Not very long ago, the name Paradip Port was synonymous to dusty cargo. Among the several issues that hindered the growth of the port include shortage of rakes, complete dependence on only bulk cargo and low stevedore productivity. But today, the port has made its way to the helm, to capture the number one position among major ports. This transformation has been brought in under the able leadership of P.L. Haranadh, IRTS, Chairman of the port.
The improvement has been in several parameters across the ecosystem, both in terms of cost and quality – be it tariffs, services provided, berthing on arrival and storage charges. The port is moving heavily towards automation, integrating with National Logistics Portal and ICEGATE. Studies are in progress for berthing of vessels using Artificial Intelligence. The port is expeditiously transforming into a smart port, eliminating physical touch points.
Digital initiatives
Paradip Port has embarked on a comprehensive journey towards becoming a smart port, leveraging digital solutions to enhance operational efficiency and streamline administrative processes. These include the National Logistics Portal (Marine), enterprise business solutions, unmanned weighbridges with gate automation systems, and a new signal station equipped with a next-generation Vessel Traffic Management and Information System.
Coming to financial performance, for the first time, the operating surplus post tax has come to Rs.1000Cr, while the operating ratio is only 36%. For every Rs.100 earned the port is spending Rs.36, which is one of the best operating ratio among major ports.
Most of the cargo coming to the port is through rail. About two years ago customers used to complain about paucity of rakes, but this issue has been addressed on priority. Before 2021-22, the average coal loading/unloading was 17 rakes per day, with minor system improvements now the system is able to handle 26 rakes per day.
Traditionally, Paradip has concentrated on iron ore, coal and crude oil cargo. A lot of containerised cargo is available in the hinterland. About two years ago, in around 200km radius of the port, about two lakh teus cargo was identified, which was either diverted to Haldia or Visakhapatnam Ports. This cargo is being brought back to Paradip Port.
An exclusive berth for containerised cargo along with a few CFSs will be developed, as part of an ecosystem for handling containerised cargo. MSC and RCL shipping lines are now making regular calls to the port, availing 75% concession in vessel related charges. Container scanning charges have been waived off altogether. This year the port targets to handle around 50,000 teus, which will grow to one lakh teus by next year. An MMLP has also been developed by CONCOR for handling containerised cargo.
Paradip Port also leads in terms of coastal cargo handling among all Indian Ports. 25% of the entire country’s coastal cargo is handled at Paradip Port, which has five dedicated berths for coastal cargo. A new common berth for handling coastal plus exim cargo is being planned. The distance between ships calling at coastal berths has been reduced to 10 meters, from 20 meters earlier, which has reduced the waiting time for ships. The idling time of stevedores has been reduced from two hours to half-an-hour.
Coming to liquid bulk, storage tanks are being developed for crude oil, which will be transmitted through pipelines to refineries in Assam. The tanks will be ready in 2025-26, bringing 8-10 million tonnes of extra crude oil cargo to the port.
Awards & accolades
“Sagar Shrestha Samman 2023” bestowed by the Ministry of Ports, Shipping, and Waterways has been awarded to Paradip Port for three categories including the coveted, No.1 Major Port for Annual Performance. Additionally, the Port has received the “Port of Operational Excellence” title at the GMIS 2023.
In the next 12 months…
The port will focus on capacity augmentation. Tenders will be called for new berths and mechanisation of existing berths. The target is to handle 150 million tonnes and cargoes which were not handled traditionally will be targeted. The port will bring in own rakes to deliver cargo at the door step of the customer. The port currently has four docks – one is 16 meters in depth while others are 14.5 meters. A dock on the western side of the port (The Western Dock project) is being awarded to Jindal Steel & Ports Ltd. It will have 18 meters depth and 35 million tonnes capacity for handling imported coal, limestone and steel. Paradip Port will thus become a Cape enabled port.
