Country's second largest private sector port company Essar Shipping today said it will complete investment programme of Rs 11,700 crore by 2012-13 for enhancing its ports capacity and acquiring equipment.
The company has two new jack up rigs on order at a cost of Rs 2,400 crore for oilfield services and the same is expected by FY13," Rajiv Agarwal, Managing Director and CEO of Essar Shipping, Ports and Logistics Ltd (ESPLL) told reporters during a conference call.
The company said it has 12 new ships on order, including six bulk carriers, which could further see a substantial investment, taking the figures to over $3 billion. However, it did not provide figures for it.
"Twelve new ships (are) on order, including six Minicapes and six Supramax Dry Bulk Carriers, expected to join the fleet in a phased manner by FY13," a company statement said.
Bulk of the proposed Rs 11,700 crore investment will come from Rs 6,150 crore, earmarked for capacity expansion projects at present, which is expected to increase to Rs 9,317 crore by 2013, the company said.
The company has plans to take up its capacity to 158 million tonnes per annum (MTPA) and it said it has tied up for finances for 138 MTPA.
It commissioned 12 MTPA terminal expansion at Vadinar on April 1, 2011, taking the Vadinar capacity to 58 MTPA and overall port capacity to 88 MTPA.
Its operations at present include sea transportation through a fleet of 28 vessels.
It owns a 30-million tonne all-weather deep draft port for import of iron ore, pellets, coal, limestone and export of finished steel products at Hazira, Gujarat besides a 46 million tonne port and terminal facility at Vadinar.
ESPLL is undergoing de-merger process for splitting the present company into two entities - Essar Ports Ltd, constituting the Ports business, while Essar Shipping Ltd will contain shipping, Logistics and Oilfields Services businesses.