The Hindu Business Line : IOC favours higher capacity crude tankers for Paradip Port

INDIAN Oil Corporation (IOC) is believed to have turned a deaf ear to Paradip Port Trust's (PPT) appeal for allotment of crude tankers of appropriate capacity to the port.

IOC, it is learnt, is insisting on higher capacity tankers, which the port cannot handle, at least immediately, due to draft restriction.

Currently, PPT does not handle any crude traffic but it is keen to do so because it has a full-fledged oil jetty almost ready for commissioning. The port authorities feel that the present draft situation in the jetty, which is about 12.7 metres, is good enough for handling LR I crude tankers of the capacity of 65,000 dwt each. However, IOC favours LR II type, which is of higher capacity, about 80,000 dwt, and therefore requires a higher draft.

IOC sources, however, say that within the next two to three years, Paradip Port will emerge as a major centre of its port operation, so much so that an estimated 12 million tonnes to 13 million tonnes of crude will be routed through it. This will be possible because of the installation of the single buoy mooring (SBM) near the port to handle large crude carriers and construction of the Paradip-Haldia crude pipeline.

Senior officers of IOC recently visited the port and indicated to the authorities the kind of assistance the oil company would expect the port authorities to extend. For example, a powerful tug would be needed to serve the proposed SBM. Also, huge tankers, with a capacity up to 370,000 dwt to be handled would need an average draft up to 30 metres at the SBM, whose location would be about 20 to 22 km from the shore and the distance would be connected by pipelines. Work on the pipeline would start soon and once the pipeline is constructed, the oil jetty would be required to handle crude tankers till such time the SBM was in place. Construction of the pipeline might be over before the installation of the SBM, it is felt.

Meanwhile, PPT is going ahead with its plan to deepen and lengthen the navigable channel at an estimated cost of Rs 140 crore. Right now, the length of the channel is 2 km and the average depth is 14 metres. It is proposed to be lengthened to 8 km with an average depth of 19 metres. The port authorities are awaiting the clearance from the Ministry of Environment & Forest. Once the clearance is obtained, global tenders would be floated to invite bids from international dredging majors. Dredging alone would require about eight months to complete and the entire work about one-and-half months, the sources said, adding, "We would like the work to start soon after the monsoon".