| Key Performance Indicators – Highest productive port among Indian ports and it has frozen tariffs for coming three years. – In FY2023-24, the port handled 145.38 million metric tonnes of cargo. – Capable of berthing 16-meter draught cape vessels. – Coal rakes loading/unloading has increased from 17 rakes per day to 26 rakes per day. – This year the port targets to handle around 50,000 teus, which will grow to one lakh teus by next year. – The port is progressively transitioning to 100% mechanized cargo handling by 2030. – Exclusive green hydrogen and green ammonia berth to be developed for export and bunkering with 5 MTPA capacity to be awarded by year 2026. – The port constitutes a majority share of nearly 30% among the Indian Major port coastal volume. – Liquid bulk storage tanks are being developed which will add 8-10 million tonnes of extra crude oil handling capacity by 2025-26. – The western dock being developed will have 18 meters depth and 35 million tonnes capacity to berth Cape sized vessels. |
Paradip Port has overtaken Deendayal Port, to become the number one major port in terms of highest cargo handled in FY2023-24. What has been the strategy behind achieving this feat and what are your plans going forward?
Achieving the status of the number one major port in terms of cargo handled is undoubtedly a significant accomplishment for Paradip Port. This success can be attributed to a combination of system improvement strategies and forward-thinking planning. Few key factors include timely infrastructure development, enhanced multimodal connectivity, operational efficiency, proactive customer engagement and business development initiatives.
Looking forward, we remain committed to operational excellence, leveraging technology, and fostering strategic partnerships to remain No.1 Port for years to come.
It is said that the port tariffs at Paradip Port are also relatively less compared to other major ports. What are the other factors which make Paradip the preferred port?
Paradip Port’s competitive tariffs play a significant role in attracting business. Notably, it holds the distinction of being the highest productive port among Indian ports and has frozen tariffs for three years, further enhancing its attractiveness to stakeholders.
Its strategic location on the east coast of India offers convenient access to major international shipping routes. The port boasts modern infrastructure, including advanced facilities and equipment, ensuring efficient cargo handling. Investments in multimodal connectivity, provide flexibility and cost-effectiveness to customers. Operational efficiency is prioritized through continuous improvement initiatives and a customer-centric approach. Additionally, Paradip Port’s proactive business development engagement fosters strong partnerships and facilitates smooth operations.
Paradip has been a bulk cargo port for long but it has now started catering to containerised cargo as well. What are your plans for growing the containerised cargo?
Paradip Port has 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. A major chunk of container traffic thus gets diverted to the neighbouring states such as Andhra Pradesh and West Bengal. This adds up additional logistics cost to the customers belonging to Odisha.
Paradip Port has already developed a 5 MTPA Clean cargo and container terminal, being operated by its PPP operator PICT. Further, the Port offers the lowest Vessel Related Charges (VRCs) among Indian ports, a discount of up to 75% is offered on VRC for container vessels. We also offer free container scanning facilities at our terminal.
The commencement of container services by major shipping liners like MSC, will facilitate direct connectivity from the Port of Colombo to Paradip Port. Additionally, the completion of the Multimodal Logistics Park being developed by CONCOR will further boost container traffic through our port. There are also plans for facilitating setting up of additional CFSs in the region.
The port is said to be developing a separate berth for handling green hydrogen and green ammonia. Tell us about the loading/unloading and storage infrastructure being developed at the port for handling eco-friendly fuels?
At the GMIS 2023, Paradip Port has signed MoUs with four investors of Green Hydrogen and Green ammonia plants to set up plants. The total investment will be to the tune of Rs 50,800Cr. 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 awarded by year 2026 at a cost of Rs 325 Crs.
Could you provide insights into the green initiatives undertaken by Paradip Port to promote environmental sustainability and reduce its ecological footprint?
An ambitious Greenification drive aimed at achieving a million tree coverage by 2025, enhancing carbon sequestration and air quality is planned. The port is progressively transitioning to 100% mechanized cargo handling by 2030 to enhance operational efficiency and reduce carbon emissions. Embracing sustainable energy sources, the port plans for installing a 10 MW solar power plant. Shore power supply will be extend to coastal cargo vessels. Furthermore, the port targets complete electrification of its railway network with phasing out of diesel locomotives, thus promoting cleaner rail transport.
