Essar Ports has signed a 30-year concession agreement with the Government of Mozambique to develop a 20 million tons per annum (MTPA) coal terminal at Beira Port as part of a Public Private Partnership (PPP) project.
More Details about Essar Ports agreement with Mozambique Government for developing Coal Terminal:
The project will be executed through a subsidiary, New Coal Terminal Beira (NCTB), which is a joint venture between Essar and Portos e Caminhos de Ferro de Moçambique (CFM).
- Essar will hold 70% stake in the subsidiary and CFM will hold 30% stake.
- Rajiv Agarwal – CEO and Managing Director of Essar Ports said, this project will not only boost coal exports from Mozambique and strengthen its economy, but also deliver significant direct and indirect benefits.
- Mozambique is estimated to have reserves of over 23 billion tonnes of coal, which makes the country a major coal exporter that is well placed to cater to the international steel and power industries, especially in India, China, Japan and Korea.
- The project will enhance the coal handling capacity of Mozambique by 20 million tonnes per annum (MTPA) in two phases of 10 MTPA each.
- The first phase of this project will be developed at a cost of close to $275 million and will entail developing dedicated berths, along with state-of-the-art, mechanised and environment-friendly systems.
- The NCTB has dedicated rail connectivity to Mozambique’s coal mining belt in the Tete region, which CFM has recently enhanced to a capacity of 20 MTPA.
- Post commencement of operations, substantial direct and indirect employment opportunities will be created for the country’s citizens through downstream production and expansion in the supplier and service industry.
About Essar Ports:
Essar Ports is a part of the Essar Group, a multinational conglomerate and a leading player in the sectors of steel, oil and gas, power, communications and business process outsourcing (BPO), shipping, ports and logistics, projects, and minerals.
- Essar Ports Limited (EPL) develops and operates ports and terminals.
- It is one of the largest private sector port companies in India by capacity and throughput.
- Rajiv Agarwal is the current CEO and Managing Director of Essar Ports.