Shapoorji Pallonji Group to invest Rs 2,000 crore in Odisha's Gopalpur Port

Posted by Daily Shipping Times on 26-07-2017        Tweet

BHUBANESWAR: The $6-billion Shapoorji Pallonji Group, which has acquired a controlling stake in Gopalpur Port off the coast of Southern Odisha, has pledged an investment of Rs 2,000 crore to ramp up the port's cargo volumes.

The port's cargo handling capacity is envisaged to be raised to 20 million tonnes per annum (mtpa) in the first phase, said a source close to the development. The port will achieve this planned cargo growth by 2020. Two new berths would be added in this expansion. The berths are being designed to handle bulk commodities — iron ore, coal, cement, steel and limestone. The proposed investments to be financed through the Group's internal accruals and some project financing is also meant to put up a new breakwater facility at the port site and increase the scale of mechanisation.

“Our long-term vision is to reach a cargo throughput of 40 mtpa over the next five years. We would be keen to handle container business and also set up the infrastructure for imports of LNG and LPG. Ports on the Eastern Coast have a very good potential to handle LNG and the estimated potential could be 20-25 million tonnes each year”, the source said.

Construction activity on the breakwater and the new berths is expected to take off in September this year. The initial phase ramp-up involves a three-year construction programme.

A consortium by the name of Gopalpur Ports Ltd (GPL) is developing Gopalpur into an all-weather port. Before Shapoorji Pallonji's offer to buy the majority stake in the SPV (special purpose vehicle), GPL was promoted by Delhi-based metals trading company Sara International and Orissa Stevedores Ltd (OSL). The Shapoorji Pallonji Group's stake in GPL would be at least 51%, it can even go the extent of 60%. The Gopalpur Port has one multi-purpose berth with a capacity to handle 3.5 mtpa of bulk cargo.