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The Deendayal Port Authority, which operates the Kandla port in Gujarat, is set to float a tender for the construction of three new oil jetties under a public-private partnership (PPP) model, with an estimated investment of ?632 crore. This initiative aims to enhance the ports liquid cargo handling capacity, according to Deputy Chairman Nandeesh Shukla.
Shukla confirmed the government’s approval for the development of oil jetties 9, 10, and 11 and stated that the tender would be issued shortly. These jetties will be located near areas designated for green hydrogen plant development. Shukla expressed optimism that companies involved in green hydrogen projects might consider using these jetties for future bunkering of green fuels, given their substantial investments.
In August, the Ministry of Ports, Shipping and Waterways approved the proposal to develop these oil jetties, which will facilitate all types of liquid cargo at Old Kandla. This project is expected to significantly bolster India’s liquid cargo handling capabilities.
Currently, Deendayal Port has seven oil jetties, with five operated by the port authority and one each by Indian Oil Corporation and IFFCO. The upcoming Oil Jetty 8 is projected to be completed soon, increasing the total capacity of oil jetties at the port to 16.32 million tonnes (mt), with an aim to reach 23.49 mt by FY35. This expansion is critical, as projected liquid cargo traffic is expected to reach 40.4 mt, creating a demand-supply gap of 2.45 mt by FY25 and 16.91 mt by FY35.
The new jetties will each have a capacity to handle 3.2 mt of liquid cargo, excluding crude oil. Port officials noted that constructing oil jetties with private funding is a lucrative venture, especially given the rising interest from green hydrogen and green ammonia companies in the region.
The under-construction Oil Jetty 8, with a revised cost of ?225.85 crore, is crucial for the future jetties. Shukla indicated that the port authority is managing significant infrastructure work, including pipeline trestles, to facilitate the development of the new jetties, allowing private investors to focus on completing their segments of the project.
Jetties 9 and 10 will not have storage facilities, while Jetty 11 will feature a storage capacity of 130,132 kilolitres. The project has already received environmental clearance, and the necessary land is secured, with dredging work and other critical infrastructure funded by the port authority. |
