___________

Ports have economic and infrastructural impact on the nearby areas.  The recently operational Dhamara Port already has given a highway and railway line between Bhadrak and Dhamara. The proposed container depot (discussed in the Dharitri article below) will be another of its initial contribution.

Update: Following is from a report in Business Standard.

… "The Ministry of shipping and highways has more or less agreed to bear 50 per cent of the cost of road and rail connectivity for the minor ports proposed in the state. The ministry had asked us to submit cost estimates for the same and accordingly, we had submitted Rs 1200-crore plan for offering road and rail connectivity for the upcoming minor ports", an official source told Business Standard.

According to the proposal, the cost of rail and road connectivity for the minor ports would be shared equally between the Centre and the port developers.

… Among the 14 locations identified by the state government for the development of ports are Dhamara, Jatadhari Muhan, Barunei Muhan, Astaranga, Bichitrapur, Chudamani and Kirtania to name a few.

The state government had already inked concession agreements with the developers for the development of ports at Dhamara, Gopalpur and Kirtania.

The Orissa government has also signed MoUs (Memorandum of Understanding) with the Hyderabad-based Navayuga Engineering Private Ltd and Aditya Birla Group for setting up of ports at Astaranga and Chudamani respectively.

Following is from a report in Business Standard.

Orissa has witnessed grounding of investment of Rs 4,262.44 crore from non-major ports in the past 10 years.

The investments have made four minor port developers- Dhamara Port Company Ltd (DPCL), Gopalpur Port Ltd (GPL), Creative Port Development Ltd and Navayug Engineering Ltd from 2002-03 up to the end of September this year. …

DPCL, a 50:50 joint venture between Tata Steel and L&T, is the biggest investor, with its investment till the second quarter of 2011-12 standing at Rs 3,570.35 crore.

The port developer, who has already begun operations, has invested Rs 762.79 crore, Rs 1,088.26 crore and Rs 1,059.40 crore in 2008-09, 2009-10 and 2010-11 respectively. In 2011-12, DPCL has invested Rs 60.45 crore till the end of September.

Gopalpur Port Ltd (GPL), a special purpose vehicle promoted jointly by Orissa Stevedores Ltd and Sara International Limited (SIL) has invested Rs 421.09 crore during 2007-08 to September-end of 2011-12. The port developer which is developing the seasonal port at Gopalpur into an all-weather port, has invested Rs 51.09 crore in 2007-08, Rs 30 crore in 2008-09, Rs 50 crore in 2009-10, Rs 40 crore in 2010-11 and Rs 250 crore in this fiscal (till September-end).

The state government has asked the port promoters to commission second phase of the port operations by March 2013. GPL has already claimed to have achieved financial closure of Rs 1,400 crore for the first stage of Phase-II of the deep sea port with the signing of loan agreement with a consortium of 11 banks.

The port at Subarnarekha river mouth, proposed by Chennai-based Creative Port Development, has seen investment of Rs 221 crore.

Creative Port Development had inked an MoU (Memorandum of Understanding) with the state government on December 18, 2006 for setting up a port with an initial capacity of 10 million tonnes per annum (mtpa) which was to be scaled up to 40 mtpa in 10 years.

The port developer had also entered into a concession agreement with the state government on January 11, 2008. As per this agreement, the port developer would share revenue with the state government at the rate of five per cent from first to fifth year, eight per cent from sixth to 10th year, 10 per cent from 11th to 15th year and 12 per cent for the remaining 15 years.

The port at Astaranga in Puri district has witnessed an investment of Rs 50 crore over the past four years.

The port project is being taken up at a cost of Rs 6,500 crore. The initial capacity of the port will be 25 mtpa which will be eventually scaled up to 70 mtpa. The state government had entered into an MoU with Hyderabad-based Navyug Engineering Ltd on December 22, 2008.

The project proponent had signed a concession agreement with the state government in November 2010.

Following is an excerpt from a report in Business Standard.

Petronet LNG Ltd, one of the fastest growing companies in the Indian energy sector has evinced interest in setting up an LNG (Liquified Natural Gas) terminal along the Orissa coast.

