Dhamra port kicks off work on expansion

TIN news:   Adani Group-controlled Dhamra Ports Company Ltd (DPCL) has initiated work on its second phase of expansion, after getting advance possession of 740 acres of land from the Odisha government.
The expansion, which is expected to involve an investment in excess of Rs 10,000 crore, would ramp up cargo handling capacity to over 100 million tonne per annum, up from 25 mtpa currently.
“We have given advance possession of land to Dhamra Port Company Ltd (DPCL). The land lease agreement is expected to be executed shortly with the port authorities”, said an official source.
After the expansion, the port will be capable of handling clean cargo, containers, liquid cargo, LNG, containerized cargo and crude oil. Though DPCL had readied its second phase expansion plan, getting land was the key hurdle to go ahead in its plan.
DPCL authorities refused to comment on the expansion plan.
Currently, the port is equipped with two fully mechanised berths with a combined cargo handling capacity of 25 mtpa. The two berths are capable of handling 12 million tonne of imported dry bulk cargo and 13 million tonne of cargo for exports. The port commenced commercial operations in May 2011.
The port had recorded eight per cent growth in cargo in 2014-15. Total cargo handled by the port inclusive of import and export traffic, stood at 15.45 million tonne (mnt) by the end of 2014-15 compared to 14.31 mnt logged in the year ago fiscal.
In 2014-15, Dhamra port, a deep draught port off the coast of north Odisha, handled 14.05 mnt of import cargo and 1.40 mnt of export cargo. The port’s export cargo shrank 65 per cent in FY 15 compared to 4.08 mnt registered in 2013-14 as curbs on iron ore exports prevailed.
In May 2015, Adani Ports & Special Economic Zone (APSEZ), part of the Adani Group, had acquired Dhamra Port Company Ltd (DPCL) for Rs 5,500 crore.
Prior to the acquisition, DPCL was run as a 50:50 joint venture between Tata Steel and L&T Infrastructure Development Projects Ltd. In one of the biggest port sector deals in recent years, APSEZ has gained a foothold in the eastern sector through acquisition of the Dhamra port.