Suparjya Swain 
Paradip Port has overtaken Deendayal Port, to become the number one major port in terms of highest cargo handled, by clocking 145.38 MMT cargo throughout in 2023-24 fiscal year. What has been the strategy behind achieving this feat and what are your plans going forward?
Achieving the status of the number one major port in terms of cargo handled is undoubtedly a significant accomplishment for Paradip Port. This success can be attributed to a combination of system improvement strategies and forward-thinking planning. If I were to pinpoint few key factors behind this achievement, they would include timely infrastructure development, enhanced multimodal connectivity, operational efficiency, proactive customer engagement and business development initiatives.
Looking forward, we remain committed to operational excellence, leveraging technology, and fostering strategic partnerships to remain No.1 Port for years to come.
Please throw some light on the recent awards and accolades received by Paradip Port Authority.
Paradip Port has risen as a standout in the Indian maritime sector, achieving accolades and setting remarkable records, showcasing its dedication to excellence. “Sagar Shrestha Samman 2023” bestowed by the Ministry of Ports, Shipping, and Waterways has awarded Paradip Port for three categories including the coveted, No.1 Major Port for Annual Performance. Additionally, the Port has received the “Port of Operational Excellence” title at the Global Maritime India Summit 2023, affirming its steadfast commitment to the highest standards in maritime operations and efficiency.
We extend our heartfelt gratitude to the Hon’ble Minister of Ports, Shipping, and Waterways, Shri Sarbananda Sonowal, and the Minister of State, Shri Shantanu Thakur, for their unwavering support and guidance. Their leadership has been instrumental in driving Paradip Port towards these significant achievements.
It is said that the port tariffs at Paradip Port are also relatively less compared to other major ports. What are the other factors which make Paradip the preferred port among the business community for moving EXIM cargo?
Paradip Port’s competitive port tariffs undoubtedly play a significant role in attracting business, but there are several other factors that make it the preferred port among the business community for moving EXIM cargo.
Notably, it holds the distinction of being the highest productive port among Indian ports and has frozen tariffs for three years, further enhancing its attractiveness to stakeholders.
Its strategic location on the east coast of India offers convenient access to major international shipping routes, enhancing its appeal for exporters and importers. The port boasts modern infrastructure, including advanced facilities and equipment, ensuring efficient cargo handling. Investments in multimodal connectivity, such as road, rail, and inland waterways, provide flexibility and cost-effectiveness to customers. Operational efficiency is prioritized through continuous improvement initiatives and a customer-centric approach. Additionally, Paradip Port’s proactive business development engagement fosters strong partnerships and facilitates smooth operations.
Can you elaborate on the range of digital initiatives implemented by the Port to enhance its operational efficiency and streamline administrative processes?
Paradip Port has embarked on a comprehensive journey towards becoming a smart port, leveraging digital solutions to enhance operational efficiency and streamline administrative processes.
The port’s adoption of digital solutions, including the National Logistics Portal (Marine), enterprise business solutions, unmanned weighbridges with gate automation systems, and a new signal station equipped with a next-generation Vessel Traffic Management and Information System, reflects its commitment to efficiency and innovation, aligning with its vision to lead the maritime industry.
Paradip has been a bulk cargo port for long but it has now started catering to containerised cargo as well. What are your plans for growing the containerised cargo throughput at the port?
Paradip Port has tremendous potential for diversification and growth, particularly in the realm of container cargo.
Container traffic at Odisha Ports is at its nascent stage due to lack of container handling ecosystem and absence of port calls of container shipping lines to Odisha ports. On account of this a major chunk of container traffic requirement of the state gets diverted to the neighbouring states such as Andhra Pradesh and West Bengal for EXIM movement through those ports. This adds up additional logistics cost to the customers belonging to Odisha for transporting containers to and from ports in the neighbouring state.
The port is strategically positioned to bolster container traffic and trade, playing a pivotal role in the state’s economic growth. Paradip Port has already developed a 5 MTPA Clean cargo and container terminal, being operated by its PPP operator PICT.
It is pertinent to note that Paradip Port offers the lowest Vessel Related Charges (VRCs) among Indian ports, on top of that it provides significant discounts of up to 75% on VRC for container vessels. We also offer free container scanning facilities at our terminal, ensuring smooth and efficient operations for our valued customers.
