Essar Ports Announces Rs 750 cr Investment to Increase Capacity of Its Hazira Port to 50 MTPA by Dec 16

Essar Ports Announces Rs 750 cr Investment to Increase Capacity of Its Hazira Port to 50 MTPA by Dec 16

In what will increase the capacity of the Hazira terminal from the existing 30 million metric tonnes per annum (MMTPA) to 50 MMTPA, Essar Ports has decided to expand the 550-metre berth of Essar Bulk Terminal Limited (EBTL) in Hazira by a further 1,100 metres to accommodate the steady growth in cargo throughput at the port.

30 MMTPA to 50 MMTPA expansion project – Construction in Full Swing-2

Post completion of expansion, the port will have capability of simultaneously handling 7 vessels at any point of time, the company said on Monday.

The expansion will cost Essar Bulk Terminal Rs 750 crore which along with the existing investment of Rs 2,450 crores will take the total investment in Hazira port to Rs 3,200 crores.

Port and storage yard facility

Commenting on the development, Capt. S Das, CEO-EBTL, said: “The Hazira Terminal has been integral to fulfilling the cargo handling requirement of Essar Steel plant. The expanded terminal will not only help us service the enhanced requirements of our anchor customer, but also cater to our growing volumes of third-party cargo.”

30 MMTPA to 50 MMTPA expansion project – Construction in Full Swing-1

“EBTL has huge potential and is moving in the right direction to unlock that potential. Its performance in the last one year has been extremely heartening. I have no doubt that the expansion project will help the company scale new heights,” Mr Rajiv Agarwal, CEO & Managing Director, Essar Ports Limited, said.

Essar Bulk Terminal Hazira capacity set to expand by 67% to 50 MMTPA
·         Work on 1,100 m berth in full swing; to be completed by December 2016

·         Expansion project to come up at an investment of Rs 750 crores.

·         Existing investment of Rs 2,450 crores to take the total investment in Hazira port to Rs 3,200 crores

·         Post expansion, cargo handling capacity to increase to 50 MMTPA from existing 30 MMTPA.

·        80% increase in traffic in Q1 FY17 to 4.4 MMT, as against 2.4 MMT in the corresponding quarter in the previous fiscal.

·        Cargo handling at port is expected to reach 24 MMT in FY17

The Company has already invested in creating an All-weather mechanized deep draft port which is capable of handling cape size vessels. The port has a draft of 14 m which allows direct berthing of largest of bulk cargo carriers.

The Company has dredged 8.8km long channel in the river Tapi by dredging approx. 80 million cubic metres till date which is one of the largest dredging activities in the country.

In the quarter ending 30 June 2016, traffic at the port increased by 80% to 4.4 million metric tonnes (MMT) as against 2.4 MMT in the corresponding quarter of previous year. The cargo growth is backed by ramp up of operations by Essar steel plant. The total port traffic is expected to reach 24 MMT in FY17 as against 12.7 MMT in FY16.

EBTL has also received permission from the Gujarat Maritime Board (GMB) to handle 15 MMT of third-party cargo over three years. Third-party traffic of 0.75 MMT was handled in FY16 which is expected to grow to 5 MMTPA by FY18.

About Essar Ports

Essar Ports is one of the largest port companies of India, with a current capacity of 140 MMTPA. The capacity is being expanded to 194 MMTPA over the next few years. Essar Port’s five operational port terminals at Hazira, Vadinar, Paradip, Salaya and Vizag Iron Ore are estimated to handle approximately 80 MMT of cargo during FY17.

The Hazira port is an all-weather, deep-draft port with 30 MMTPA of dry bulk and break bulk cargo handling capacity.

Vadinar is also an all-weather, deep-draft port with 58 MMTPA of liquid cargo handling capacity.

The Paradip dry bulk terminal was commissioned in December 2012 and is an all-weather, deep-draft port with 16 MMTPA of dry bulk cargo handling capacity.

The Vizag terminal is an operational berth taken over in May 2015 having capacity of 16 MMTPA. The Company’s newly commissioned dry bulk terminal at Salaya has increased its capacity by further 20 MMTPA.

Additionally, the Company is also expanding its Hazira port capacity by 20 MMTPA – taking Hazira capacity to 50 MMTPA.

The Company is also undertaking capacity addition of iron ore berths at Visakhapatnam Port with a total capacity of 16 MMTPA. The Company also plans to develop a coal terminal at Paradip of 18 MMTPA capacity.

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