Nestled on the east coast of India, Paradip Port Authority stands as a testament to the country’s burgeoning maritime prowess. Its rich history dates back to the 1960s, when it was envisioned as a deep-sea port to serve the mineral-rich hinterland of Odisha. Since then, Paradip has transformed into a major gateway for India’s international trade, handling a diverse range of cargo, including coal, iron ore, fertilizers, and liquid cargo.
Presently, the rated capacity of the port is 289 MMT per annum, which is the highest among the Major Ports. In the fiscal year 2022-23 alone, the port witnessed a remarkable cargo throughput of 135.36 million tonnes, solidifying its position as a key driver of India’s economic growth. This impressive feat is a culmination of continuous infrastructure upgrades, operational efficiency enhancements, and a focus on attracting diverse industries to the port’s hinterland.
Paradip Port Authority’s journey is far from over. With ambitious expansion plans in the pipeline, the port is poised to play an even more pivotal role in India’s maritime sector, propelling the nation’s international trade and economic prosperity to even greater heights.
India Seatrade spoke to P.L. Haranadh, Chairman, Paradip Port Authority on a range of topics including ongoing projects and their plans for increasing the cargo throughput.
He is an Indian Railway Traffic Service Officer of 1994 batch. Prior to assuming the chairmanship at Paradip Port, Shri Haranadh has served as the Chief Freight Transportation Manager of East Coast Railway, as the Deputy Chairman at Vishakhapatnam Port Authority. He also held the position of Chairman of Syama Prasad Mookerjee Port Authority, Kolkata as additional charge.
Notably, Shri Haranadh has been recognized for his exemplary contributions, receiving the National Award for outstanding management in 2002 and 2005 from the Government of India.
Under his leadership, Paradip Port has received the Sagar Shreshtha Samman’ 2023 award for being the No.1 Port in overall performance and the Port Operational Excellence award during the recently held Global Maritime India Summit 2023.
Demonstrating a sharp acumen for strategic planning, he has made instrumental contributions in developing innovative marketing solutions, such as total logistics solutions to the customers. His dedication and efforts have significantly impacted the rail transportation, port capacity augmentation and port modernisation.
Here are the edited excerpts.
Q: Congratulations on crossing the 100 million MT throughput mark within 262 days in this fiscal (in December 2023). What is the realistic throughput target that you are looking at for this financial year?
Thank you so much for your wishes. Crossing the 100 million MT within 262 days of the financial year, and 22 days ahead of the last year performance, is a remarkable achievement. This is the fastest 100 million MT mark achieved by the port so far in its history. The Port has already clocked an incremental growth of around 8.8 MMT this year, which is the highest among the Major Ports. As we look ahead, our realistic throughput target for this financial year is to continue our impressive performance and aim for a throughput closer to 150 million MT by the year end. We remain committed to operational excellence, leveraging technology, and fostering strategic partnerships to make this ambitious target a reality.
Q: Please throw some light on the on-going capacity augmentation projects in Paradip Port.
Certainly, I’m delighted to provide an overview of the ongoing capacity augmentation projects at Paradip Port. We are committed to transforming the port into a state-of-the-art Mega Port by 2030.
- Last year we have awarded the 25 MTPA Western Dock project to JSPL. The project is pivotal in our capacity expansion efforts as it will significantly enhance our ability to handle diverse cargoes and improve overall efficiency. It involves the creation of a new dock with modern infrastructure and handling facilities to cater to various cargo types. Secondly, this project includes deepening of the inner harbour to enable handling of Cape vessels requiring draft of upto 18 mtrs. The large carrying capacity of Cape vessels translates into economies of scale, resulting in lower transportation costs per unit of cargo. This can significantly reduce the overall cost of shipping bulk commodities.
- In the years to come, Paradip Port has several capacity augmentation projects in pipeline. In order to facilitate the expansion projects of the captive plants in the port vicinity, the Port plans to develop four new berths and mechanise four existing semi-mechanised berths. Also, we plan for developing the South-western dock for 25 MTPA in PPP mode for handling dry bulk cargo through PPP mode.
Thus Paradip Port aims to become first port of the country with 400 MTPA capacity by 2030.
