JSW Infrastructure opens Paradip iron ore terminal

JSW Infrastructure Ltd, the port operating unit of Sajjan Jindal-led JSW Group, opened a new 18 million tonne (mt) capacity iron ore terminal at Paradip Port Trust on Monday mostly to handle third party cargo as it moves from a captive port operator to a commercial operator.

JSW commissioned its new terminal at Paradip by loading approximately 60,000 metric tonnes of iron ore pellets on the bulk carrier MV IC Phoenix for one of the country’s leading pellet manufacturer, Brahmani River Pellets Ltd.

JSW Infrastructure was awarded the rights by Central government-owned Paradip Port Trust to develop a fully mechanised iron ore export terminal on a Build, Operate and Transfer (BoT) basis for 30 years. The company invested about Rs 750 crore to build the facility. The 370 meters’ long terminal is designed to handle capsize vessels for iron ore and pellet exports and can load 100,000 metric tonnes per day.

The high load rate is expected to significantly reduce the pre-berthing delays at Paradip as well as allow incremental cargo flow to the Port. The terminal has two ship-loaders, each with a capacity of 7,000 metric tonnes per hour. It also has an 800,000 metric tonnes cargo storage yard with rotary and tandem wagon tipplers to enable fast rake unloading.

Ports run by JSW Infrastructure at Jaigarh and Dharamtar in Maharashtra and in Goa and Paradip have a combined capacity of over 100 mt and handled a combined 65 mt of cargo in FY19 of which some 90% were the Group’s own cargo.

“By 2025, the captive cargo and third-party cargo mix would be 50:50,” said Arun Maheshwari, Joint MD and CEO of JSW Infrastructure. “We are moving from a dependent port to an independent port operator,” he told Business Line on October 11.

JSW Infrastructure aims to build a port capacity for handling 200 mt by 2022 and 300 mt by 2025 to help handle 215 mt of cargo. Of this, more than 100 mt would be Group cargo and the balance would be third-party cargo.

“The Group cargo is my break-even; that’s my comfort and advantage,” Maheshwari said. Third party cargo would come mostly from the just commissioned iron ore terminal, a new 30 mt coal terminal which will open next year at Paradip Port Trust, 10 mt from Jaigarh port and another 30 mt from other facilities, he said.

“With the commissioning of the iron ore terminal, JSW can now offer cape size shipments from Paradip Port. The capacities are far better than not only any other Indian port but also many ports internationally. The most modern, fully mechanized and environment-friendly terminal will enable minimal handling loss for our customers with faster turnaround. This will help boost competitiveness of customers as well as Paradip Port. This terminal is part of our broader strategy to achieve 200 mt cargo handling capacities in next three years. We will achieve our capacity target through a mix of greenfield and brownfield expansions,” Maheshwari said.