Essar Ports will be investing Rs 550 crore by March 2018 to increase its cargo handling capacity at its Hazira Port by 20 million tonne per annum, sources said today.
"We will be investing Rs 550 crore for expansion at the port wherein the 500-metre berth is being expanded to 1,100 metres," a source said.
The total capital expenditure by the company from the diversified group will go up to Rs 10,500 crore with this expansion.
Essar Bulk Terminal, the operator of the Hazira Port Terminal facility, has signed an agreement with the Gujarat Maritime Board (GMB) for more than doubling its captive jetty to 1,100 metres, the company said in a statement.
The expansion is to be completed by the end of next March and will increase the capacity by 20 mt per annum, it said, adding this will help its anchor customer Essar Steel and also third-party cargo handling.
As Essar Steel's production is expected to increase further during FY18, total cargo handling at the port is likely to cross 25 million tonne in the year, the company said in a statement.
The company said all of its port terminal facilities have registered a jump in cargo handling in the last three months on the back of improved performance of their anchor customers.
Essar Bulk Terminal alone registered a 26 per cent growth in volumes in the June quarter over the preceding three months at 5.5 million tonne and set a record by handling 1.86 million tonne in a single month in June, it said.
The Hazira Port, located in the Gulf of Khambatt, is integrated with Essar's Hazira Complex which consists of a 10 million tonne steel plant, captive power plants and other manufacturing facilities.
The statement said Essar Ports registered a 12 per cent growth in its cargo handling to 19.62 million tonne, with dry bulk and unit cargo increasing 32 per cent and third-party cargo jumping 60 per cent.
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