Ministry of Shipping, Ports and Waterways on Monday approved a project for development of an oil jetty at Deendayal Port, Kandla (Gujarat) , on build-operate-transfer basis under the PPP mode. The estimated cost of developing the oil jetty will be ₹123.40 crore.

The jetty will handle all types of liquid cargo at Kandla.

Nearly 70 per cent of the cargo handled at Kandla is evacuated by road, while 10 per cent by rail. The remaining 20 is through pipeline.

According to a statement from the Ministry, the project will be developed through a PPP mode and the voncessionaire shall arrange the financing for the project.

While the construction period is estimated to be of 24 months the concession period will be for 30 years. The project will follow a revenue sharing model of royalty per ton.

“The project is a milestone and the jetty will further enhance port capacity along with boosting the overall economic growth for its entire hinterland,” Sarbananda Sonowal, Union Minister of Shipping, Ports and Waterways, said’.

The setting up of the oil jetty is expected to increase cargo handling capacity of the port, which shall attribute to reduction in turn-around time of liquid vessels.

Considering vast hinterland that is dependent on Deendayal Port for seaborne trade and currently prevailing traffic congestion at existing liquid handling facilities of Deendayal Port, capacity additions are of utmost importance there, the Ministry’s statement said.

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In FY23, Deendayal Port, Kandla handled 137.56 million tonnes (mt) of cargo, up over 8 per cent. Last fiscal, cargo handled at the port was 127.10 mt. By 2030, the port is expected to double its cargo handling to at 267 mt, or an annual growth rate of 10 per cent.

The Ministry has already identified 74 projects worth ₹57,000 crore under the Sagarmala programme in Gujarat; out of 15 projects worth ₹9,000 crore have been completed; 33 projects worth more than ₹25,000 crore are under implementation and 26 projects worth ₹22,700 crore are under development.