The expected commissioning of the Greenfield iron ore handling terminal being built by Essar Vizag Terminals Limited (EVTL) by August will be a shot in the arm for the Visakhapatnam Port Trust (VPT) to emerge as one of the most efficient ports with a large capacity to facilitate exports to China, Japan and other countries.
“The work on the project is going at a brisk pace and once it is completed, we can handle 8,000 tonne per hour and, on an average, one lakh tonne a day, giving a competitive advantage over other leading ports,” Visakhapatnam Port Deputy Chairman P.L. Haranadh told The Hindu .
The Iron Ore Handling Complex (OHC) was handed over to the EVTL on a Build-Operate-Transfer (BOT) basis for a period of 30 years in May 2015.
The VPT signed concession agreement with the EVTL, a wholly owned subsidiary of Essar Ports Limited (EPL), to develop the Greenfield terminal and modernise WQ-1 with a total capacity of 23 million tonne.
This will involve an investment of Rs.850 crore.
The project is part of Essar Port Limited’s plan to diversify its customer profile. The mechanised cargo handling will make JSW, NMDC, and MMTC the largest beneficiaries.
With the steel industry expected to improve its performance in the second half of the next fiscal, the projected buoyancy in the economy will also see a steep increase in iron ore handling at Visakhapatnam Port.
A delegation from Japan recently visited the port and enquired about the progress of the Essar terminal.
The iron ore handling terminal will be an all-weather deep draft facility with the wherewithal to serve the rapidly growing markets of South-East Asia, including China, Japan, and Korea. It will lead to handling of super Cape size vessels with dedicated rail connectivity with Bacheli and Kirandal mines in Bastar district of Chhattisgarh.
Essar Steel has a pelletisation plant in the city. It has a fully mechanised conveyer facility with 6.7 km shipping conveyer system. As the bilateral agreement between MMTC and Japanese and South Korean steel mills for supply of high grade Indian iron ore has been finalised, there will be huge clientele for the new terminal.
