Essar to Double Vizag Port’s Iron Ore Handling Capacity

Business & Finance

Essar Ports, India’s second-largest private port operator, informed that its Rs 830-crore (around USD 127.9 million) expansion plan to upgrade the iron ore handling capacity of the Vizag Terminal (outer harbor) from 12.5 MMTPA to 23 MMTPA is nearing completion.

Once completed, the upgraded terminal will have a loading rate of 8,000 TPH (tons per hour), which will be among the highest for an Indian port.

As explained, the loading capacity will increase to 120,000 TPD and the facility will be able to berth vessels up to 200,000 dwt, with a draft of 18 meters on the outer harbor.

Essar Vizag Terminals Limited (EVTL) took over the project in May 2015 on a Design-Build-Finance-Operate-Transfer (DBFOT) basis for a period of 30 years. Since then, the company has ramped up the iron ore loading capacity of the terminal from 25,000 to 70,000 TPD.

“The facility is one of a kind in India with a state-of-the-art mechanised system, and one of the highest loading rates (8,000 TPH). It has significant potential to increase our share of third-party cargo business to more than 40%. As a result of the enhanced performance parameters, exporters on the east coast will benefit immensely from shorter turnaround times, which will translate into competitive freight costs,” Rajiv Agarwal, Managing Director, Essar Ports, noted.

“We aim to be the preferred choice of exporters in eastern India,” CH Satyanand, CEO, Essar Vizag Port, said.

“The communities around the facility will benefit from the upgrade of the technology stack at the port. We are determined to cut down spillage and emissions to virtually near-zero levels,” Satyanand added.