PPT receives three proposals for non-petroleum cargo terminal

Proposals have come from BSE-listed Ganesh Benjoplast, and two non-listed entities- Jain Shipping and Furcee India

Paradip Port Trust (PPT), which had recently floated expression of interest to develop non-petroleum cargo handling terminal at the port site, has received three proposals.

The proposals have come from Bombay Stock Exchange-listed Ganesh Benjoplast, and two non-listed entities- Jain Shipping and Furcee India.

"Three firms have submitted technical bids to develop non-petroleum liquid cargo terminal at the port. We are yet to study their proposals and will float tenders once we go through it," said an official of the port trust.

The port will work as an effective point to deliver non-fuel liquid cargo for the makers of polythene, synthetic fibre and drugs here and in neighbouring states, said an official of one of the bidding firms. Currently, the port can handle only crude oil traffic of Indian Oil Corporation Ltd (IOCL).

The upcoming non-petroleum liquid terminal, the capacity of which is yet to be assessed, will be a private one, unlike other terminals which were set up under built, operate and transfer (BOT) model.

Paradeep port, the only major port in the state, known for handling iron ore and coal traffic apart from few raw materials for fertliser making, has been looking out to make money out of other cargo handling business as iron ore exports slumped following imposition of hefty duty last year.

In the last fiscal, iron ore export from the port slumped by 72 per cent to 4.7 million tonne as higher export duty of 30 per cent and weak Chinese demand weighed on, affecting the port's financial performance. The port has since been exploring opportunities to boost revenue from other cargo traffic.

Last month, it had requested the state government to direct all local industries to route at least half of their cargo via the port.

It has already taken up a host of projects to increase the capacity and has completed the deepening of four berths. The port has initiated proposals to dredge another five berths to 14 meter draft to handle Panamax vessels having capacity to carry 90,000 tonne cargo.

Besides, it has engaged Rites Ltd as a consultant to give a feasibility report on setting up of an Inland Container Depot (ICD). During 2012-13, container traffic volume at the port went up by 57 per cent to 170,000 tonne.