Paradip Port tops cargo handling with record 145.38 MMT in FY24

In the fiscal year 2023-24, Paradip Port achieved a remarkable milestone by handling 145.38 million metric tonnes (MMT) of cargo, surpassing Deendayal Port to become India’s highest cargo-handling major port. This achievement reflects a 7.4% year-on-year growth, underscoring the port’s increasing significance in India’s maritime sector. The port also recorded its highest-ever coastal shipping traffic of 59.19 MMT, with thermal coal coastal shipping reaching 43.97 MMT, marking a 4.02% increase over the previous year.

To accommodate the growing demand and further enhance its capabilities, PPA has initiated several expansion projects. A key component is the development of the Western Dock, a project aimed at increasing the port’s capacity by 25 MMT. This initiative is progressing under a Public-Private Partnership (PPP) model with Jindal Steel and Power Limited (JSPL) as the operator. Upon completion, the Western Dock will enable Paradip Port to handle fully laden cape-size vessels by 2026, significantly boosting its operational efficiency.

In addition to the Western Dock, PPA plans to mechanize all berths by 2030, transitioning from the current 80% mechanization to full automation. This includes upgrading four semi-mechanized berths and adding four new berths, with approvals anticipated within the current financial year. These enhancements aim to streamline operations, reduce turnaround times, and increase overall productivity.

Financially, Paradip Port has demonstrated robust growth. In the 2023-24 fiscal year, the port’s operating revenue exceeded INR 2,300 crore, a 14.3% increase from the previous year. The operating surplus reached over INR 1,510 crore, reflecting a 16.44% growth, while the net surplus before tax was INR 1,570 crore, a 21.26% increase. The net surplus after tax stood at INR 1,020 crore, marking a 20% rise. Additionally, the operating ratio improved to 36% from 37% in the prior year, indicating enhanced operational efficiency.

Looking ahead, PPA has outlined several future projects to further augment its capacity and infrastructure. The North Dock Complex-3 (NDC-3) berth is planned, with an approximate investment of INR 1,400 crore, aiming to add 20 MMT to the port’s capacity. Additionally, the development of a riverine port in Kendrapara district is proposed, with an estimated cost of INR 2,110 crore and a capacity addition of 45 MMT. These initiatives are part of a broader vision to increase Paradip Port’s capacity to 400 MMT per annum by 2030, with a projected investment of INR 10,000 crore.

Beyond capacity expansion, PPA is committed to sustainable and eco-friendly initiatives. The port plans to develop a 10 MW solar power plant to power its operations entirely with renewable energy. Additionally, there are plans to establish LNG and CNG depots to facilitate green refueling and develop an exclusive berth for handling green ammonia and green hydrogen, positioning Paradip Port as a hub for green energy in the maritime sector.

Connectivity improvements are also on the agenda, with plans to commission two road flyovers within the port premises at a cost of INR 150 crore. These flyovers aim to eliminate surface crossings of rail and road traffic, enabling seamless movement and reducing congestion. Furthermore, as part of port-led industrialization, PPA has allocated 769 acres of land to various industries, attracting investments exceeding INR 8,700 crore and generating an anticipated additional traffic of 50 MMT.

In a significant boost to the region’s industrial landscape, Indian Oil Corporation (IOC) has announced plans to invest INR 61,000 crore to establish a naphtha cracker project in Paradip. This investment is expected to enhance the petrochemical industry in the area, complementing IOC’s existing 300,000 barrels per day refinery in Paradip.

Paradip Port’s expansion and modernization efforts are aligned with national initiatives such as the Sagarmala program and Maritime India Vision 2030, which aim to develop world-class ports and boost India’s maritime trade. These initiatives envision significant investments for capacity augmentation and infrastructure development, positioning Paradip Port as a critical player in achieving these national objectives.