Essar Ports Acquires Vizag Port's Iron Ore Complex
Essar Ports Ltd. (EPL) today announced the taking over of Vishakhapatnam Port Trust’s (VPT) Iron Ore Handling Complex on a Build-Operate-Transfer (BOT) basis, for a period of 30 years. Essar Vizag Terminals Ltd. (EVTL), a wholly owned subsidiary of EPL, will comprise three berths (two outer harbour berths and one inner harbour berth) with a combined capacity of 23 Million Tonnes per Annum (MTPA) which will be developed in two phases.
“Enhancing the cargo handling capacity and mechanization of port facilities for efficient management is crucial for long term sustenance. We are very sure that Essar will develop the OHC facility with latest state-of art handling facilities and achieve higher loading rate thereby reducing the overall turn around by at least 50%”- M.T. Krishna Babu, Chairman, Vizag Port Trust.
The Project will be developed at a cost of Rs. 1200 Cr. over a period of three years, and will cover the upgradation of Outer Harbour Berths (OB I & II) in Phase I and mechanization of inner harbour berth (WQ-I) in Phase II. With the takeover of the outer berths, the operation and up-gradation of the terminal will be carried out simultaneously.
Commenting on the development, Rajiv Agarwal, CEO & Managing Director, Essar Ports, said: “The facility is well placed to cater to both the domestic and international steel Industry. It will serve major iron ore consuming countries like China, Japan, Korea in addition to coastal movement within India. The facility has dedicated rail connectivity to India’s iron ore mining belt. This, along with the mechanized CQ III facility in Paradip port, will take Essar Port’s total east-coast, iron ore handling capacity to 39 MTPA.”
Ch. Satyanand, CEO, EVTL, added: “It is a proud moment for us as we will now be operating the Vizag Port’s prestigious mechanized iron-ore handling complex. We expect to achieve one of the highest cargo-handling capacities across Ports in India”
EVTL has taken over the ore handling complex of the VPT by paying an upfront payment of Rs. 185 Cr, in addition, EVTL will also pay a revenue share to VPT. VPT had handled close to 14 MT of iron ore during FY 14 highest by any port in the country.