WASHINGTON: Essar Ports has invested 830 crore to upgrade and almost double the iron ore handling capacity of its Vizag Terminal (outer harbour) in Andhra Pradesh, a top company official said. The capacity enhancement work from 12.5 million metric tonnes per annum (MMTPA) to 23 MMTPA is nearing completion and will be fully operational in November this year, he said. Essar Vizag Terminal Ltd (EVTL), the entity that bagged 30-year concession from Visakhapatnam Port on Design-Build-Finance-Operate-Transfer (DBFOT) basis, has already ramped up iron ore handling capacity of the terminal from 25,000 tonnes per day to 70,000 tonnes per day by replacing and modernising the conveyor belt and related infrastructure. After completion of the expansion work, the loading capacity of the terminal will increase to 1.2 lakh tonnes per day and the facility will be able to berth vessels up to two lakh DWT with a draft of 18 metres on the outer harbour, he said. “On completion, the upgraded terminal will have a loading rate of 8,000 tonnes per hour which will be among the highest for an Indian port,” said Rajiv Agarwal, managing director, Essar Ports. EVIL was awarded the contract in 2012 but it took over the facility only in 2015. Since then, the company has been investing heavily to upgrade it, Mr. Agarwal said.
The 830-crore investment includes ₹200 crore upfront payment made to Visakhapatnam Port Trust at the time of takeover. In the last two years, EVTL officials said the company had managed to reduce spillage rate to 0.18%. “We are determined to cut down spillage and emission to virtually near zero levels,” said C.H. Satyanand, CEO, EVPL. “Our objective is to be the preferred choice of exporters in eastern India.” Mr. Satyanand added. The iron ore handling terminal is an all-weather deep draft facility which includes a receiving and a shipping system. While the receiving system is a completely mechanised facility that comprises high capacity wagon tipplers for receiving cargo by rakes and one of the longest conveyor systems that transfer cargo to a stackyard, the shipping system comprises high capacity reclaimers and ship loaders. The entire facility is being upgraded to achieve high level of efficiency, officials said. Out of the total investment, 560 crore has been mobilised through debt.
