Essar Ports looking to handle 85 MT in FY2017

Expects 40% growth in business on year-on-year basis

On the back of increased production by its anchor customers, Essar Ports Limited (EPL) has registered significant growth in cargo handling over the last three months. In March 2016 alone, EPL's four operational ports handled total cargoes of 6.25 million tonnes (MT), which translates to a run rate of 75 million tonnes per annum (MTPA).

With the recent commissioning of the 20 MT Salaya Bulk Terminal, cargo handling will see a further boost in FY2017. The contribution of third-party traffic to overall cargo handling stands at about 10% currently. About 90% of the cargo handled at EPL's Hazira, Vadinar, Vizag and Paradip ports is contracted with captive businesses, like Essar Steel India Ltd, Essar Oil Ltd and Essar Power Ltd.

The Company expects cargo handling to increase from 59 MT in FY2016 to 85 MT in FY2017-a growth of more than 40% on year-on-year basis.

The bulk terminal at Hazira handled 1.62 MT of cargo in March 2016, largely to service the requirements of its anchor customer, Essar Steel India, which has enhanced its capacity utilisation.With Essar Steel's production expected to rise further during FY2017, total cargo handling at Hazira is expected to reach 25 MT in FY2017.

EPL's iron ore terminal at Vizag handled 0.95 MT of cargo in March 2016. With prices of iron ore firming up, third-party exports are also expected to pick up in FY2017 and total traffic is expected to be 12 MT.

EPL's bulk cargo export terminal at Paradip Port has also registered good performance,having handled 0.4 MT in March 2016.The liquid terminal at Vadinar handled 3.28 MT of liquid cargo in March.

Essar Ports is one of the largest port companies of India, with a current capacity of 140 MTPA. The capacity is being expanded to 194 MTPA over the next few years.