The proposed project is designed to increase cargo handling capacity of the Deendayal port, which shall attribute to reduction in turn-around time of liquid vessels.
Aiming at handling all types of liquid cargo, Union Ports, Shipping and Waterways Minister Sarbananda Sonowal on Monday (17 April) approved the project for the development of oil jetty (number 9) at the Deendayal Port, Kandla.
The project will be on a build-operate-transfer basis under PPP mode, at an estimated cost of over Rs 123 crore.
While the construction period is estimated to be of 24 months, the concession period will be for 30 years. The project will follow a revenue-sharing model of royalty per ton.
Expressing his happiness Sonowal said, “Our Prime Minister Narendra Modiji once said that Kandla Port has the potential to give a new direction to the nation’s economy and accordingly this project will be another milestone in this journey as this jetty will further enhance the port capacity along with boosting the overall economic growth for its entire hinterland.”
The proposed project is designed to increase cargo handling capacity of the port, which shall attribute to reduction in turn-around time of liquid vessels.
This project is expected to increase the port’s income through collection of royalty from the concessionaire.
Considering the vast hinterland that is dependent on the port for seaborne trade and currently prevailing traffic congestion at existing liquid handling facilities of the Deendayal port, capacity additions are of utmost importance.
Ports play an important role in promoting trade and economic growth in the country.
Expansion, modernization, development and upgradation of port infrastructure in the country is an ongoing process including construction of new jetties, berths and terminals, upgradation of skills of the human resource at ports and mechanization of existing berths and terminals.
The focus of Ministry of Ports, Shipping and Waterways (MoPSW) is on improving efficiency of ports and upgrading them to international standards.
In FY 2023, Deendayal Port, Kandla handled 137.56 MT of cargo marking a growth of 8.23 per cent over the 127.10 MT in the previous year.
70 per cent of the cargo handled at Kandla is evacuated by road, while 10 per cent by rail and 20 per cent through pipeline. By 2030, the port is expected to report an annual growth rate of 10 per cent, doubling its cargo at 267 MT.
It is to be noted that MoPSW, as part of its commitment to the development of the port sector in India, has identified 74 projects worth Rs 57,000 crore under the Sagarmala programme in the state of Gujarat.
Out of the 74 projects, 15 projects worth Rs 9,000 crore have been completed; 33 projects worth more than Rs 25,000 crore are under implementation and 26 projects worth Rs 22,700 crore are under development.
Central line ministries, major ports, state maritime board and other state agencies are implementing these projects.