After a severe delay, the project to build an iron ore handling berth at Paradip Port has been given environmental clearance. However, the Hong Kong-based Noble group, which was awarded the concession three years ago, is said to be reconsidering its proposed investment in what will be a 10mt (million tonne) capacity facility. Given the fall in global demand for iron ore, plus a 30% rise in the project cost $244 million, the proposed facilities the longer as attractive as it once was. Should the iron ore berth not go ahead, this will cause a problem for the Essar group, which has a concession for an adjacent 10mt capacity coal berth.This is because dredging across both berths could be done considerably cheaper and if the iron ore berth is not built, this will is have the effect of disrupting the implementation timetable for the coal handling facility.
BC