Essar to develop & operate 3 iron ore berths at Vizag

Dec 16, 2013, 1:56PM EST
Three iron ore berths to be developed by Essar will add 23 MMTPA to its combined capacity enhancing it to 77 MMTPA

Essar Vizag Terminals Ltd., a wholly owned subsidiary of the Essar Ports Ltd., has entered into a concessional agreement with Visakhapatnam Port Trust for development and operations of three iron ore berths at Visakhapatnam Port on Build Operate and Transfer (BOT) basis for a period of 30 years. These three berths, two being outer harbor berths and one inner harbor berth, will have a combined capacity of 23 million metric tons per annum (MMTPA).

The concession agreement was signed at a ceremony in Chennai in the presence of G K Vasan, the Union Minister of Shipping and Dr. Vishwapati Trivedi, Secretary, Ministry of Shipping and R P S Kahlon, Chairman, Visakhapatnam Port Trust.

According to the agreement the project will be developed at a cost of US$ 200 million over a period of three years. Essar Ports will take over the two outer harbor berths soon and the operation and up gradation of the terminal will take place simultaneously. Vishakhapatnam port handled 12.3 million tons of iron ore during FY13 and this traffic is readily available for these berths from commencement. 

Commenting on the agreement, Rajiv Agarwal, Managing Director of Essar Ports, stated: “We will develop the terminal to create one of the most competitive, modernized, world class facilities. This project will significantly increase our third party cargo handling capacity and also boost our presence in the east coast. Iron ore export traffic at Vizag will increase substantially due to the competitiveness of this terminal which will facilitate industrial growth in the region.”

This project will increase Essar Ports’ total capacity for iron ore export on the east coast to 39 MMTPA with 4 highly mechanized iron ore berths (three in Visakhapatnam Port and one in Paradip Port). 

Essar Ports Ltd. is one of the largest port companies of India and is part of the US$ 39-billion Essar Group. The group is a multinational corporation with investments in steel, energy, infrastructure and services and operates in more than 25 countries, employing over 73,000 people.

Essar Port’s current capacity of 104 MMTPA is being ramped up to 181 MMTPA over the next few years. It has three operational terminals at Hazira, Vadinar and Paradip. Hazira terminal is an all-weather, deep-draft terminal with 30 MMTPA of dry bulk and break bulk cargo handling capacity. Vadinar is also an all-weather, deep-draft terminal with 58 MMTPA of liquid cargo handling capacity. Paradip dry bulk terminal was commissioned in December 2012 and is an all-weather, deep-draft terminal with 16 MMTPA of dry bulk cargo handling capacity.

During FY2013 driven by captive cargo growth comprising a total 98 per cent of the entire throughput at its ports and terminals, Essar Ports Ltd had achieved a five-fold jump in net profit amounting to $ 100.3 million for the year 2012-2013. The cargo handled during this period recorded its highest ever quantum touched an all time high of 54.52 million tonnes during FY2013 as against 43.23 million tonnes in the previous year.         

Essar Ports is also currently developing a coal terminal at Paradip of 14 MMTPA capacity and a dry bulk terminal at Salaya of 20 MMTPA capacity. Additionally, the Company also has plans to expand its Hazira capacity by 20 MMTPA – taking the Hazira Terminal capacity to 50 MMTPA. With this new project at Visakhapatnam port, Essar Ports capacity under construction will increase by 23MMTPA, taking the total under construction capacity to 77MMTPA.


 


 
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