New Mangalore port to build additional bitumen tanks

Construction is under way of storage tanks and associated facilities at New Mangalore port on India's west coast to boost efficiency in the delivery of bitumen and edible oil cargoes.

India's prime minister Narendra Modi laid the foundation stone for the construction of these tanks on 2 September as part of five projects worth 10bn rupees ($125mn) being carried by the New Mangalore Port Authority, according to the federal government. The initiative is aimed at boosting the overall turnaround time of vessels arriving from the Middle East and other regions to New Mangalore.

New Mangalore is a key Indian port for bulk bitumen imports. The country is net short of the road paving material and typically ships bitumen from the Middle East.

Indian demand for bitumen has been weak since April as road paving projects slowed because of payment delays. This was followed by the monsoon season that also capped imports because of reduced roading projects. But consumption is expected to increase from the end of September and early October with the end of the monsoon. Trading firms have started to buy cargoes in expectation of the increased demand.

At least two bitumen carrying bulk vessels were due to discharge cargoes at Mangalore on 6 September, according to the Mangalore port authority's daily vessel position data.

By Sathya Narayanan