Essar Ports has achieved a significant increase in profitability, according to recently released figures for 2014-15. On an EBITDA basis profits for the financial year were Rs. 1416 crores, (US$221.8 million) up 7 per cent compared with the 2014 financial year.
The company’s ports across India handled a total of 73 million tonnes last year, slightly up on the 72.16 million tonnes recorded in the preceding 12 months. In an important development in May this year, the company took over operations at an existing berth in the port of Vizag from Vizag Port Trust and this has the capacity to handle 16 million tonnes annually. Essar has also signed a concession agreement with Kandla Port Trust (KPT) for an additional SBM facility and two additional product tanker berths. Furthermore, Essar is working on a bulk terminal development at Salaya port, which has reportedly now received all the necessary regulatory approvals.
In addition, the company is also expanding its Hazira port terminal’s capacity by 20 million tonnes a year, to 65 million tonnes, and is increasing capacity at its iron ore berths at Visakhapatnam, bringing total annual capacity there to 16 million tonnes. The company further plans to develop a coal terminal at Paradip with an annual throughput capacity of 18 million tonnes.