AM/NS India has secured a 30-year concession to manage the CQ-III berth at Paradip Port. The company will invest ₹451 crore to build a mechanized conveyor system for transporting iron ore pellets. This captive infrastructure is designed to reduce logistics bottlenecks and improve supply chain control for the steel producer.
AM/NS India, a joint venture between ArcelorMittal and Nippon Steel, has been awarded a 30-year concession by the Paradip Port Authority to develop and operate the CQ-III berth. This agreement allows the steel producer to manage the terminal on a captive basis, meaning it will have exclusive access to handle its own cargo without competing with third-party operators at this specific facility. The formal award was presented on August 21, 2026, by the Union Minister for Ports, Shipping and Waterways.
Boosting Logistics Efficiency
The core of this project is a fully-mechanized conveyor system. By building this link, AM/NS India aims to create a direct path between its iron ore pellet plant and the port. Previously, transporting raw materials relied on external logistics chains, which can lead to delays or increased costs. By controlling the maritime interface, the company expects to streamline the flow of iron ore pellets to its steel manufacturing facility at Hazira. The project has a capacity of 10 million tonnes per annum, which is significant for maintaining a steady supply of raw materials needed for steel production.
Investment and Operational Strategy
The company has committed to an estimated investment of ₹451 crore for this infrastructure. This spending is part of a broader strategy to modernize logistics. In the steel industry, controlling the supply chain is a key business advantage because it helps stabilize costs and ensures that production lines do not run out of raw materials. This setup aligns with government goals to promote more sustainable and fuel-efficient transport methods, such as coastal shipping, which often has a lower carbon footprint than road or rail transport for bulk commodities.
Context and Risks
It is important to note that AM/NS India is a private joint venture and is not a publicly listed company on the stock exchanges. Therefore, there is no direct stock market reaction to this news for individual investors. From a business perspective, while the captive berth provides a strategic advantage, large-scale infrastructure projects of this nature carry execution risks. Delays in construction or commissioning could affect the projected benefits. Additionally, the steel sector is capital-intensive and sensitive to global demand cycles, which can impact the profitability of steel makers. Regulatory and compliance standards regarding environmental clearances at port facilities remain a monitorable factor for such long-term projects.