Dhamara, Gopalpur and Paradip ports in the state have been identified as the possible locations for the proposed LNG terminal which is set to cost Rs 4,000-5,000 crore.

“Petronet LNG is keen to set up an LNG terminal along the Orissa coast. The company is yet to zero in on any site though Dhamara, Gopalpur and Paradip have emerged as the potential locations. Petronet LNG has told us that the Orissa coast is the most suitable location for setting up the LNG terminal in which Rs 4,000-5,000 crore will be invested,” T Ramachandru, principal secretary (industries), Orissa government told Business Standard.

Petronet LNG is understood to be in talks with Paradeep Port Trust (PPT) authorities as well as promoters of Dhamara Ports Company Ltd (DPCL) and Gopalpur Ports Ltd (GPL) for the project. “We had initial discussions with the officials of Petronet LNG. They have proposed to set up an LNG terminal along the Orissa coast and we are open to the idea of setting up the terminal at Gopalpur. Petronet LNG officials have talked to PPT authorities as well as DPCL,” said Charchit Mishra, director of GPL.

… Petronet runs India’s first LNG receiving and re-gasification terminal at Dahej (Gujarat) having a capacity of 10 million tonne per annum (mtpa), equivalent to 40 mscmd (million standard cubic metres per day) of natural gas. The company is in the process of building another terminal at Kochi (Kerala) which will have a capacity of five mtpa equivalent to 20 mscmd.

Following is from the "About Us" page of Petronet.

Formed as a Joint Venture by the Government of India to import LNG and set up LNG terminals in the country, it involves India’s leading oil and natural gas industry players. Our promoters are GAIL (India) Limited (GAIL), Oil & Natural Gas Corporation Limited (ONGC), Indian Oil Corporation Limited (IOCL) and Bharat Petroleum Corporation Limited (BPCL).

The following map gives an idea that the location picked and being considered by Petronet is not going to be a one-off thing. From the shape of India it becomes clear that many companies who will be importing "things" and distributing them across India would think of three ports: one in the West, one in the South and one in the East. In the East, since Odisha has a much longer coast line than West Bengal, there is a rush to establish ports in Odisha. These ports are going to be a big factor in the development of Odisha. Because of that Odisha is and should be zealously protecting the welfare of its existing and planned ports.

The six new ports are Kirtania (Balasore district), Chudamani (Bhadrak district), Dhamara (Bhadrak district), Astaranga (Puri district), Baliharchandi (Puri district) and Gopalpur (Ganjam district).

Following is a report from Sambada.

Following is an excerpt from a report in Economic Times.

The Rs 3,200-crore Dhamra Port in Orissa, a 50:50 joint venture between Tata Steel and Larsen & Toubro (L&T), is ready and will go operational next month, a top company official said.

Dhamra Port Company Limited (DPCL) has so far invested Rs 2,900-crore out of the total project cost of Rs 3,239-crore and almost 100 per cent work on the project has been completed.

… "We have completed 100 per cent work of the port including the construction work for the 62-kilometer rail link from Dhamra to Bhadrak on the main Howrah-Chennai line," he said.

… Situated between Haldia and Paradip, the port at Dhamra will be the deepest of India with a draught of 18 meters, which can accommodate super cape-size vessels up to 1,80,000 dead weight tonnes (DWT).

DPCL has recently entered into a sister port relationship agreement with the US-based Port of Seattle. The pact is aimed at exchange of information on port users, technology transfer and sharing of best practises between the two ports.

Following is a map from http://www.dhamraport.com/maps.asp.

Following are excerpts from a report in Business Standard.

"The Government of India has announced a major policy initiative to offer Viability Gap Finding (VGF) for providing road and rail connectivity to the minor ports. As per this policy, the Government of India will bear 50 per cent of the cost for the road and rail infrastructure, the state government will provide 30 per cent while the remaining 20 per cent will be borne by the port developers”, G K Dhal, principal secretary (commerce & transport) said.

For the proposed port at Bichitrapur in Balasore district, the road connectivity would be between Jaleshwar and Bichitrapur while the rail connectivity would be from Digha to Bichitrapur.Similarly, for the port proposed at Subarnarekha mouth, also in Balasore district, the road connectivity is proposed between Basta and Choumukha whereas the rail connectivity would be from Haldipada to Choumukha.