The cargo handled by the entire port sector (including both major and private ports) is expected to grow from 1.4 billion tonnes currently to 2.5 billion tonnes by 2030. Moreover, this growth will be largely driven by coastal shipping of coal and containers. How do you see Paradip Port contributing to this growth story?
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. Paradip Port constitutes a majority share of nearly 30% among the Indian Major port coastal volume. The Port has handled 59.19 MMT of coastal cargo in FY 2023-24, the highest among all Indian Ports. Out of this coastal volume thermal coal has contributed a substantial volume of 43.97 MMT.
We have successfully initiated coastal shipping of thermal coal to Western 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.
Last year, Paradip Port was recognised as the best port of the country for its overall performance by the government of India. Could you please elaborate on the key performance indicators of the port?
As Chairman of Paradip Port, I’m delighted to elaborate on the key performance indicators that have contributed to our recognition as the best port in the country for our overall performance.
- Cargo Throughput: In the fiscal year 2023-24, Paradip Port achieved a remarkable milestone by handling an unprecedented 145.38 million metric tonnes (MMT) of cargo. This exceptional performance surpassed previous records and solidified our position as the highest cargo handling major port in the country.
- Coastal Shipping Traffic: We achieved the highest-ever coastal shipping traffic of 59.19 MMT, showcasing our growing prominence as a hub for coastal shipping in India. The significant increase in thermal coal coastal shipping to 43.97 MMT further underscores our port’s importance in facilitating maritime trade.
- Berth Productivity and Ship Handling: Paradip Port has continually improved its berth productivity, reaching 33,014 metric tonnes (MT) compared to the previous fiscal year. Additionally, we handled 21,665 rakes and 2,710 ships during the fiscal year, demonstrating our efficiency in vessel handling operations.
- System Improvement Measures: Our increased performance in cargo handling can be attributed to various system improvement measures undertaken during the fiscal year. Notable initiatives include optimizing operations at the mechanized coal handling plant, enabling the handling of 16-meter draught cape vessels at the northern dock, and simultaneous handling of different vessel types at coal handling berths.
- Financial Performance: Paradip Port’s financial results for the fiscal year reflect a robust performance, with operating revenue crossing Rs. 2,300 crores and operating surplus exceeding Rs. 1,510 crores. The net surplus before tax and after tax also witnessed significant growth, highlighting our financial stability and efficiency in resource management.
Paradip Port stands as a beacon of excellence in the maritime sector, and we remain dedicated to delivering world-class services and driving economic prosperity for the nation.
Industry experts opine, no infrastructure should be used for more than 80% of its capacity. What are your plans for capacity upgrade at the port?
At Paradip Port, we are fully cognizant of this principle and have comprehensive plans in place for capacity upgrades to ensure optimal utilization of our infrastructure while meeting growing demands. Here’s an overview of our ongoing and planned capacity augmentation projects:
- Western Dock Project: Last year, we awarded the 25 MTPA Western Dock project to JSPL, which is a pivotal step in our capacity expansion journey. This project involves the creation of a new dock equipped with modern infrastructure and handling facilities to accommodate various types of cargo. Additionally, it includes deepening the inner harbor to accommodate Cape vessels with drafts of up to 18 meters. The introduction of Cape vessels will enable us to achieve economies of scale and reduce transportation costs per unit of cargo significantly.
- Pipeline Projects: In addition to the Western Dock project, Paradip Port in couple years of time will initiate process for development of 3 new berths, mechanisation of 4 existing berths and 1 green hydrogen berth. This will lead to Paradip to become 100% mechanised port by 2030.
By implementing these projects, Paradip Port is on track to become the first port in the country with a capacity of 400 MTPA by 2030. These initiatives underscore our commitment to ensuring sustainable growth and enhancing our capabilities to meet the evolving needs of the maritime industry and the economy at large.
