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Ruias-controlled Essar Ports on Monday said it has completed a Rs 28-billion planned investment in its Vizag and Salaya terminals in Andhra Pradesh and Gujarat, respectively. The company will now look at further investments to take its capacity further to 150 million tonnes per annum in the next two years.
“Looking at the opportunities in the sector, it cannot be that we will not look at more investment opportunities. We have plans to expand at Hazira, we have plans to expand at Salaya and are looking at a coal terminal project in Mozambique, and in all looking at an investment of $500 million in the coming years in these projects,” said Rajiv Agarwal, chief executive officer, Essar Ports. He added the investment could be higher than $500 million.
“Essar Ports Limited said that its investment of over Rs 28 billion in its Salaya and Vizag terminal projects has the potential to increase the company’s revenues by 30 per cent in FY19 on the back of third-party cargo growth,” the company said in its press statement.
With the current investments made, the company expects its operational capacity would stand at 110 mtpa in CY18. In addition, the company would look at further opportunities to expand.
The company said that further plans for setting up new facilities to handle dry bulk, liquids and liquefied natural gas at Salaya is yet to be approved. These plans are expected to entail an investment of Rs 50-100 billion.
Of the Rs 28 billion, the company invested close to Rs 20 billion to develop a dry-bulk terminal at Salaya and another Rs 8.3 billion for upgrading the iron-ore handling capacity of the Vizag terminal. With these expansions, the company said, it expects total revenue to increase by 30 per cent in the next financial year.