+
Odisha compensates MSC $200/box for Paradip Port volume shortfall
PORTS & SHIPPING

Odisha compensates MSC $200/box for Paradip Port volume shortfall

In a pioneering initiative aimed at attracting container lines and facilitating trade, the Odisha government, led by Naveen Patnaik, has agreed to provide viability gap funding (VGF) to the Mediterranean Shipping Company S.A. (MSC), the world's largest container line. Under this scheme, if the export-import volumes during a ship call at Paradip Port fall below the minimum guaranteed level of 250 twenty-foot equivalent units (TEUs), the state government will compensate MSC with $ 200 per TEU.

A TEU is the standard size of a container, commonly used to measure capacity in the container business.

According to a senior official from the Odisha government, "If MSC manages to load/unload 250 TEUs during a call at Paradip Port, then no payment is required. However, for any shortfall below 250 TEUs, such as if the ship loads/unloads 230 TEUs, the state government will compensate the line through viability gap funding of $ 200 per TEU."

The agreement, initiated on 16 February, was formalised through a memorandum of understanding between Geneva-based MSC and the Odisha government.

The objective is to revitalise Paradip Port. The state government aims to reduce dependence on Visakhapatnam and Kolkata Ports for transporting export-import cargo, which is currently expensive. The official emphasised the importance of utilizing Paradip's deep draft port and enhancing trade opportunities.

Notably, the Odisha government is offering incentives to a container line to initiate services from Paradip, one of the 12 major ports owned by the Union government, making this effort unique. Despite previous unsuccessful attempts by the Paradip Port Authority to engage container lines for EXIM services, the government remains committed to making Paradip Port a vibrant hub. In 2020, Regional Container Lines (RCL) initiated a service from Paradip Port, but it was discontinued after a few calls.

In a pioneering initiative aimed at attracting container lines and facilitating trade, the Odisha government, led by Naveen Patnaik, has agreed to provide viability gap funding (VGF) to the Mediterranean Shipping Company S.A. (MSC), the world's largest container line. Under this scheme, if the export-import volumes during a ship call at Paradip Port fall below the minimum guaranteed level of 250 twenty-foot equivalent units (TEUs), the state government will compensate MSC with $ 200 per TEU. A TEU is the standard size of a container, commonly used to measure capacity in the container business. According to a senior official from the Odisha government, If MSC manages to load/unload 250 TEUs during a call at Paradip Port, then no payment is required. However, for any shortfall below 250 TEUs, such as if the ship loads/unloads 230 TEUs, the state government will compensate the line through viability gap funding of $ 200 per TEU. The agreement, initiated on 16 February, was formalised through a memorandum of understanding between Geneva-based MSC and the Odisha government. The objective is to revitalise Paradip Port. The state government aims to reduce dependence on Visakhapatnam and Kolkata Ports for transporting export-import cargo, which is currently expensive. The official emphasised the importance of utilizing Paradip's deep draft port and enhancing trade opportunities. Notably, the Odisha government is offering incentives to a container line to initiate services from Paradip, one of the 12 major ports owned by the Union government, making this effort unique. Despite previous unsuccessful attempts by the Paradip Port Authority to engage container lines for EXIM services, the government remains committed to making Paradip Port a vibrant hub. In 2020, Regional Container Lines (RCL) initiated a service from Paradip Port, but it was discontinued after a few calls.

Next Story
Real Estate

Shriram Properties Launches ‘Codename: The One’ in Bengaluru

Shriram Properties (SPL), a leading real estate developer focused on the mid-market and mid-premium segments, has announced the launch of its latest residential project under the banner “Codename: The One” in Bengaluru’s Electronic City corridor. This feature-rich gated community will offer 340 spacious 2- and 3-BHK residences, with a total saleable area of approximately 5 lakh square feet and an estimated revenue potential of over Rs 3.5 billion. The project is expected to be developed over a span of more than three years.  Strategically located near the Bommasandra Metro stat..

Next Story
Resources

India Warehousing Show 2025 Closes with Strong Global Presence

The 14th edition of the India Warehousing Show (IWS) 2025 concluded successfully at Yashobhoomi (IICC), Dwarka, drawing participation from over 300 exhibitors across 15 countries and welcoming 15,000+ visitors. Recognised as India’s leading platform for warehousing and logistics excellence, IWS 2025 offered a comprehensive display of cutting-edge automation, sustainable warehousing solutions, and next-gen supply chain technologies. The show was inaugurated by Shri Pankaj Kumar, Joint Secretary – Logistics, DPIIT, Ministry of Commerce and Industry, Government of India. In his opening a..

Next Story
Equipment

MHIET Launches 450kW Gas Cogeneration System with H₂ Co-Firing

Mitsubishi Heavy Industries Engine & Turbocharger (MHIET), part of the Mitsubishi Heavy Industries Group, has launched a new 450kW gas cogeneration system, the SGP M450, jointly developed with Toho Gas Co.,. The system supports hydrogen co-firing at up to 15 vol per cent, with no loss in performance or reliability.  The system is currently available in the Japanese market, and has been developed from the existing GS6R2 city gas engine platform. Key modifications were made to the fuel gas and engine control systems to enable hydrogen co-firing.   Verified through de..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?