The commencement of container services by major shipping liners like MSC, will facilitate direct connectivity from the Port of Colombo to Paradip Port.
Additionally, the completion of the Multimodal Logistics Park being developed by CONCOR will further boost container traffic through our port. There are also plans for facilitating setting up of additional CFSs in the region.
These initiative reflects our commitment to meeting the forecasted growth in container traffic and catering to the evolving needs of our hinterland.
The port is said to be developing a separate berth for handling green hydrogen and green ammonia. Tell us about the loading/unloading and storage infrastructure being developed at the port for handling eco-friendly fuels?
In the recently held Global Maritime Summit 2023, Paradip Port has signed MoUs with four investors of Green Hydrogen and Green ammonia plants to set up plants in the nearby region. The total investment will be to the tune of Rs 50,800 Crs.
These developers have shown interest to develop their green Hydrogen/ Ammonia Facility and have requested for creation of required infrastructure nearest to Paradip Port for export of Green Ammonia or other Green Hydrogen Derivatives.
The Port plans to develop exclusive green hydrogen and green ammonia berth for its export and bunkering with 5 MTPA capacity to be awarded by year 2026 at a cost of Rs 325 Crs.
With this, Paradip Port is geared up to accommodate the development of ecosystem to become a hub for green hydrogen and green ammonia handling in the region.
Could you provide insights into the green initiatives undertaken by Paradip Port to promote environmental sustainability and reduce its ecological footprint?
Paradip Port is committed to environmental sustainability and energy efficiency, undertaking various initiatives to minimize its ecological footprint and promote green practices. These efforts include an ambitious Greenification drive aimed at achieving a million tree coverage by 2025, enhancing carbon sequestration and air quality. The port is progressively transitioning to 100% mechanized cargo handling by 2030 to enhance operational efficiency and reduce carbon emissions. Embracing sustainable energy sources, the port plans for installing a 10 MW solar power plant. Shore power supply will be extend to coastal cargo vessels. Furthermore, the port targets complete electrification of its railway network with phasing out of diesel locomotives, thus promoting cleaner rail transport.
The cargo handled by the entire port sector (including both major and private ports) is expected to grow from 1.4 billion tonnes currently to 2.5 billion tonnes by 2030. Moreover, this growth will be largely driven by coastal shipping of coal and containers. How do you see Paradip Port contributing to this growth story?
The scope of coastal shipping volumes at Paradip Port is substantial, and we are fully aware of the immense potential that coastal shipping holds in transforming maritime transportation in India.
Presently, Paradip Port is the Coastal Shipping Hub of the nation. Paradip Port constitutes a majority share of nearly 30% among the Indian Major port coastal volume. The Port has handled 59.19 MMT of coastal cargo in FY 2023-24, the highest among all Indian Ports. Out of this coastal volume thermal coal has contributed a substantial volume of 43.97 MMT.
In order to further enhance the coastal shipping volume at Paradip, the Port is actively promoting coastal shipping as an environmentally friendly and cost-effective transportation mode. Notably, we have successfully initiated coastal shipping of thermal coal to Western coast ports, serving the requirements of Gencos in Maharashtra, Gujarat, and Rajasthan.
As part of our commitment, we consistently invest in developing coastal shipping infrastructure within the port, encompassing dedicated berths, jetties, and storage facilities. Seamless connectivity with other coastal ports is a priority, with ongoing collaborations to enhance routes and connectivity.
Additionally, we are exploring the potential of offering incentives and concessions to industries, aiming to make coastal shipping an attractive option in terms of both cost and efficiency.
Last year, Paradip Port was recognised as the best port of the country for its overall performance by the government of India. Could you please elaborate on the key performance indicators of the port?
As Chairman of Paradip Port, I’m delighted to elaborate on the key performance indicators that have contributed to our recognition as the best port in the country for our overall performance.
Cargo Throughput: In the fiscal year 2023-24, Paradip Port achieved a remarkable milestone by handling an unprecedented 145.38 million metric tonnes (MMT) of cargo. This exceptional performance surpassed previous records and solidified our position as the highest cargo handling major port in the country.
