Essar Ports takes over Vishakapatnam Port Trust iron ore handling complex

MUMBAI: Essar Ports Thursday said it has taken over Vishakapatnam Port Trust’s (VPT) iron ore handling complex, and will invest Rs 1,200 crore to enhance the facility over the next three years.
Essar Port’s current iron ore handling capacity is 104 million tons per annum. Takeover of the port will immediately increase it to 120 million tons. Further investment will take it up to 127 million tonnes.

Essar has made an upfront payment of Rs 185 crore to VPT for the build-operate transfer contract which spans a period of 30 years. It will also pay VPT a revenue share.

“The facility is well placed to cater to both the domestic and international steel Industry. It will serve major iron ore consuming countries like China, Japan, Korea in addition to coastal movement within India. The facility has dedicated rail connectivity to India’s iron ore mining belt,” said Rajiv Agarwal, CEO and managing director at Essar Ports.