Paradip Port's Outer Harbour project at bay on sliding coal demand

Paradip Port Trust (PPT), the second largest major port by cargo volumes after Kandla, has decided to keep in abeyance its 'Outer Harbour' project. Apart from the project cost of Rs 87.67 billion, an additional investment of Rs 35 billion was needed to firm up railway connectivity to the proposed harbour.
 
The project was conceptualized to ship thermal coal primarily to the southern states. But, as demand for thermal coal narrows, PPT has scaled back the plan and is instead focusing on maximizing the capacity of its inner harbour.
 
“Keeping in view the uncertain demand of thermal coal, our DPR (detailed project report) consultant has suggested to optimize berthing facilities in the inner harbour to improve port capacities. To stave off risk posed by a single commodity against the scale of investment needed for the Outer Harbour project, we aim to expand the inner harbour capacity to the maximum”, said a PPT source.

 

As part of its capacity augmentation programme, PPT had engaged a consultant- HOWE Engineering Projects Pvt Ltd. The consultant was tasked to prepare a DPR to assess the projected traffic throughout and also the need to develop an Outer Harbour to handle the projected traffic in Capesize vessels. However, the consultant advised the PPT authorities to reorganize the berthing facilities in the inner harbour.
 
The deepening and optimization of inner harbour facilities include development of two captive berths on the Western dock to handle Capesize vessels. This requires an investment of Rs 26 billion. While PPT has pledged Rs 6 billion investment, the rest would flow from the private players. The combined capacity of the two berths is pegged at 30 million tonnes per annum.

The project envisages of two Western dock captive berths and supporting project infrastructures by PPT like breakwater expansion with protection works and capital dredging.
 
Indian Institute of Technology (IIT), Madras, has completed the geophysical and geotechnical studies in navigational channel and other dredge areas on June 20 this year.