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Need for a Port at Gopalpur
 
Spillover Traffic
Vishakhapatnam & Paradip together handle around 94.9 million (Paradip Traffic 2005-06, 56.38 MT) of traffic. It is expected that in the coming years the total cargo traffic generated by the hinterland could become double or even triple for the various growth rates assumed, as in the table below"
 

Growth Rate

Present Traffic (2006-07)

Traffic in Year

FY10    FY15   FY20   FY25

7%
8%
9%
10%

95
95
95
95

116
120
123
126
163
176
189
203
229
258
291
328
321
379
448
528
 
Even with the modest growth rate of 7% (estimated to be the GDP growth rate), the hinterland traffic will grow to a volume of 163 million tones in the FY-15. Further, considering the growth in hinterland cargo due to the rapid industrialization especially in the steel and power sector, the cargo build up is expected to grow at a much higher rate than moderate 7%. As the major ports are facing limitations on water front and storage area, their expansion is expected to take longer time (land availability) and will be costlier (rehabilitation). Hence the new ports, both the captive and multi-user are a necessity to handle the huge expected cargo growth in the hinterland.
 
Technically superior site location
Site for Gopalpur Port is technically a better site to build a multi handling port than the other sites in competition for minor private ports. At Gopalpur site, the 10 m contour line just falls at around 500 m from the shore line. There is minimal dredging requirement and being a new port it can offer better services by installing the latest equipment and setting up the most robust material handling agreements.
 
Global Steel Cycle
Globally, steel prices are at a high level. There are three major steel markets in the world; the US or the American Continent, Europe and Far Asia that is China-Japan. Currently, all these three markets are consuming a lot of steel and there is very good demand, hence prices are very high. China, which is a major producer and consumer, is also a net exporter of steel. The sudden increase in demand of steel in China is not only fueled by the Beijing Olympics scheduled for 2008, but also because of the rapid industrialization in China. Currently there are numerous small local steel companies in China, and it appears that the Chinese steel industry is ripe for a consolidation phase. After Beijing Olympics in 2008, there are prospects of a slow down in the industry especially in China.
 
I-maritime estimates that India will continue to attract various promoters from all over the world as it has got sufficient iron ore mines which are yet to be tapped and have the capacity to fulfill the global demand. Moreover, in India, the per capita, is slated to grow in near future.
 
Even if there is a slow down globally, India's growth alone is expected to create huge demand at least for the next decade fueling huge capacity creation in the country. Orissa could play a major role as India's largest iron ore reserves are in the state and most of the steel capacities are coming in the state only. Steel capacities will not only fuel the consumption but also import/export of raw materials/finished products. This makes strong business case for an additional port in the Eastern coastline apart from Paradip, Vishakhapatnam and Haldia.
 
Strong and Differentiated Promoters
Sara International is a renowned trader globally and has its own captive cargo. This will provide assured traffic to the Gopalpur Port. It is possible for them to provide door to door service (bulk logistics play) at better rates than other players.
 
Orissa stevedores Ltd. is renowned port stervedores and has a presence in nearly all the ports of East coast of India. As they are already in the port operations (stevedoring and handling) business, they are expected to be aware of the real needs of the port users and hence address the same. They have the expertise and skills to do the stevedoring operation in an efficient way and also capable of handling the port operations.
 
 
 
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