ArcelorMittal Nippon Steel India Ltd (AM/NS India) has secured a major logistics win by bagging a 30-year concession to operate the CQ-III berth at Paradip Port. This strategic move strengthens the company’s supply chain integration, particularly for its expanded pellet operations.
Key Highlights:
- Concession Win: AM/NS India to mechanise and operate CQ-III berth at Paradip Port for 30 years, dedicated to handling 10 million tonnes (mt) of dry bulk cargo.
- Revenue Sharing: The firm will pay ₹62.20 per metric tonne of cargo handled, winning the berth through a government PPP tender under the captive policy.
- Strategic Asset Use: The berth is vital for feeding the adjacent Paradip pellet plant, which now has a doubled capacity of 12 mt.
- Historical Context: CQ-III was previously operated by Essar Ports. AM/NS acquired it in 2022 as part of a $2.05 billion acquisition from the Essar Group.
- Integrated Logistics: The 2022 deal included:
- A 25 mt captive port and 270 MW power plant at Hazira
- A16 mt terminal at Visakhapatnam Port with conveyor to AM/NS pellet plant
- A deepwater jetty at Paradip with conveyor link
- A 515 MW gas-based power plant and land for expansion
- Strategic Goal: These assets support AM/NS India's integrated steel and logistics operations across India, enhancing connectivity, cost efficiency, and export capability.
- Competitive Bidding: The reserve royalty rate was based on Jindal Steel & Power’s winning ₹54/ton bid for another berth at Paradip. AM/NS bid above this, showcasing its strategic interest in the asset.