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Paradip Port Trust seeks bids for dry bulk cargo terminal

Friday, 08 Jan 2021
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The Paradip Port Trust has sought initial bids from private firms to build 25 million tonne capacity dry bulk cargo terminal estimated to cost Rs 2,392.13 crore.

Tata Steel, Adani Ports & Special Economic Zone and Essar Ports are expected to bid for the terminal that will handle all dry bulk, break-bulk cargo, both imports and exports.

Potential bidders have time until 18 February 2021 to file their documents. The private operator winning the deal will develop, operate and maintain the terminal for 30 years.

The task of deepening the Western Dock basin and the navigation channel up to the berths, including the turning circle for handling of cape size vessels, will vest with the terminal operator.

The terminal will be built in two phases of 12.5 million tonne capacity each. The construction period for Phase-1 will be 36 months from the date of award of concession. The construction work for Phase-2 will begin from the date Phase-1 starts commercial operations; Phase-2 will be completed in 24 months.

The Paradip Port Trust will set minimum royalty per tonne while inviting price bids. The project will be awarded to the bidder quoting the highest royalty per tonne above the reserve royalty.

The private operator will have to handle a minimum guaranteed cargo (MGC) of 8.75 million tonne and 17.5 million tonne for Phase-1 and Phase-2 of the project, respectively.

It will have to pay contractually-mandated royalty amount for MGC along with damages, if it fails to achieve MGC in a year.

The Trust has four private terminals -- 10 million tonne capacity coal import terminal; 10 million tonne capacity iron ore export terminal; and five million tonne capacity multi-purpose berth to handle clean cargo including containers, and 30 million tonne capacity mechanised facility.

Between April and December 2020, the port located in Odisha handled 82.441 million tonne of cargo.

The planned terminal will cater to the requirement of coal and limestone imports, besides export of granulated slag and finished steel products for steel plants operating in the hinterland of Paradip Port.


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