Essar Shipping to pump Rs5,500 cr by FY13

Essar Shipping to pump Rs5,500 cr by FY13

Kolkata: Essar Shipping, Ports & Logistics Ltd (ESPLL) will be investing around Rs5,500 crore in capacity building in ports and shipping activity.

“We are investing in capacity building in both ports and shipping activity. Around Rs3,100 crore would be invested in adding port capacity and $570 million (Rs2,400 crore approx) for acquiring new 12 dry bulk vessels," ESPLL CEO (sea transportation) Anoop Kr Sharma said.

“The company aims to increase capacity from 76 MTPA to 158 MTPA by 2013," he said.

The projects undertaken for expansion include 12 MTPA at Vadinar, 20 MTPA at Hazira, 20 MTPA at Salaya and 30 MTPA at Paradip across two projects of 16 and 14 MTPA each.

ESPLL said that so far it had invested around Rs5,700 crore in ports.

According to Sharma, the company has placed orders for 12 vessels for dry bulk cargo and delivery schedule would begin mid-next year.

He said the company did not cancel orders of the tailormade ships despite prices having come down considerably.

“There had been some adjustments but we have not cancelled orders due to slowdown in the industry," Sharma said.

He said that the industry was waiting for US demand to pickup, which would help in some improvement in freight rates.