Essar Ports on a high trajectory growth
Cargo throughput rises by leaps and bounds owing to mushrooming captive cargo growth
Driven by captive cargo growth comprising a total 98 per cent of the entire throughput at its ports and terminals, Essar Ports Ltd achieved a five-fold jump in net profit amounting to $ 100.3 million for the year 2012-2013. The cargo handled during this period recorded its highest ever quantum touching an all time high of 54.52 million tonnes during FY2013 as against 43.23 million tonnes in the previous year.Speaking on the key highlights for the year, Rajiv Agarwal, Managing Director, Essar Ports Ltd. stated, “The Company commissioned the state of the art 16 MMTPA dry bulk terminal at Paradip, with a fully mechanized ship loading system having a capacity of 5,000 tons per hour. It is one of the most modern terminals of its type in India, connected to the stockyard by a 9 km long covered conveyor system. The company also completed construction of 3 HSD tanks of capacity 180,000 KL during the year at Vadinar, in Gujarat.”
Mr Agarwal also informed that the company’s improved performance has been on all parameters and has been in line with the expected growth. As a result the company is confident of sustaining the performance in the coming quarters too. A unique trend that has been witnessed in India Mr. Agarwal said was the shifting of cargoes to modern and efficient ports. Essar Ports have tried to maximize its operational efficiency by keeping all the costs under control. The company has declared a dividend of 5 per cent and slowly but surely is emerging as creator of value for the shareholders. The company was on track with respect to execution of various projects and operations ramping up.
Essar Ports Ltd belongs to the Essar Group which is a multinational conglomerate and a leading player in the sectors of steel, energy, infrastructure and services. With operations in more than 25 countries across five continents, the group employs 75,000 people, with revenues of US$ 27 billion.
Ranking second largest among private port companies in India, Essar Ports Ltd., with a current capacity of 104 MMTPA is on a robust expansion mode. The capacity is being ramped up to 158 MMTPA over the next few years. Currently, the company has three operational terminals at Hazira and Vadinar on the West coast of India and Paradip on the East coast. The Hazira port is an all-weather, deep-draft port with 30 MMTPA of dry bulk and break bulk cargo handling capacity. Vadinar, also an all-weather, deep-draft port has a 58 MMTPA of liquid cargo handling capacity. Paradip dry bulk terminal was commissioned in December 2012 and is an all-weather, deep-draft port with 16 MMTPA of dry bulk cargo handling capacity.
Essar Ports is currently developing one terminal at Paradip which will be a coal berth of 14 MMTPA. The Company is also setting up a dry bulk terminal at Salaya with a capacity of 20 MMTPA. Additionally, the Company plans to expand its Hazira port capacity by 20 MMTPA – taking its capacity to 50 MMTPA.
So far the company had been catering to its captive cargo. But now the focus has also been extended on to developing merchant cargo business. The company has handled containerized cargo in a small way and hopes to shore up this business too in course of time.