| Code: 87301 |

TIN news:   Essar Bulk Terminal Ltd, a subsidiary of Essar Ports Ltd, on Thursday, said it has received an approval from state port regulator Gujarat Maritime Board (GMB) to handle 15 million tonnes per annum (mtpa) of third party merchant cargo over three years at its terminal at Hazira.
Based on this approval, the Hazira terminal will be able to handle a range of cargo for merchant customers, including dry bulk, liquid bulk, containers and so on.
The approval was granted under GMB’s captive port policy where jetties built on captive licences can handle third-party cargo up to a maximum of 50 per cent of the total cargo handled. This would benefit the local industry who will now have access to a modern port facility. It will also increase the revenue to the state government because of better utilization of port capacity. The all-weather Hazira terminal’s capacity is being increased from 30 mtpa to 50 mtpa of cargo annually, Rajiv Agarwal, Managing Director, Essar Ports Ltd, said.
Various coal traders and industrial customers have entered into agreements with us to handle their cargo through the Hazira terminal to take advantage of our deep draft and high mechanisation, which result in significant cost advantages. Our terminal also presents opportunity for these customers to utilise port services when the Magdalla port next door closes during the monsoon season, he said.
The permission for handling third-party cargo to Hazira terminal was earlier provided on a case-to-case basis. The fresh permission allows Essar to handle 15 mtpa of third party commercial cargo over the next three years. Further approvals may be sought once the 5 mtpa of cargo is handled. GMB will benefit from this arrangement since the wharfage charges it collects for the commercial cargo handled at Hazira terminal is 1.5 times the wharfage received by GMB at other ports.
The Hazira terminal has already started handling merchant coal cargo under this approval and handled 0.75 MMT until date.
Essar Ports’ current capacity of handling 140 mtpa of cargo is being expanded to 194 mtpa over the next few years. The company has five operational port terminals at Hazira, Vadinar, Paradip, Salaya and Vizag.

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