The Essar Group, Steel Authority of India (SAIL) and Tata Steel have shown interest to use the facilities of Gopalpur Port in Orissa?s Ganjam district.
?Essar Group, SAIL and Tata Steel have discussed with us to use our port facilities at Gopalpur?, Gopalpur Port MD Mahima Mishra told FE. He said the steel majors are keen to have captive berths in the port.
Essar Group chairman Sashi Ruia, leading a team of senior executives of his group, recently visited the Gopalpur port site. The team explored the possibility of setting up a captive berth. Confirming Ruia’s visit, Mishra said senior executives of SAIL and Tata Steel have also discussed about the possibility of participating in dedicated berth development.
The Gopalpur Port is proposing to invest Rs 1,200 crore in the first phase to set up three deep-water berths capable of handling cap size vessels. The channel will have depth of 18.5 m and width of 200 m. The master plan envisages 15 -20 berths.
The port has recently achieved financial closure tying up Rs 868 crore loan syndicated by Punjab National Bank. The port construction, however, is yet to be started as the project is awaiting the green clearance from the environment ministry. ?We have committed to complete the first phase of the project within two years of getting the environment clearance?, asserted Mishra.
Steel companies are looking for captive berths as berthing is becoming costly at government-owned Paradip and Vizag ports. While the turnaround time at Paradip port is 10 days, it is 9 days in Vizag. Port users have to pay about $32,000 per day as demurrage charges.
Essar Goup company, Essar Shipping Ports & Logistic (now known as Essar Ports Ltd) following demerger of the company, has bagged a captive berth in Paradip port under BOOST basis. Essar Steel has signed an MoU with Orissa to set up a 4 million tonne iron ore pellet plant at Paradip. The company has similar facilities at Vizag. It is looking for an another captive berth in Gopalpur port so that it can divert the cargo in case of problem in the two government-owned ports. Similarly Tata Steel, which is going to set up a ferro-chrome plant and a re-bar mill at Gopalpur, looking for a berth for export of the products.