Essar Shipping, Ports & Logistics (ESPLL) is planning to set up ports in Brazil, China and Vietnam to provide integrated support for its steel and power generation businesses there. Apart from catering to its own requirements, these ports will offer their services to other players, for better commercial viability. The Ruias-promoted company may talk to potential JV partners to take the project forward. ESPLL managing director Sanjay Mehta said: ”To achieve geographical spread for our businesses, the company is planning to set up ports in countries where Essar group already has businesses. As part of Essar’s global strategy, the company is looking at countries like China, Vietnam and Brazil.” Apart from India and the US, Essar has a steel plant in Indonesia with a 400,000-tonne cold-rolling facility and a 1,50,000-tonne galvanising facility. The company is also putting up greenfield projects in Vietnam with an annual capacity of two million tonnes.
ESPLL is also planning to build an integrated terminal facility at Salaya in Gujarat for handling coal and pet coke used in power plants. At Hazira, Essar is constructing an all-weather deep-draft port capable of handling up to 1,05,000 dwt bulk carriers to import iron ore, pellets, coal, limestone etc and export finished steel products.
“There is growing importance for non-major ports owing to capacity constraints at major ports. Thus, we are looking for an option in the eastern coast to set up a port and a container terminal,” added Mr Mehta. ESPLL has also revealed plans to invest over Rs 10,000 crore over the next three years. It is planning to add 14 ships to its existing fleet of 24 vessels by 2011.
At present, the company owns 24 vessels with a diverse fleet comprising very large crude Carriers, Suezmax tankers, product tankers, bulk carriers, mini bulk carriers, Handymax, tugs and barges making up almost 14% of the country’s shipping fleet.
ESPLL is also planning to build an integrated terminal facility at Salaya in Gujarat for handling coal and pet coke used in power plants. At Hazira, Essar is constructing an all-weather deep-draft port capable of handling up to 1,05,000 dwt bulk carriers to import iron ore, pellets, coal, limestone etc and export finished steel products.
“There is growing importance for non-major ports owing to capacity constraints at major ports. Thus, we are looking for an option in the eastern coast to set up a port and a container terminal,” added Mr Mehta. ESPLL has also revealed plans to invest over Rs 10,000 crore over the next three years. It is planning to add 14 ships to its existing fleet of 24 vessels by 2011.
At present, the company owns 24 vessels with a diverse fleet comprising very large crude Carriers, Suezmax tankers, product tankers, bulk carriers, mini bulk carriers, Handymax, tugs and barges making up almost 14% of the country’s shipping fleet.