Q: The Port has achieved 135.36 mt of cargo in 2022-23. What steps are being taken to improve the cargo volumes over the next few years?
At Paradip Port, our commitment to optimizing capacity utilization is evident in our achievement of 135.36 MT cargo in the recent fiscal year. Looking ahead, we are taking a four-pronged strategy to enhance cargo volumes:
Diversification: Actively exploring new cargo types, particularly expanding containerized cargo operations for robust growth.
Enhanced Connectivity: Prioritizing improvements in rail and road connectivity to ensure efficient cargo movement and reduce turnaround times.
Strategic Partnerships: Collaborating nationally and internationally to open up new trade routes and drive growth opportunities.
Modernization and Expansion: Ongoing projects like the Western Dock Project and berth expansions will significantly boost our capacity.
Our overarching goal is to position Paradip Port as the preferred choice, offering top-notch facilities, efficient services, and a sustainable approach. We are confident that these initiatives will contribute to substantial improvements in cargo volumes and capacity utilization in the coming years.
Q: Tell us more about the port-led industrialization initiatives taken up by the Paradip Port? What is the current status?
Port led industrialisation has been one of the four dominant pillars of the Sagarmala Programme of the Ministry of Ports shipping and waterways. Under this, Paradip Port had undertaken the initiative to allot over 769 acres of its land to the port dependant industries to set up their plants. The allotted land includes development of a Multimodal Logistics Park by CONCOR, setting up of two iron ore palletisation plants, one Crude Oil Import Terminal by Numaligarh Refinery Ltd and one Tank terminal. Whereas allotted land possession have been handed over to all the respective parties, the construction work for the MMLP and Crude Oil terminal has already been started. The port expects a combined traffic of to the tune of 50 million MT per annum from these industries upon completion of all the projects.
Q: Paradip Port has been identified as one of the three ports for production and handling of green hydrogen. What is your comment on this and what is the road ahead for this?
In the recently held Global Maritime Summit 2023, Paradip Port has signed MoUs to the tune of Rs 50,800 Crs with four investors to set up Green Hydrogen and Green ammonia plants in the vicinity of the port.
These developers have shown interest to develop their green Hydrogen/ Ammonia Facility and have requested for creation of required infrastructure nearest to Paradip Port for export of Green Ammonia or other Green Hydrogen Derivatives.
The Port plans to develop exclusive green hydrogen and green ammonia berth for its export and bunkering with 5 MTPA capacity to be developed by year 2026 at a cost of Rs 325 Crs.
With this, Paradip Port is geared up to accommodate the development of ecosystem to become a hub for green hydrogen and green ammonia handling in the region.
Q: In spite of being the second largest Major Port, Paradip has largely remained as a bulk port. With ever growing industrial activity and container cargo generation/consumption in Odisha, how is Paradip Port gearing up to build container volumes in to its throughput basket?
Indeed, while Paradip Port has established itself as the second-largest Major Port in India, there is tremendous potential for diversification and growth, particularly in the realm of container cargo.
Container traffic at Odisha Ports is at its nascent stage due to lack of container handling ecosystem and absence of port calls of container shipping lines to Odisha ports. On account of this a major chunk of container traffic requirement of the state gets diverted to the neighbouring states such as Andhra Pradesh and West Bengal for EXIM movement through those ports. This adds up additional logistics cost to the customers belonging to Odisha for transporting containers to and from ports in the neighbouring state.
The port is strategically positioned to bolster container traffic and trade, playing a pivotal role in the state’s economic growth. Paradip Port has already developed a 5 million MTPA clean cargo and container terminal, being operated by its PPP operator PICT. The port has been able to grab services of a container shipping liner from Port Klang, Malaysia. Further, the completion of Multimodal Logistics Park (being developed by CONCOR) will boost the container traffic through the port.
In addition to providing substantial concession of up to 75% on Vessel Related Charges for container vessels, the port is actively into dialogue with multiple container lines to establish regular port calls at Paradip Port. Our objective is to position Paradip Port as the preferred gateway for container cargo, fostering the expansion of industrial activities and trade in Odisha and the surrounding region.
Q: What is the scope of coastal shipping volumes at Paradip? What are your plans in this regard?
