop coal terminal at Paradip" The Hindu Business Line, August 1, 2017.
  18. 18.0 18.1 Major On-Going Projects, Paradip Port Trust, Accessed November 2021
  19. With ₹1300-cr coal terminal contract in kitty, JSW Infra begins operations at Paradip Port, Hindu Business Online, May 12, 2022.
  20. "Major Achievements" Paradip Port Trust, June 13, 2016.
  21. "About Paradip Port" JSW Infrastructure website, accessed February 2018.
  22. "JSW Infra ready to invest ₹7,000 cr to expand cargo handling capacity" The Hindu Business Line, September 21, 2017.
  23. "JSW Infra commissions Rs 1,300-cr Paradip East Quay coal terminal," Economic Times, May 12, 2022

Related GEM.wiki articles

External Articles

Wikipedia also has an article on Paradip Port. This article may use content from the Wikipedia article under the terms of the GFDL.