Mormugao Port Trust has planned to develop a new terminal for coal imports. The 7-million tpa terminal costing Rs 332 crore will be developed on BOT basis under a 30-year concession period. MPT is currently inviting requests for qualification from potential developers. The port trust has targeted to sign the concession agreement by February next year, and the project is scheduled for completion within the ongoing 11th Plan period.
Speaking to Projectmonitor, a senior official said that the coal terminal will be awarded using the new model concession agreement that was recently finalised by the shipping ministry. The feasibility report has been prepared internally, while the incumbent concessionaire will design, build, finance and operate the facility. The new terminal is expected to bolster coal trade at the port that currently account's for 15 per cent of the total traffic.
MPT will also appoint a transaction advisor by May-end, in keeping with new guidelines of the finance ministry. The advisor will provide financial services and expedite the culmination of the concession agreement. As part of the new model concession agreement, the tariff will be finalized in consultation with the Tariff Authority of Major Ports, and will be fixed before signing the concession agreement.
Discussing the details, the official said that the new terminal will come in place of the existing Berth No.7 - a 50-year old berth that has a draft of only 3.5m and is used for iron ore exports. The new terminal will be about 130m in front of the present berth and the water area behind will be reclaimed. The terminal is expected to handle ships of up to 1,75,000 dwt. Entities like Adani Group, Tata Group, MSPL, Gammon India and Zoom Developers have already expressed interest in developing the coal terminal.
Commenting on the early days of the project, the official said that several options like iron ore export terminal and mixed cargo terminal were considered before the coal import terminal was finalized. Coal imports at MPT have more than doubled from 2.52 million tonnes in 2002-03 to 5.29 million tonnes in 2007-08.
The new coal terminal is part of the four major developmental projects that Mormugao Port Trust plans to takes up in the 11th Plan. The port has also made significant pre-project progress on the remaining three initiatives - Vasco Bay development, Baina Bay project and the West of Breakwater project. MPT handled 35.13 million tonnes of cargo in 2006-07, up 2.6 per from 34.24 million tonnes in 2006-07. Exports of iron ore currently account for nearly 80 per cent of the port's total traffic. (See table.)