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Friday, June 18, 2021

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Essar Ports’ pact with Port of Antwerp International

Posted to Essar Ports’ pact with Port of Antwerp International (by on May 30, 2012

The strategic alliance between Essar Ports and Port of Antwerp International will add value for both parties creating breeding grounds for further development of both regions

Essar Ports Limited, one of India’s largest private port companies, has entered into a long-term strategic alliance with Port of Antwerp International (“PAI”). The latter has made an investment of approx. $ 35 million in Global Depository Shares of Essar Ports

The Antwerp Port Authority and Essar Ports will collaborate in the areas of training, consultancy services, port planning, traffic flow, quality and productivity improvement, and will further build a mutually beneficial commercial relationship based on mutual business and investment preferences. Both Essar Ports and PAI will mutually assist in the growth in the volume of their businesses.

 

PAI is the international investing arm of the Antwerp Port Authority, which is the port authority of the port of Antwerp - the second largest port in Europe handling 187 MMT of cargo (in 2011), and a gateway to many European economies.

 

Essar Ports is part of the Essar Group which is a multinational conglomerate and a leading player in the sectors of steel, energy, power, construction, retail, shipping, ports, infrastructure and services. Essar Ports having two operational ports at Hazira and Vadinar, with a total capacity of 88 MMTPA and is being expanded to 158 MMTPA over the next few years.

 

Marc Van Peel, President of the Antwerp Port Authority stated, “Essar Ports is a highly regarded, strong and reliable partner with a lot of know-how in India. We will rely on them for the development of port activities in India, one of the strategic regions of our sister company, PAI. The port of Antwerp will share her knowledge and expertise on port development and strategy with Essar Ports. This added value for both parties will create breeding grounds for further development of both regions.”

 

Essar Ports is long-term and strategic in nature, focusing on the commercial relationship between the two companies and mutually enhancing the productivity, skill set and performance. PAI will also have the right to nominate a director on the Board of Essar Ports and Jan Adam, CFO- Port of Antwerp has been appointed as Non-Executive Director in the Board of Essar Ports Ltd.

 

On this occasion, Rajiv Agarwal - Managing Director of Essar Ports said, “We are extremely happy that Port of Antwerp which is Europe’s second largest port has partnered us. This partnership will promote growth of port traffic between Port of Antwerp and ports of Essar and help us in developing world class port facilities with focus on quality, productivity and environment”.

 

PAI is a subsidiary of the Antwerp Port Authority and was founded in June 2010 as investing and consultancy arm of the Antwerp Port Authority with the mission to capitalize on the expertise of the Antwerp port sector and to establish a global port network via specific investments and consultancy.

 

Besides India, PAI is also considering opportunities in West Africa, Brazil and South East Asia. PAI has signed an agreement with Rent A Port and the Omani Government to develop a new port in Duqm.

 

With regard the two ports of Essar, the Hazira port is an all-weather, deep-draft port with 30 MMTPA of dry bulk and break bulk cargo handling capacity. The other port, Vadinar, is also an all-weather, deep-draft port with 58 MMTPA of liquid cargo handling capacity. 

 

Essar Ports is currently developing two terminals at Paradip with a capacity of 30 MMTPA comprising an iron ore berth of 16 MMTPA and 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

 

 

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