Essar Vizag Terminals Ltd (EVTL) handled 2.19 million tonnes (MT) iron ore cargo in April-June quarter this fiscal, a jump of over sevenfold, aided by improved performance in the steel sector.
EVTL, a wholly-owned subsidiary of Essar Ports Ltd (EPL), had handled 0.31 MT iron ore in the year-ago period.
“During Q1 2016-17, EVTL handled 2.19 MT (29 vessels) of cargo as against 0.31 MT (6 vessels) in Q1 2015-16 in the backdrop of improving Indian steel sector performance and project upgradation works,” EPL said in a statement.
EVTL is now operating with a net average loading rate of 3,000 tonnes per hour (TPH) as against less than 1,000 TPH during April-June 2015-16 and aims to achieve 4,000 TPH by July-September along with simultaneous project upgradation.
In May 2015, Essar took over Vishakhapatnam Port Trust’s iron ore handling complex on a Build-Operate-Transfer basis for a period of 30 years.
“Essar Ports expects enhanced capacity utilisation during 2016-17 and cargo handling to increase from 59 MT in 2015-16 to 85 MT in 2016-17, thereby registering a growth of over 40 per cent year-on-year with third party cargo business to increase to more than 14 per cent in 2016-17,” the firm said.
The firm is also upbeat about the bilateral agreement between MMTC and Japanese and South Korean steel mills for supply of high grade iron ore during the three-year period from April 2015 to March 2018 for shipment of 3.8 MTPA to 5.5 MTPA.
“EVTL, is upbeat on catering to these requirements. The agreement stipulates supplying of up to 16.5 MT of high grade iron ore to steel plants in Japan and South Korea over three years till March 2018,” it added.
With Essar steel expected to increase production significantly during 2016-17, total cargo handling at Vizag is expected to double this year as compared to 2015-16.
Essar Ports Managing Director Rajiv Agarwal said, “The iron ore terminal in Vizag Port has successfully started operations from May 2015 and has been undertaking simultaneous operations and project works with excellent outcomes.”
The Terminal has boosted third-party business and enhanced Essar Port’s presence on the East coast of India, he added.