Essar Bulk Terminal Ltd, a special purpose vehicle (SPV) set up under Essar Ports Ltd, is looking to a sharp increase in cargo handling at its Hazira port terminal following the company's focus on third-party cargo. In 2016-17, the company registered total cargo handling at Hazira port at 18 mt, which it expects to increase to about 28-29 mt by March 2018.

The company has also signed an agreement with the Gujarat Maritime Board (GMB), the state ports regulator, for expanding its captive jetty by 1,100 metres from the existing 550 metres.

The expanded berthing facility is expected to be ready by the end of fiscal 2018, and will enhance the current capacity by 20 mtpa to take the total capacity to 50 mt.

"We are investing about Rs 1,000 crore for the expansion over a period of two years. The commissioning will happen in phases. By March 2018, the water front part of the jetty will be ready, while the mechanisation and complete commissioning will happen by March 2019. Financing for the investment will happen mostly through internal accruals and partly through debt," Rajiv Agarwal, Managing Director, Essar Ports, told BusinessLine .

This will not only help cater to the enhanced cargo requirements of Essar Steel, its anchor customer, but also give a boost to the company’s third-party cargo business. Essar Steel production is expected to increase further during fiscal 2018, but according to the mandate, Essar Steel can use up to 50 per cent of the installed capacity, while the rest is being used by either long-term customers or need-based customers, Agarwal said.

Hazira Port, which handles dry bulk cargo and liquid cargo, has four jetties with combined capacity of 50 MTPA.

EBTL alone registered 26 per cent Q-o-Q growth in cargo in the first quarter of fiscal 2017-18 by handling about 5.5 mt of cargo in the quarter. In June 2017, the terminal handled record 1.86 mt.

Hazira Port Terminal is an all-weather, deep-water terminal located in the Gulf of Khambatt, Gujarat. The terminal has depths of 14 metres below chart datum (CD) and is capable of accommodating capesize vessels. The Port terminal is integrated with Essar’s Hazira Complex, which consists of a 10 mt steel plant, power plants and other manufacturing facilities.

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