With the investment, the terminal's cargo handling capacity will go from the existing 30 million tonne per annum to 50 mtpa.
Essar Bulk Terminal Ltd (EBTL) is investing Rs 750 crore to raise capacity of the bulk terminal at Hazira, Gujarat.
According to a company statement on Monday, the latest investment will take cargo handling capacity from the existing 30 million tonne per annum (mtpa) to 50 mtpa. EBTL has already invested Rs 2,450 crore in the existing facility.
After completion, the terminal will be able to berth seven vessels at one go.
In the quarter ending June 30, 2016, traffic at Hazira terminal increased by 80% to 4.4 mt, as against 2.4 mt in the corresponding quarter of the previous year.
"The cargo growth is backed by a ramp-up in operations by Essar Steel's 10-million tonne plant in Hazira. The total port traffic is expected to reach 24 mt in 2016-17, as against 12.7 mt in 2015-16," said the statement.
A special purpose vehicle, EBTL, has also received permission from the Gujarat Maritime Board to handle 15 mt of third-party cargo over three years. During 2015-16, it handled 0.75 mt of third-party traffic and the same is expected to grow to 5 mt by 2018.
Capt S Das, CEO, EBTL, said, "The Hazira Terminal has been integral to fulfilling the cargo handling requirement of Essar Steel plant. The expanded terminal will not only help us service the enhanced requirements of our anchor customer but also cater to our growing volumes of third-party cargo."
Rajiv Agarwal, CEO & managing director, Essar Ports, said, "EBTL has a huge potential and is moving in the right direction to unlock that potential. Its performance in the last one year has been extremely heartening. I have no doubt that the expansion project will help the company scale new heights."
Essar Ports is one of the largest port companies in India with a capacity of 140 mtpa that is being expanded to 194 mtpa over the next few years. Essar Port's five operational port terminals at Hazira, Vadinar, Paradip, Salaya and Vizag Iron Ore are estimated to handle approximately 80 mt of cargo in 2016-17.
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