The Gopalpur minor port in Ganjam district of Orissa has been revived again by a consortium headed by Orissa Stevedores Limited and a ship is being handled at the anchorage. The consortium has major plans for developing the port into an all-weather facility in four years, capable of handling 20 million tonnes per annum by 2012.

The two other members of the consortium are Sara International Limited and Noble Group Limited. Mr D. P Singh, Chairman of Gopalpur Ports Limited, says the port was handed over to the consortium by the Orissa Government in poor condition a few months ago, with four barges and a tug. "In months, we have revived the port and now a 50,000-tonne vessel is being handled at the anchorage, with the loading rate being more than 5,000 tonnes a day. This port in the past could never do more than 2,500 tonnes a day. We have so far invested Rs 70 crore or so and completed the first phase. The anchorage port is operational," Mr Singh said

Ilmenite sand is being loaded into the vessel at Gopalpur anchorage and the cargo belongs to Indian RareEarths Limited whose premises are adjacent the port.

According to Mr. Singh, Rs 1,700 crore will be pumped into the project over the next four years, with the consortium members contributing Rs 450 crore in the form of equity. The rest will be raised from the financial institutions. The port will initially have six berths, and "at least 6-7 million tonnes of cargo is assured. We have no problem on that count."

Asked how the port will survive in the competitive environment, located as it is between Visakhapatnam (the No 1 port in the country) and Paradip, another major port, Mr Singh said that some 60-65 million tonnes of cargo originated from Orissa. "It is bound to double in a matter of few years. Posco is setting up a steel plant. The Orissa Government has signed several MoUs with several companies in the mineral-rich State. Even if some of the projects come up, there will be a economic boom in the hinterland. The Gopalpur port will be competitive and it will present a viable option to many of these industries," he explained.

Mr Singh said financial closure may be achieved by June and the port was also going for private placement to dilute some of the equity.

Referring to the logistics, Mr M. N. Mishra, of the Orissa Stevedores Limited, said the railway siding (connecting Indian Rare Earths Limited) right beside the port was a great advantage.

Besides, "if a railway line could be laid between Gunupur and Theruballi at a cost of Rs 400 crore, the port could be connected to the alumina zone. We have initiated discussions with the Rail Vikas Nigam Limited for the purpose and there is a clear commitment from Dubal for achieving financial closure for the line."

He said the consortium had worked hard the past few months to revive the port and there had been good co-operation from the Orissa Government too. "They have given us 620 acres and promised us 1400 acres more. These 1400 acres will be demined area from the Indian Rare Earths Limited. We will put it to good use. We are contemplating a special economic zone."

Mr Mishra said the Tatas were also planning an SEZ in the vicinity of Gopalpur on 2,000 acres. "All this augurs well for the port. We are confident of making it a good, efficient port which will assist in the economic growth of Orissa."

He said the port had arrived at revenue-sharing agreement with the State Government. For the first two years, nothing need be paid and then on 1 per cent of the revenue till the tenth year. From then on, seven per cent of the revenue would have to be paid.