Mumbai: Essar Ports (EPL) has taken over the iron ore handling complex at Visakhapatnam port on a 30-year build-operate-transfer lease.
Essar Vizag Terminals Ltd. (EVTL), a wholly owned subsidiary of EPL, will operate three berths, two in the outer harbour and one in the inner harbour, with a combined capacity of 23m tonnes per annum, to be developed in two phases over a period of three years, at a total cost of INR12bn ($188m).
The first phase covers the upgradation of the outer harbour berths (OB-I and II), while the second phase will see mechanisation of the inner harbour berth (WQ-I). With the takeover of the outer berths, the operation and upgradation of the terminal will be carried out simultaneously.
“The facility is well placed to cater to both the domestic and international steel Industry,” said EPL’s ceo and managing director Rajiv Agarwal. “It will serve major iron ore consuming countries like China, Japan and 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 Ports’ total east-coast iron ore handling capacity to 39m tonnes per annum.”