Paradip Port Leads as India’s Top Cargo Handling Hub

Context

Paradip Port in Odisha has achieved a milestone by surpassing Deendayal Port Authority in Gujarat to become India’s largest major port in terms of cargo volumes in FY24.

Key Points

• The Paradip Port is in the midst of many projects that aim at augmenting its capacity and upgrading its performance. The set of projects comprises adding new depth, breaking old conception, automating berths, lifting the capacity, and upgrading other small infrastructure.
• Environmental sustainability is being promoted by the port as it is planting trees, utilising renewable energy, and building green fueling stations.
• Furthermore to this collaboration it is also working closely with IIT, Chennai to introduce new innovation in the Vessel management and security.
• The port chairman famously commented on people well done for making the port be as successful as it is as well as recognized in maritime.

Details on the Milestone Achievement of Paradip Port

• Paradip Port has achieved a significant milestone by becoming India’s top cargo handling hub, surpassing all other major ports in the country in terms of cargo throughput.

Record-Breaking Performance

• The Port Authority of Paradip achieved a major milestone through the handling of a record-breaking coagulation rate of 145.38 million metric tons in the 2023-24 financial year.
• Therefore, year-on-year growth was at 7.4 % with the port managing 10.02 million extra tonnes of cargo in comparison with the previous year.

Operational Excellence

• The coastal shipping traffic at Paradip Port (Paradip coast shipping traffic) made an all-time high record of 59.19 MMT with a slight growth of 1.30% when compared with last year.
• Besides, there was the obvious growth of thermal coal shipping whereby it went up by 4.02%. However, the figure still remains at 43.97 MMT.

Infrastructure and Efficiency

• The most upgraded aspect of the Sea-Land Paradip port in India is the region’s profoundest berth productivity. It registered an impressive progress of 6.33% in comparison to the last year.
• Further, there was an increase in the number of ships by 13.82% and an increase in the number of rakes by the figure of 7.65%. This happened during that same period of time.

Financial Highlights

• Paradip Port has achieved strong financial performance with operating revenue exceeding Rs. 2,300 Crores and an operating surplus of over Rs. 1,510 Crores. 
• The port has decided to keep its cargo handling tariffs at the 2022 level for the next three years to remain competitive as the most cost-effective port in India.

About Paradip Port

• The paradip harbour is located in Odisha surrounded by Mahanadi river with the entrance channel to the bay of Bengal on its outskirts. It is a protected waterway through which can berth all size vessels and provides efficient bulk cargo handling.
• The well-known Port was inaugurated in 1966, as a central centre for maritime trade.
• Managed and run by the Paradip Trust, it is operated by the Paradip Port Trust.
• It is built with the latest facilities for moving all types of cargo and has very large berthing areas and equipment.
• The region’s export-import trade largely depends on it, and is accessed by road and railway transportation networks that facilitate connections to major cities and industrial centres.

Conclusion

Paradip Port’s emergence as India’s top cargo handling hub is a testament to its strategic location, operational efficiency, and commitment to growth. It plays a pivotal role in India’s maritime trade and is set to continue its upward trajectory in the coming years.

Source: The Economics Times

UPSC Mains Practice Questions

Q.Discuss the strategic significance of Paradip Port as a vital maritime hub for India’s economic growth and its role in enhancing maritime trade and connectivity in the region. Also, analyse the challenges and opportunities for further development and expansion of Paradip Port to meet the evolving demands of the global shipping industry.

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