The road connectivity for the Dhamara port in Bhadrak district has been envisaged from Jamujhadi on NH-5 to the port site. The rail link is being developed between Bhadrak and Dhamara.

… "The Orissa government has also proposed an industrial corridor on the Meramandali-Angul-Talcher-Chhendipada belt linking the coal mines, power plants and steel plants. Rail India Technical & Economic Services (Rites), the consultancy arm of Indian Railways, has submitted a draft feasibility report in this regard which is under the scrutiny of the state government. The Orissa government intends to form a Special Purpose Vehicle (SPV) for the purpose. This common corridor will be co-habited by multiple players and can be financed by participative funding”, he added.

The link http://www.rvnl.org/project/project_desc.php?id=74 has the following.

This is the latest addition to the list of RVNL projects. (15 of 60 projects in that list involve Orissa.)  It is listed as a port connectivity (PC) project. Among the various proposed ports in that area, Dhamra port is closest to be operational. This link will shorten Rupsa-Chakulia distance from 167 kms to 125 kms. More importantly it will bypass the busy Kharagpur junction and provide an alternative path to Tatanagar. It will also provide a bypass of the area that sometimes gets flooded by the Subarnarekha river.

The following map illustrates the area. (Thanks to Samit for permitting to use this map fragment from his book.)

The following is from SER’s Kharagpur division map.

The complete list of 15 Orissa related projects listed at http://www.rvnl.org/project/project.php are: 

1. (11) KHARAGPUR (NIMPURA) – BHUBANESWAR (GQ electrification – completed)
2. (12) BHUBANESWAR – KOTTAVALASA ELECT (GQ electrification – completed)
3. (14) TALCHAR-CUTTACK-PARADEEP DOUBLING WITH 2ND BRIDGE ON RIVERS BIRUPA AND MAHANADI (GQ doubling completed)
4. (15) DAITARI – BANSPANI NEW LINE (Port connectivity completed)
5. (19) ANGUL – SUKINDA NEW LINE (Post connectivity – under development)
6. (20) JAKHPURA- HARIDASPUR 3RD LINE DOUBLING (Port connectivity – recently sanctioned)
7. (26) RAJATGARH – BARANG DOUBLING (GQ – work in progress)
8. (27) CUTTACK – BARANG DOUBLING (GQ – work in progress)
9. (28) KHURDA ROAD – BARANG 3RD LINE DOUBLING (GQ – work in progress)
10. (44) HARIDASPUR – PARADEEP NEW LINE (Port connectivity – work in progress)
11. (53) TOMKA -BANASPANI – RE (Port connectivity, electrification, recently sanctioned)
12. (54) SAMBALPUR – TITLAGARH – DOUBLING (Port connectivity, recently sanctioned)
13. (55) RAIPUR – TITLAGARH – DOUBLING (Port connectivity, recently sanctioned)
14. (60) BANASPANI – JAKHPURA – DOUBLING (Port connectivity, electrification, unsanctioned)
15. (63) BURAMARA – CHAKULIA – NEW LINE WITH UPGRADING OF RUPSA – BURAMARA (port connectivity, new line, under development)

 With the Gopalpur port getting ready, RVNL should be soon taking up the Gunupur-Theruvali line. 

Update:Tathya has a recent report on who is pursuing which port. Following is a table based on that info.

Following is  from a report in Business Standard.

The construction work of the Rs 2460 crore Dhamara port, being developed by Dhamara Port Company Limited (DPCL), a joint venture of Tata Steel and L & T, is on track with more than one third of the work being completed.

The work is mostly concentrated around building railway connectivity, channel dredging, and berth construction.

DPCL, till date, has invested about Rs 900 crore in the project coming up in Bhadrakh district of Orissa. With the payments of balance dues for procurement of machineries due in the coming months, the investment figure is likely to increase substantially. “Work on all fronts starting from rail connectivity to Bulk Material Handling System (BMHS) is going on in full swing and more than a third of the construction work is over.

