Paradip port’s new berth faces clearance delay

BHUBANESWAR - The construction of a new deep draught iron ore berth at Paradip port in Orissa is facing a delay as the state government has not yet granted clearance to the project, a senior port official said Saturday.

The port authorities had signed an agreement with Blue Water Iron Ore Terminal Pvt Ltd in July 2009 for the iron ore berth to be constructed on build, operate and transfer (BOT) basis at an estimated investment of Rs.591.35 crore.

Blue Water Iron Ore Terminal Pvt Ltd is a special purpose vehicle of the Noble group, Gammon India and Minerals and Metals Trading Corporation of India Ltd.

Of the total cost, the consortium which formed the special purpose vehicle will invest Rs.506.30 crore. The Paradip Port trust will provide supporting facilities like dredging of channel and berth, railway lines and back-up area at an estimated cost of Rs.85.05 crore.

As per the agreement the construction was supposed to start in January this year.

“The project has not started yet due to the clearance problem,” port Deputy Chairman Biplav Kumar told IANS.

“The Orissa State Coastal Zone Management Authority has to give a clearance. They have already conducted a few meetings which were attended by me,” he said adding that the clearance is expected any time.

“After the clearance, the work is expected to start in two-three months time and they are (BOT operator) hope to complete the project in 18 months,” he said.

After the completion of construction of the berth, the Paradip port will be able to handle iron-ore in Capesize vessels of about 125,000 DWT (Dead Weight Tonnage).

“We are now handling Panamax vessels which have 65,000-80,000 DWT,” Kumar said.