Coastal Shipping Traffic: We achieved the highest-ever coastal shipping traffic of 59.19 MMT, showcasing our growing prominence as a hub for coastal shipping in India. The significant increase in thermal coal coastal shipping to 43.97 MMT further underscores our port’s importance in facilitating maritime trade.
Berth Productivity and Ship Handling: Paradip Port has continually improved its berth productivity, reaching 33,014 metric tonnes (MT) compared to the previous fiscal year. Additionally, we handled 21,665 rakes and 2,710 ships during the fiscal year, demonstrating our efficiency in vessel handling operations.
System Improvement Measures: Our increased performance in cargo handling can be attributed to various system improvement measures undertaken during the fiscal year. Notable initiatives include optimizing operations at the mechanized coal handling plant, enabling the handling of 16-meter draught cape vessels at the northern dock, and simultaneous handling of different vessel types at coal handling berths.
Financial Performance: Paradip Port’s financial results for the fiscal year reflect a robust performance, with operating revenue crossing Rs. 2,300 crores and operating surplus exceeding Rs. 1,510 crores. The net surplus before tax and after tax also witnessed significant growth, highlighting our financial stability and efficiency in resource management.
I extend my heartfelt congratulations to the entire Paradip Port team, including exporters, importers, officers, staff unions, PPP operators, stevedores, and shipping agents, whose collective efforts have contributed to our remarkable achievements. Paradip Port stands as a beacon of excellence in the maritime sector, and we remain dedicated to delivering world-class services and driving economic prosperity for the nation.
Industry experts opine, no infrastructure should be used for more than 80% of its capacity. What are your plans for capacity upgrade at the port?
Absolutely, I appreciate the concern raised by industry experts regarding infrastructure utilization. At Paradip Port, we are fully cognizant of this principle and have comprehensive plans in place for capacity upgrades to ensure optimal utilization of our infrastructure while meeting growing demands. Here’s an overview of our ongoing and planned capacity augmentation projects:
Western Dock Project: Last year, we awarded the 25 MTPA Western Dock project to JSPL, which is a pivotal step in our capacity expansion journey. This project involves the creation of a new dock equipped with modern infrastructure and handling facilities to accommodate various types of cargo. Additionally, it includes deepening the inner harbor to accommodate Cape vessels with drafts of up to 18 meters. The introduction of Cape vessels will enable us to achieve economies of scale and reduce transportation costs per unit of cargo significantly.
Pipeline Projects: In addition to the Western Dock project, Paradip Port in couple years of time will initiate process for development of 3 new berths, mechanisation of 4 existing berths and 1 green hydrogen berth. This will lead to Paradip to become 100% mechanised port by 2030.
It has been a decade since the launch of the Sagarmala Programme. Can you highlight some key achievements and developments at Paradip Port under this initiative?
Under the able guidance of the Ministry of Ports, Shipping, and Waterways, led by Shri Sarbananda Sonowal, Paradip Port has made significant strides under the Sagarmala Programme.
Presently boasting the highest rated port capacity of 289 MTPA, the port has doubled the traffic handling volume from 71.01 MMT in FY 2014-15 to 145.38 MMT in FY 2023-24. Paradip Port stands out as the highest efficient port, achieving an OSBD of 33014 MT/day in FY 2023-24, marking a 86% increase from 17,736 MT/day in FY 2014-15. Notably, the port has achieved a significant 65% reduction in Turnaround Time, decreasing from 119.76 hours in FY 2016-17 to 41.61 hours in FY 2023-24.
Sagarmala’s transformative impact at Paradip Port is evident through initiatives across its four driving pillars. In Port Modernisation, the completion of four projects totaling Rs 3,265 Crores has added 55 MTPA capacity, with the 25 MTPA Western Dock Project, costing Rs 3,005 Crores, currently under implementation. Under Port Led Industrialization, 769 acres of port land have been allocated for projects worth Rs 8,754 Crores, including the recently completed Multi-Modal Logistics Park (MMLP) at Rs 200 Crores on 100 acres of port land. In Port Connectivity, the successful completion of the 82 km-long Haridaspur-Paradip Rail line, a project costing Rs 3,200 Crores, has enhanced connectivity and facilitated seamless rail transportation. Finally, in Port Community Development, the ongoing modernization of the Paradip Fishing Harbour at Rs 108.91 Crores demonstrates our commitment to holistic port development.