The scope of coastal shipping volumes at Paradip Port is substantial, and we are fully aware of the immense potential that coastal shipping holds in transforming maritime transportation in India.
Presently, Paradip Port is the Coastal Shipping Hub of the nation. The Port has handled 58.42 million MT of coastal cargo in FY 2022-23, the highest among all Indian Ports. The major ports of India have handled 183 MMT of coastal cargo volume, out of which Paradip Port constitutes a majority share of 32%. Such is the volume and scope of coastal shipping at Paradip Port.
In order to further enhance the coastal shipping volume at Paradip, the Port is actively promoting coastal shipping as an environmentally friendly and cost-effective transportation mode. Notably, we have successfully initiated coastal shipping of thermal coal to West coast ports, serving the requirements of Gencos in Maharashtra, Gujarat, and Rajasthan.
As part of our commitment, we consistently invest in developing coastal shipping infrastructure within the port, encompassing dedicated berths, jetties, and storage facilities. Seamless connectivity with other coastal ports is a priority, with ongoing collaborations to enhance routes and connectivity.
Additionally, we are exploring the potential of offering incentives and concessions to industries, aiming to make coastal shipping an attractive option in terms of both cost and efficiency.
Q: Please tell us more about the various digital initiatives taken up by the Port.
Paradip Port has undergone a notable digital transformation, enhancing efficiency across various operational domains. National Logistics Portal (Marine) have been implemented with over 96% of financial transaction levels at present at Paradip Port. Enterprise business solutions is under advanced stage of implementation to refine administrative processes, boost data management, and enhance overall office productivity. RFID/QR code gate entry-exit systems, along with unmanned weighbridges, have ensured swift and accurate cargo, vehicle, and equipment tracking, reducing manual checks and waiting times. The port utilizes Electronic Import General Manifests (E-IGM) and Electronic Delivery Orders (E-DO), enhancing data accuracy and efficiency in cargo handling. Online applications for berth and plot allotment simplify processes for customers, while a web-enabled GIS-based Land Management System contributes to efficient land allocation and monitoring. These digital solutions collectively underscore Paradip Port’s commitment to operational effectiveness, reduced paperwork, and efficient stakeholder experiences, aligning with its vision to lead in the maritime industry.
Q: What are the steps being taken in terms of sustainability and environment protection?
Paradip Port is dedicated to environmental sustainability and energy efficiency, implementing a range of measures to reduce its ecological impact and promote sustainability. Key initiatives include the ambitious Greenification drive with a goal to have a million tree coverage by 2025, contributing to carbon sequestration and improved air quality.
The port is actively transitioning to 100% mechanized cargo handling by 2030 from current berth mechanisation level of 80% for increased operational efficiency and reduced carbon footprint.
Waste Management initiatives involves operating three Sewage Treatment Plants with a combined capacity of 6.5 MLD and recycling dredged sand for land reclamation for the NRL terminal project.
Paradip Port is actively embracing sustainable energy sources with the installation of rooftop solar panels and plan for setting up a 10 MW solar power plant by 2025. The present provision for shore power supply to small port crafts shall be extended to the coastal cargo vessels by 2024. The port aims for complete rail electrification by 2024, aligning with phasing out all diesel locomotives by 2026, reducing emissions and promoting cleaner rail transport.
Dust management strategies, include Net Barriers, use of dry fog systems, mist cannons, road sweeping machines, and truck tire washing system for fostering a cleaner and healthier port environment.
These collective efforts showcase Paradip Port’s commitment to being an environmentally responsible and eco-friendly maritime facility.
Q: How do you envision the port’s future over the next few years?
Paradip Port envisions a robust growth trajectory, aspiring to transform into a mega port with a formidable capacity of over 400 MTPA by 2030 and exceeding 500 MTPA by the Amrit Kaal 2047. This growth will be underpinned by strategic infrastructure expansions, harnessing cutting-edge technologies, and fostering sustainability at its core. The port aims to amplify its cargo handling capabilities, optimize berth space, and mechanize operations to maximize efficiency.
In conclusion, Paradip Port is poised for a transformative journey, and we are excited about the possibilities that lie ahead. We remain open to collaboration, innovation, and dialogue with our stakeholders, striving to create a more prosperous and sustainable future for the region and the nation.
