Posco files application to build captive port in Orissa

Bhubaneswar, Feb 1 | Updated: Feb 2 2006, 05:30am hrs
South Korean steel major Posco, has decided to go ahead with its proposal to set up a dedicated port.

The company has submitted a formal application to the state government to develop a captive port at Jatadhari, near Paradip Port.

Government sources told FE the steel giant has formally proposed to the state government to set up a separate port for its steel project.

Posco says Paradip Port, besides getting seriously congested, is located quite far from the site proposed for the plant.

Posco has three options-to use the facilities that Paradip Port has to offer, set up a dedicated berth in the port, or have its own captive ports. The filing of the application makes it quite clear that the company has decided it wants a dedicated port.

Poscos proposal for setting up a captive port north of Paradip Port has resulted in Paradip Port Trust vice-chairman Subrata Tripathy objecting to it. Mr Tripathy told the Centre, in a letter, that the port at Jatadhari would cause erosion and affect the navigability of Paradip Port. Recently, Union shipping minister TR Baalu echoed Mr Tripathy in Parliament.

Steely Resolve

Paradip Port is seriously congested and located quite far from the site proposed for the plant
The filing of the application makes quite clear that Posco wants a dedicated port

Commenting on the objections raised by the ministry, a senior official of the state government told FE the Centre has a very small role to play in this matter as minor ports are a state subject. It is premature to say that the proposed port would have an adverse effect on Paradip Port without an impact study being conducted by a competent authority.

He said the state government will take a final decision on the port project only after completion of the study.