Korean steel major POSCO will invest $900 million to set up a dedicated port in Orissa, where it is setting up a three million tonne capacity steel plant.

The new port, to be set up at Jatadhari, seven km from the existing Paradeep port, will be part of POSCO's overall investment of $12 billion in Orissa, according to a company statement.

Through a feasibility study, POSCO found that Paradeep did not meet its requirements.

The new port will boost infrastructure development in the state and ensure timely progress of POSCO's plans in the region.

The port would be built on a Build-Operate-Transfer (BOT) basis also referred to as Build-Own-Operate-Share-Transfer (BOOST) basis.

The port will be constructed in two phases, $600 million being invested in the first and $300 million in the second.

POSCO's steel plant is expected to create 48,000 jobs in the region and provide 467,000 man-years of employment during the construction phase.