Essar Ports Bags First Overseas Project in Mozambique
Mumbai: Essar Ports on Friday said it has signed a pact for its first overseas port project in Mozambique, where it will join hands with the local government to build the facility that would entail an initial investment of about $275 million. The concession agreement was signed with the Mozambique government to develop a new 20 million tonnes per annum (MTPA) coal terminal in Beira Port. The port will be developed in partnership with the Mozambique government as part of a 30-year concession agreement.
“There are massive coal reserves in the location and limited infrastructure. We found that to be a good opportunity,” said Rajiv Agarwal, CEO of Essar Ports.
The project will be executed on a design, build, own, operate and transfer (DBOOT) basis through a subsidiary, New Coal Terminal Beira, SA (NCTB SA). It is is a joint venture of Essar (which will own 70%) and Portos e Caminhos de Ferro de Moçambique (CFM, which will own 30%).
The project will enhance the coal handling capacity of Mozambique by 20 MTPA, in two phases of 10 MTPA each.
Mozambique is estimated to have reserves of over 23 billion tonnes of coal, which make the country a major coal exporter that is well placed to cater to the international steel & power industries.