Essar Bulk Terminal Hazira Capacity set to expand by 67% to 50 Mt/a

Bulk Terminal Expansion

Essar Bulk Terminal Hazira Capacity set to expand by 67% to 50 Mt/a

The 550 m berth of Essar Bulk Terminal Limited (EBTL) in Hazira is being expanded by a further 1100 m to accommodate the steady growth in cargo throughput at the port. With the expansion, the capacity of the Hazira terminal will increase from the existing 30 to 50 Mt/a. Post completion of expansion, the port will have capability of simultaneously handling seven vessels at any point of time.
(ed. WoMaMarcel - 28/7/2016)
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With the latest expansion project, the capacity of EBTL’s Hazira terminal will increase from 30 to 50 Mt/a.

Mumbai, India – Essar Bulk Terminal is investing INR 750 crore in the expansion project, which along with the existing investment of INR 2450 crore (approx. USD 365 million), will take the total investment in Hazira port to INR 3200 crore (approx. USD 476 million).

The company has already invested in creating an all-weather mechanised deep draft port, which is capable of handling capesize vessels. The port has a draft of 14 m, which allows direct berthing of the largest of bulk cargo carriers. The company has dredged an 8.8 km channel on the Tapi river. Approx. 80 Mm3 has been dredged until date, making it 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 Mt, as against 2.4 Mt in the corresponding quarter of the previous year. The cargo growth is backed by a ramp-up in operations by Essar Steel’s 10 Mt plant in Hazira. The total port traffic is expected to reach 24 Mt in fiscal year 2017, as against 12.7 Mt in fiscal year 2016.

EBTL has also received permission from the Gujarat Maritime Board (GMB) to handle 15 Mt of third-party cargo over three years. In fiscal year 2016, 0.75 Mt of third-party traffic was handled. This is expected to grow to 5 Mt by fiscal year 2018.

Commenting on the development, Capt. S. Das, CEO of 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.”

Mr Rajiv Agarwal, CEO & Managing Director of Essar Ports Limited, said: “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.”

About Essar Ports

Essar Ports is one of the largest port companies of India, with a current capacity of 140 Mt/a. The capacity is being expanded to 194 Mt/a 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 approx. 80 Mt of cargo during fiscal year 2017.

The Hazira port is an all-weather, deep-draft port with 30 Mt/a of dry bulk and break bulk cargo handling capacity. Vadinar is also an all-weather, deep-draft port with 58 Mt per year 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 Mt/a of dry bulk cargo handling capacity. The Vizag terminal is an operational berth taken over in May 2015 having capacity of 16 Mt/a. The Company’s newly commissioned dry bulk terminal at Salaya has increased its capacity by further 20 Mt/a.

Additionally, the Company is also expanding its Hazira port capacity by 20 Mt/a – taking Hazira capacity to 50 Mt/a  The Company is also undertaking capacity addition of iron ore berths at Visakhapatnam Port with a total capacity of 16 Mt/a. The Company also plans to develop a coal terminal at Paradip of 18 Mt/a capacity.

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