10 August 2017
Essar Ports Takes on African Terminal
Essar Ports with the deal agrees to develop a new coal terminal at Beira Port in a Public Private Partnership (PPP) project with Mozambique’s government.
Essar Ports will undertake the project on Design, Build, Own, Operate and Transfer (DBOOT) basis through a subsidiary, New Coal Terminal Beira(NCTB SA).
The Indian operator sees the coal terminal as a big boost to its third-party cargo handling plans.
It plans to a joint venture of Essar and state-operated railways authority Portos e Caminhos de Ferro de Moçambique. Respectively the partners will take a 70% and 30% interest in the project.
Together they will build a coal terminal that should have a total coal handling capacity of 20 MTPA, being constructed in two phases of 10 MTPA each.
Investment of close to $275 million is expected to finance the first phase.
Once fully constructed, this planned coal terminal could also help Beira Port emerge as an export hub for coking coal, helping Asian clients make substantial savings in freight costs
Mozambique is estimated to have reserves of over 23 billion tonnes of coal, which makes the country a major coal exporter.
Essar Ports is one of the largest port companies of India, with a current capacity of 140 MTPA and five operational port terminals at Hazira, Vadinar, Paradip, Salaya and Visakhapatnam.
Mr Rajiv Agarwal, CEO and Managing Director, Essar Ports, said: “We would like to congratulate the Government of Mozambique for this initiative and for partnering with Essar on such a prestigious national-level project.
“It will not only boost coal exports from Mozambique and strengthen its economy, but also deliver significant direct and indirect benefits.”