The Adani Group-promoted Mundra Port and SEZ Ltd (MPSEZL) will invest at least Rs 1,000 crore in the first phase of development of non-LNG port facilities at Hazira in Surat district of Gujarat, and commission the port in 2012.
The listed company had been awarded the Letter of Intent (LoI) for development of non-LNG port facilities at Hazira in November 2009 by Hazira Port Pvt Ltd (HPPL), a joint venture between Shell Gas BV (74 per cent) and Total Gaz Electricite Holdings, France (26 per cent).
The JV had been originally awarded the concession by the State port regulator Gujarat Maritime Board (GMB) and the Gujarat Government, in April 2002, but had developed only an LNG import terminal.
HPPL has been operating LNG facilities at Hazira since 2005 and after international competitive bidding, involving 56 parties, had selected MPSEZL for sub-concession for development of non-LNG cargo port for handling bulk, break bulk, container and liquid cargo
“Although we are studying the number of berths required, we will be starting the port operation in 2012 with three berths in the first phase.
Also, although economic viability requires handling of nearly 12 to 13 million tonnes per annum (MTPA) of cargo, we are creating facilities to handle 20 MTPA of cargo to start with,” Mr Rajeeva Sinha, Director, MPSEZL, told Business Line.
Strategically located
The Hazira port, once fully developed, would be the only common user deep draft port facility in the region.
The construction work would commence as soon as statutory approvals are in place. The overall master plan of the port provides for 13 berths, to be developed in a phased manner, starting with three to four berths for container, liquid and dry bulk in the first phase.
Hazira is strategically located to capture traffic originating/destined from/for South Gujarat, Western Madhya Pradesh and Northern Maharashtra.
Rail connectivity to the port is under progress and alignment has been finalised. Rail connectivity will be done by Rail Vikas Nigam through a special purpose vehicle.
The existing NH-6 connectivity to the port is being upgraded through six-laning of the highway. In addition to Hazira, MPSEZL is also setting up cargo terminals at Dahej in Bharuch district of Gujarat and Mormugao, Goa. It is currently scouting for port development operations on the eastern coast of India, South East Asia and Africa.
“We are moving ahead with talks with various parties for our plans on the eastern coast, off the Bay of Bengal. However, no decision has been taken so far,” Mr Sinha added. MPSEZL is currently managing India's largest privately-managed multi-commodity port at Mundra in terms of cargo handling, having handled 36 million tonnes in 2008-09 and is expected to handle 44 million tonnes in the current fiscal (2009-10).
It is also developing the world's largest and fully-mechanised coal import terminal to cater to various power projects, including those being developed by the Tatas and the Adanis.
Additionally, a single buoy mooring (SBM) for crude oil import is being set up to cater to HPCL-Mittal's upcoming refinery at Bathinda, Punjab.
With all these, the total cargo likely to be handled at Mundra Port is expected to cross the 100 million tonne mark by 2012-13.
Source : Business Line