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India’s Essar Ports has signed a 30-year concession agreement with the Government of Mozambique to develop a new coal terminal at Beira Port, as part of a Public Private Partnership (PPP) initiative. The project will be executed on Design, Build, Own, Operate and Transfer (DBOOT) basis through a subsidiary, New Coal Terminal Beira (NCTB).
NTCB will be a joint venture between Essar, which will own 70%, and Portos e Caminhos de Ferro de Moçambique (CFM), which will control the remaining 30% stake. The project will eventually increase Mozambique’s coking coal export capacity by 20 million tonnes a year. Two development phases, of 10 million tonnes each, are planned, with a view towards reducing transportation costs for coal destined for Asian markets.
The first phase of the new terminal, which will have a direct rail connection to Mozambique’s coal mining belt, will be developed at a cost of close to US $275 million. Facilities will incorporate dedicated coal handling berths, along with advanced environment-friendly handling systems.
Rajiv Agarwal, Chief Executive and Managing Director, Essar Ports, said: “This is a prestigious project that will boost coal exports from Mozambique and strengthen its economy, delivering significant direct and indirect benefits.”
Essar Ports is one of the largest port companies in India, with a current capacity of around 140 million tonnes annually, at Hazira, Vadinar, Paradip, Salaya and Visakhapatnam ports. This will be increased to 194 million tonnes over the next few years. The company is, for example, expanding capacity at Hazira port by 20 million tonnes a year, and is building new iron ore berths at Visakhapatnam Port, which will have a total capacity of 16 million tonnes annually.
