Mormugao Port Trust plans expansion
Mormugao Port Trust is investing over Rs 500 crore for expanding its port-handling capacity.
By Smitha Venkateswaran, TNN |
GOA: In a move that is expected to give a fillip to iron ore exports from Goa, Mormugao Port Trust (MPT) has announced plans for major expansion. MPT, which accounts for 40% of India’s iron ore exports, is investing over Rs 500 crore for expanding its port-handling capacity, by creating additional berths and a carrier-cum-container berth at the adjoining Vasco bay in south Goa.
“We are already handling more than our capacity; the ships are thus forced to wait for long. Increasing our capacity will help augment trade as bigger ships will now be able to dock at our port,” said MPT chairman Praveen Agarwal.
The port is in talks with a private firm to enter into a public private partnership (PPP) for developing the additional port facilities. The entire project is expected to be commissioned by mid-2008.
Strategically-located, MPT is a major hub for exporting high-grade ore originating from neighbouring places, including Hospet in Karnataka. But with MPT consistently handling more ore than its rated capacity of up to 29 MT, there had been large-scale delays, resulting in the shipper suffering losses — $1 per tonne for every day’s wait.
Trade analysts fear that such increasing congestion, coupled with the faulty functioning of a ship loader at MPT, which leads to an average ‘two-day’ delay, shall bring down Goa’s total iron ore exports by at least 15% for the coming season.
“Miners are already reeling under the new export duty, and then you delay their shipments; it can create huge dents in their margins,” says S Sridhar, executive director, Goa Mineral Ore Exporter’s Association. He added that increasing capacity at MPT is a sure way to “boost trade from Goa”. Agreed VM Salgaocar & Bro MD Shivanand Salgaocar: “This will help ships of even 150 tonnes to dock at the port.”
Many international cruises have shown interest, including Queen Mary II based at the Mediterranean coast, that had called in at Goa in March this year, wanting to make Goa its home port. Other cruises include Indian Cruise Liners, Costa Cruise Liners and Carnival Lines. Adds Mr Agarwal, “We have asked some consultants to study the project. It will cost approximately Rs 200 crore”.
“We are already handling more than our capacity; the ships are thus forced to wait for long. Increasing our capacity will help augment trade as bigger ships will now be able to dock at our port,” said MPT chairman Praveen Agarwal.
The port is in talks with a private firm to enter into a public private partnership (PPP) for developing the additional port facilities. The entire project is expected to be commissioned by mid-2008.
Strategically-located, MPT is a major hub for exporting high-grade ore originating from neighbouring places, including Hospet in Karnataka. But with MPT consistently handling more ore than its rated capacity of up to 29 MT, there had been large-scale delays, resulting in the shipper suffering losses — $1 per tonne for every day’s wait.
Trade analysts fear that such increasing congestion, coupled with the faulty functioning of a ship loader at MPT, which leads to an average ‘two-day’ delay, shall bring down Goa’s total iron ore exports by at least 15% for the coming season.
“Miners are already reeling under the new export duty, and then you delay their shipments; it can create huge dents in their margins,” says S Sridhar, executive director, Goa Mineral Ore Exporter’s Association. He added that increasing capacity at MPT is a sure way to “boost trade from Goa”. Agreed VM Salgaocar & Bro MD Shivanand Salgaocar: “This will help ships of even 150 tonnes to dock at the port.”
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In addition to increasing its iron ore handling capacity, MPT also has plans to develop a cruise cum container berth off the Baina Bay at Vasco in south-Goa. Last year, nearly 30,000 cruise passengers arrived at MPT. Of this, majority were from India’s first liner Super Star Libra, home ported in Mumbai. Many international cruises have shown interest, including Queen Mary II based at the Mediterranean coast, that had called in at Goa in March this year, wanting to make Goa its home port. Other cruises include Indian Cruise Liners, Costa Cruise Liners and Carnival Lines. Adds Mr Agarwal, “We have asked some consultants to study the project. It will cost approximately Rs 200 crore”.
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