Essar Shipping Ports & Logistics Ltd is an end-to-end logistics services provider with investments in ports & terminals, logistics services, sea transportation and oilfield drilling services. The principal activities of the company are to undertake shipping services including cargo movement, charter, freight and other related services. They also undertake sea transportation management services and crude oil storage and distribution services. The company operates in India, parts of Asia, United States and Europe.
The company operates four businesses namely, Sea Transportation business, Oilfields drilling business, Ports & Terminals business and Logistics business. The Sea Transportation business provides transportation management services for crude oil and petroleum products, and dry bulk cargo to the global energy, steel and power industries. The Oilfields drilling business offers onshore and offshore contract drilling, and offshore construction services.
The Ports & Terminals business operates a crude oil and petroleum products terminal at Vadinar and includes the construction of a dry bulk port at Hazira and a Coal jetty at Salaya, all in the State of Gujarat. The Logistics business provides end-to-end logistics services from ships to ports, lighterage services, intra-plant logistics and dispatch of finished products.
Essar Shipping Ports & Logistics Ltd was incorporated on April 5, 1975 as Karnataka Shipping Corporation Ltd. The name of the company was changed to Essar Shipping Ltd on December 5, 1984. Subsequently, on March 24, 2008 the name of the company was changed to their present name, Essar Shipping Ports & Logistics Ltd.
In October 1994, the company entered into a joint venture agreement with Poompuhar Shipping Corporation Ltd, Chennai and formed Essar Chennai Shipping Co Ltd to cater the coal transportation. South India Shipping Corporation Ltd was merged with the company with effect form April 1, 1996.
During the year 1999-2000, the company acquired two Suexmax Tankers, which were earlier under Bareboat Charter cum Demise arrangement. During the year 2000-01, the company transferred the Terminalling Group, which consists of crude oil, POL storage and distribution services to the wholly owned subsidiary company, Vadinar Oil Terminal Ltd.
During the year 2002-2003, the company promoted two companies namely, Vilsat Investments Pvt Ltd and ESL Worldwide Sea Logistics Ltd as their subsidiaries and they divested those two companies during the year 2003-04. In October 2003, the company sold their Offshore Supply Vessels Division as a whole since the growth is miniscule. In March 2004, they added one Double Hull Double Bottom Very Large Crude Carrier namely, MT Ashna into the Energy Transportation Group.
During the year 2004-05, the company sold their Very Large Crude Carrier (VLCC), MT Ashna and also entered into a Memorandum of Agreement to sell four of their Suezmax tankers. The company acquired one Capesize Bulk carrier namely MV Chandi Prasad during the year.
The company divested two of their non-operating wholly owned subsidiaries namely, ESL Sea Logistics Limited, Cyprus, and Prime Sea Logistics Limited, Cyprus. Also, they incorporated Essar Pipeline Limited as their wholly owned subsidiary, which was also been divested in March 2005.
During the year 2005-06, the company acquired 2 Very Large Crude Carriers (VLCC) namely, MT Ashna and MT Smiti in order to increase their market share in the Crude Oil Transportation and Crude Oil Transportation Management Services. Also, they sold their four Suezmax tankers. The company voluntarily liquidated one of their wholly owned subsidiary namely, Energy I Limited, Bermuda.
During the year 2005-06, the company sold their Handysize Dry Bulk Carrier namely, MV Nand Srishti and also bought one new built Diving Support Vessel namely, MV Persistence for a consideration of Rs 23 crore from ABG Shipyard Ltd. In May 2006, Essar Logistics Ltd became a subsidiary of the company.
During the year 2007-08, the company incorporated a new subsidiary Essar Ports & Terminals Ltd in Mauritius. During the year, Essar Ports & Terminals Ltd acquired 74% shareholding of Essar Bulk Terminal Ltd, 90.50% shareholding of Vadinar Oil Terminal Ltd and 100% shareholding of Essar Bulk Terminal (Salaya) Ltd.
The company is in the process of amalgamating the India Shipping of Mauritius and Essar Sisco Ship Management Company Ltd, the wholly owned subsidiary with the company. Consequent to the amalgamation, Essar Oilfields Services Ltd, the subsidiary of India Shipping will become a wholly owned subsidiary of the company. In August 2008, the company added two modern Supramax Dry Bulk Carriers to their shipping fleet.