We hope to operationalise the first phase of the port by 2010”, Santosh Kumar Mohapatra, chief executive officer (CEO), DPCL told Business Standard. He said, the construction of rail connectivity from Bhadrakh to Dhamara is going on in full scale and the embankment construction is almost complete. Similarly, the construction of berths, cargo handling system, channel dredging is also going on. Meanwhile, the company has already placed orders for all the machineries.

Following is from the PIB http://pib.nic.in/release/release.asp?relid=36480.

RAJYA SABHA

            The list of Ports where Railways are considering rail connectivity is given hereunder:

            The status of the proposals in Gujarat is as under :

Gujarat :

·         Gujarat Maritime Board had commissioned M/s. RITES for a feasibility cum traffic survey report for providing rail connectivity to Rozi & Bedi Port from Windmill Station in year 2003.  GMB has yet to approach Railways for rail connectivity.

·         Gujarat Maritime Board had commissioner M/s RITES for a survey to provide connectivity to Porbandar Port.  The report was submitted in June 2002.  GMB is considering constructing a rail link of 5.1 km from Porbandar to Porbandar Port at their own cost.

            This information was given by the Minister of State for Railways, Shri R. Velu in a written reply in the Rajya Sabha today.

Dharitri has a nice article on the golden future of Dhamara. Following are some of the major projects involving Dhamara. My prediction is that in 10-15 years the Chandbali-Dhamara-Bhitarakanika area will be a beautiful metropolitan area  next to a national park. (See top right in this map.)

1. L & T and the Tatas are building a port in Dhamara.
2. Central government is upgrading Dhamara fishing jetty  to an international fishing harbor.
3. Bharati Shipyard and Appejay group plan to build a shipyard in Dhamara.
4. A railway line connecting Dhamara and Bhadrakh will be build.
5. Good roads will definitely connect Dhamara to nearby National Highways.
6. Dhamara will be a major stop in National Waterway 5.
7. Dhamara is next to the Bhitarakanika National Park (more)

Following is an excerpt from a report in Pioneer.

Though the State Government has not been successful so far to acquire lands for mega industries like Posco and Arcelor- Mittal, it has been able to acquire lands for the upcoming Dhamra Port. The Port will cater to demands of the industries coming up in the Kalinga Nagar area in Jajpur district.

… Revenue Minister Manmohan Samal said the Government had so far acquired 2,033.47 acres of land from three tehsils for Dhamra port. Under Chandbali tehsil, Government has acquired 954.74 acres of land. It has also acquired 564.64 acres of land in Tihiri and 517.27 acres in Bhadrak tehsil. 1,510 people have already got the compensation for giving their land for the port. Another, 683 people will get compensation.

The Port Authority has so far given Rs 56 crore to the district administration for the purpose of giving compensation against land acquisition.

Dharitri has a nice overview (page1, page2, page3) of the status of the various ports that Orissa plans to have. Following are some highlights from that report.

• Aditya Birla group S.L. Mining has expressed interest in developing the Chudamani port in Bhadrakh district. IIT Madras has done the technical evaluation of this project. Page 1 of the article has more details.
• Navajuga engineering of Hyderabad has proposed developing Astaranga port in Puri district. Page 1 of the article has more details.
• Puri ports limited has proposed developing the Baliharchandi port in Puri district. Page 1 of the article has more details.
• Good earth maritime of Madras has proposed developing the port in Bahuda muhana of Ganjam district. Page 1 of the article has more details.
• Gopalpur: Being developed by Orissa Stevedores. Page 2 of the article has more details.
• Dhamara:TISCO and L & T are devloping this port. Page 2 of the article has more details.
• Jatadhari: Being developed by POSCO. Page 3 of the article has more details.
• Paradip: Existing major port. We discussed its expansion plans recently.
• Palur, Ganjam: no proposals yet
• Barunei, Kendarpara: no proposals yet
• Inchudi, Balasore: no proposals yet
• Chandipur, Balasore: no proposals yet
• Bahabalpur, Balasore: no proposals yet

The article says that the Balasore district ports face problems from the Dept. of Defense because of the missile testing range nearby. The article does not mention the following plan:

• Creative ports, Chennai plans to develop the Kirtania port on the mouth of Subarnarekha in Balasore district.