Essar to expand Hazira port capacity
Jan 28th, 2019
Essar Group’s Hazira Port in Gujarat’s capacity is investing $20 million or about Rs 142.5 crore to ramp capacity to 95 million metric tonne per annum (mmtpa) by mid of this year.
The company plans to invest $70 million, or around Rs 498 crore, in two phases to increase Hazira Port’s capacity to 110 mmtpa.
“Work is going on and a major component of the expansion project will be done in March and the entire first phase is expected to be done a few months after that,” a source said.
Under the first phase, $20 million is being financed through internal accruals as well as debt. This phase includes construction of jetty.
In FY2018, Hazira Port handled 41 million tonne cargo.
The second phase would be put into works a year before saturation of port’s capacity. As per the earlier plans, the second phase was to be completed by September 2020.
At the moment, Ruias promoted Essar Ports has an operational capacity of 35 mmtpa for dry bulk and general cargo at this terminal in Gujarat. The company is also developing liquefied natural gas project at Hazira.
For the second phase of the expansion, another $50 million planned to be invested is yet to be arranged. This phase includes ship unloaders, conveyor belt system, etc.
In Gujarat, Essar Ports has another port at Salaya. Its 58-million tonne Vadinar Port was divested in 2017 along with Essar Oil to a group led by Russian oil major Rosneft for Rs 86,100 crore. For Vadinar Port the company received Rs 13,300 crore.
Last year, the cargo loading capacity at its Visakhapatnam Port facility was upgraded to handle 24 mmtpa from the earlier 12.5 mmtpa. This modernisation plan included dredging for the all-weather deep draft facility, high capacity tipplers, high capacity reclaimers, conveyor systems (9.5 km), etc at a cost of Rs 830 crore.
- The company plans to invest $70 million, or around Rs 498 crore, in two phases to increase Hazira Port’s capacity to 110 mmtpa
- Under the first phase, $20 million is being financed through internal accruals as well as debt