Es­sar Ports Bags First Over­seas Project in Mozam­bique

The Economic Times - - Companies: Pursuit Of Profit - Our Bureau

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.

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