From ndtvprofit.com
By Arijit Barman
(New Delhi)
Shell wants to build a port at its LNG terminal in Hazira by 2010. Work has already started and the multinational has asked the Gujarat government for more land.
Spread over 300 hectares of mostly reclaimed land, the terminal in Hazira was idle for a long time. But activity is scaling up and so are Shell’s plans.
“Hazira project based on port concessions from the government. At the moment Hazira port is used only for LNG cargo. We are trying very hard to make it suitable to other kinds of cargos. The investments will be substantial,” said Marc De Hartog, Director-Gas & Power, Shell India.
Shell is planning to invest Rs 1125 crore in the Hazira port. The proposed port will handle about two million containers per year. It will be connected to the Delhi-Mumbai freight corridor and golden quadrilateral. Shell is also likely to construct the rail-link from port with RITES.
Shell also wants tie-ups with other port developers and users in Gujarat, Haryana, Rajasthan and Punjab. But Gujarat says Shell is already behind schedule and investments are less than what was earlier agreed upon.
Even experts are not sure about the feasibility of all the ports that are coming up in Gujarat. There are already 14 operational ports in the state, two of which are major ones. Naturally there is a question mark on their economies of scale.
“The problem starts with bulk. There are too many guys in Gujarat and I am not sure whether its viable for setting up a port first and then try to rope in industries. Environmental issues are also a big hassle if so many private ports come up in such a small area,” said Gopal N Sarma, MD, Feedback Ventures.
Analysts say with Shell’s LNG terminal not running so successfully, with only four LNG shipments reaching Hazira this calendar year, diversification is necessary.
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