Cabinet clears construction of iron ore berth at Paradip port

The cabinet committee on economic affairs has approved the construction of a deep draught iron ore berth at Paradip Port.

The new berth, to be developed on a `Build, Operate and Transfer (BOT)' basis, is estimated to cost Rs591.35 crore, out of which Rs506.25 crore will be borne by the BOT operator while Rs85.10 crore will be borne by the Paradip Port Trust.

The iron ore berth would have a length of around 370 meters, and alongside depth of 17.1 meter which will be capable of handling vessels of 1,25,000 dead weight tonnage (DWT) and will have developed stacking area of about 82,125 sq m. The project is to be implemented within a period of 36 months from the date of award of the concession.

The project will help de-congest the port as higher capacity vessels of up to 1,25,000 DWT capacity would be used for handling Iron-ore.

Higher capacities and reduced sea freight would make Iron-ore exports more competitive in the international market.

Besides the direct benefits the new facility would also boost the industrial economy in the hinterland of the port, leading to creation of job opportunities.