AM/NS India Secures Paradip Port Captive Berth Deal.

ArcelorMittal Nippon Steel India Ltd (AM/NS India), a joint venture between two of the world's leading steelmakers, has successfully secured the rights to mechanize and operate the CQ-III berth at the state-owned Paradip Port. The deal, which involves an investment of ₹451 crore, grants AM/NS India captive handling rights for 10 million tonnes (mt) of dry bulk cargo for a period of 30 years, according to multiple sources.

This strategic win is crucial for AM/NS India, as the berth will facilitate the efficient shipping of raw materials into and finished goods out of its expanded pellet plant, which is adjacent to the eastern coast port. To secure the contract, AM/NS India committed to share ₹62.20 per metric tonne of cargo handled at the berth, a higher bid than the port authority's reserve price of ₹54 per metric tonne. The contract was finalized under the 'Policy for award of waterfront and associated land to port dependent industries in major ports.'

The CQ-III berth was previously operated by Essar Ports for 15 years and became part of AM/NS India's assets following its 2022 acquisition of certain port, power, and logistics infrastructure from the Essar Group. That significant $2.05 billion (approximately ₹16,500 crore) acquisition integrated key assets intrinsic to AM/NS India's Hazira steel plant, including a 25 mt captive port, a 270 MW power plant at Hazira, a 16 mt deep draft terminal at Visakhapatnam Port with an integrated conveyor, and the deep-water jetty at Paradip Port. The 2022 deal also included a 515 MW gas-based power plant and land for future expansion at Hazira.

These acquired assets are critical for strengthening the strategic integration of AM/NS India's manufacturing and logistics chain, ensuring seamless connectivity and supply chain security for the movement of raw materials and finished goods across its facilities in western, eastern, and southern India, as well as for exports. The company anticipates further synergies from increased throughput at these port assets as it moves forward with its planned expansion of steel production capacity.

The recent expiry of the original CQ-III contract led the Paradip Port Authority to invite bids under the public-private-partnership (PPP) model, utilizing the captive policy. With the acquisition of Essar's steel assets, AM/NS India has already doubled the capacity of its pellet plant at Paradip to 12 mt. The steelmaker's ₹451 crore investment will be used to revamp the berth front and upgrade the ship loader, enhancing berth productivity to cater to the increased capacity of its Paradip pellet plant.