Paradip port offers hybrid cargo terminals to investors

Paradip port proposes to permit private parties to set up hybrid cargo terminals — captive-cum-common user facility — as part of its expansion plans.

Paradip will be the first government port to offer this facility though some private ports have already started doing this.

SS Mishra, Chairman of Paradip Port Trust, said the hybrid terminals will be one of the many new ideas being worked out by the port to attract private investments.

“This will provide private investors the flexibility to ensure optimum unitisation of the port capacity,” Mishra said at a roadshow held by the port in Mumbai recently.

Investors can fix the ratio of captive and third party cargo at 60:40 or 70:30 but there should be a minimum guaranteed throughput, he explained to a gathering of potential investors and port users.

However, the Odisha-based port will have to get the Centre’s permission before offering its innovative concept to investors.

The hybrid concept does not exist in the current policy. It is a new concept which could give more flexibility to terminal operators. The Government will have to take the decision, said A Janardhana Rao, Managing Director, Indian Ports Association.

There is also the issue of tariff regulation. Tariffs at the government ports are regulated by the Tariff Authority for Major Ports and its guideline does not cover the proposed hybrid terminals.

There is separate policy for captive port policy under which port-based industries are given land/waterfront facilities to set up terminals for handling their own cargo.

Mishra is pinning his hope on the new regime at the Centre to get the nod for this new concept. “Let investors come out with their option, getting any approval is our responsibility, he said. Paradip port will soon be inviting bids for developing several bulk and liquid cargo terminals.

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