Essar Shipping to invest Rs500 cr in Paradip port

Essar Shipping to invest Rs500 cr in Paradip port

Mumbai: Essar Shipping Ports and Logistics said on Tuesday it has signed a license agreement with Paradip Port Trust to invest Rs500 crore n a dry bulk cargo berth.

Essar Bulk Terminal Paradip Ltd, part of Essar Shipping, has signed the agreement for a 16 million-tonnes-per-annum dry-bulk cargo berth on eastern coast, taking its total port project investments at Paradip to Rs1,000 crore, it added.

The license, for a period of 10 years, can be extended by another 5 years with mutual consent.

After completion of the project by April 2011, its total terminal capacity will be 30 million tonnes per annum, it said in a press release.

Earlier, the firm had won a project worth Rs560 crore to develop 14 million tonnes per annum deep draught coal berth at Paradip Port on a build-operate-trust basis for 30 years concession, it said.

Essar currently has a 46-million-tonne port and terminal facility at Vadinar, Gujarat, to provide handling, storage and terminalling service for crude oil and petroleum products. It is expanding the capacity at the oil terminal to 58 million tonnes.

It is also working at developing a 50-million-tonne port & jetty at Hazira and another 20-million-tonne terminal facility at Salaya, both in Gujarat.