The iron ore handling complex (OHC) being operated by Essar group in Visakhapatnam port is set to achieve handling capacity of 8,000 TPH, one of the highest in the port sector in the country, according to a press release.

The OHC was handed over to the Essar group last year by the Visaskhapatnam port for upgrading and operation for a period of 30 years. Essar Ports Limited (EPL) has set up a wholly-owned subsidiary, Essar Vizag Terminals Limited (EVTL), for managing the OHC. Through the addition of the facility, the EPL has seen its third party cargo share jump to more than 8 per cent. During the first quarter, EVTL has handled 2.19 million tonnes of cargo, handling 29 vessels, as against 0.31 million tonnes (six vessels) during the corresponding period last year.

The OHC is currently operating at 3,000 TPH and is set to reach 4,000 TPH by next year. It 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 South Korea. It can accommodate super capesize vessels and has dedicated rail-connectivity with Bacheli and Kirandal mining sources by which the facility has an advantage to serve the western sector too. It is also integrated with Essar Steel (pellet plant) in Vizag through a fully mechanised conveying facility with 6.7 km shipping conveyor system.

Bilateral pact As the bilateral agreement between MMTC and Japanese as well as South Korean steel mills for supply of high grade Indian iron ore from April 2015 to March 2018 is finalised and mandates for shipment of 3.8 MTPA to 5.5 MTPA, EVTL is upbeat on catering to these requirements.

The agreement stipulates supplying up to 16.5 MT 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 during the current financial year.

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