Essar's iron-ore handling terminal at Vizag Port boosts third party business
Post the taking over of Vishakhapatnam Port Trust’s (VPT's) Iron Ore Handling Complex (OHC) on a Build-Operate-Transfer (BOT) basis for a period of 30 years in May’ 15, Essar Vizag Terminals Limited (EVTL), a wholly owned subsidiary of Essar Ports Limited (EPL) has boosted the EPL’s strategy of diversifying its customer profile. Through addition of this facility EPL has seen its third party cargo share jump to more than 8% in FY 16 alone with the likes of JSW, NMDC/ MMTC etc. Once upgraded the mechanized system will be able to reach a capacity of 8000TPH, which will be one of the highest cargo-handling rate in Indian Major Ports.
During QI FY 17, EVTL handled 2.19 MT (29 Vessels) of Cargo as against 0.31 MT (06 Vessels) in Q1 of FY16 on the backdrop of improving Indian Steel Sector performance and Project upgradation works. EVTL is now operating with a net average loading rate of 3000 TPH as against <1000 TPH during Q1 of FY16 and is targeting to achieve 4000 TPH by Q2 of FY 17 along with simultaneous project upgradation.
Essar’s Iron-Ore Handling Terminal at Vizag Port is an all-weather deep draft facility that has the wherewithal to serve the rapidly growing markets of South-East Asia, including China, Japan, and Korea. It can accommodate super capesize vessels and has dedicated rail-connectivity with Bacheli & Kirandal Mining sources by which the facility has an advantage to serve western-sector of India. It is also integrated with its Essar Steel (pellet plant) in Vizag through a fully mechanized conveying facility with 6.7 km shipping conveyor system.
As the bi-lateral agreement between MMTC and Japanese and South Korean steel mills for supply of high grade Indian iron ore during the three year period from April 2015 to March 2018 is finalized and mandates for shipment of 3.8 MMTPA to 5.5 MMTPA. EVTL, is upbeat for catering to these requirements. The agreement stipulates for supplying up to 16.5 MMT of high grade iron ore to steel plants in Japan and South Korea over three years till March 2018. With the production of Essar steel also expected to increase significantly during FY 17, the total cargo handling at Vizag is expected to double as compared to FY 16. The integrated customer i.e. EStIL has improved their performance by 121% growth in Q1 FY 17 as against Q1 FY 16 which is also facilitating the surge in traffic at the Ore Handling Complex
Essar Ports expects enhanced Capacity Utilization during FY 17 and cargo handling to increase from 59 MMT in FY 2016 to 85 MMT in FY 2017, thereby registering a growth of more than 40% on year on year basis with third party cargo business to increase to more than 14% in FY 2017.
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 Ports has five operational port terminals at Hazira, Vadinar, Paradip, Salaya and Vizag Iron Ore and are estimated to handle approximately 85 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 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.