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India approves port expansion

By Kasia Patel
Published: Thursday, 01 September 2016

New berths at the port in Goa will increase dry bulk capacity for bauxite, gypsum and limestone shipments.

 PORT OF GOA India_Yorick_R via flickr
The expansion project in Goa will take up to 36 months. (Source: Yorick_R via Flickr) 
India has approved a port expansion project in Goa, which will increase the capacity for handling dry bulk industrial minerals.


The project will redevelop berths 8, 9 and the barge berth at the port of Mormugao and will cost Indian rupee (INR) 11.45bn ($245.6m).

"The project envisages the reconstruction of the old berths and replacement of 38 year old equipment by creating facilities for handling a variety of cargo like iron ore, bauxite, gypsum, limestone, fertilisers, steel coils and other general cargo," the ministry of shipping said.

The new berths will increase dry bulk handling capacity by 6.22m tpa, up to 19.22m tpa.  Ships of up to 185,000 deadweight tonnes (DWT) will be able to use the port.

Other developments will enable the movement of minerals through barges using inland waterways of the rivers Mandovi and Zuari, reducing the need for road transport.

Conveyor belts and storage areas will also be properly covered. Construction activity includes the building of berths, buildings, railway lines, dredging, reclamation of land and installation of equipment.

The development will also consume a number of industrial minerals used for manufacturing steel, cement, and building materials.

In April, the government lobbied India resource company Vendanta to expand the use of the Port of Mormugao.  

The company, via wholly owned subsidary Sterlite Ports Ltd, was awarded the expansion project for Berth 8 and 9 and Barge Berths at the port at Goa after a successful bidding process.  

The expansion project is expected to take 36 months.

BDI

In shipping, the Baltic Dry Index (BDI) was slightly firmer again this week at 711 on 31 August compared with 706 on 24 August.

Shipbrokers were optimistic due to the return of Chinese iron ore importers in the market, and restocking after drawing down on inventories.

"Continued increases in China’s daily steel output, feeding the excessive production in steel products, along with the recent restocking by Chinese steel mills that has started to take shape over the past couple of weeks has allowed for a positive trend to develop on the demand side," shipbroker Allied said.



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