Essar Ship port rev seen thrice FY11 aim $173 mn in 3 yrs

Essar Ship port rev seen thrice FY11 aim $173 mn in 3 yrs

Singapore: Essar Shipping Ports & Logistics is aiming to boost its revenue from its port operation to as much as three times its 2011 fiscal year forecast of $173 million within next three years.

The growth would be driven by higher capacity of its ports as well as utilisation of the infrastructure, chief executive Rajiv Agarwal said on the sidelines of a conference in Singapore on Tuesday.

“We will put port capacity up from 75 million tonnes to 158 million tonnes and capacity utilisation will go from 40 million tonnes to 120 million tonnes so that is what we are looking at on the port side," Agarwal told Reuters.

He concured when asked if revenue growth will be in line with the growth in additional capacity and utilisation, which he said is expected to happen within next three years.

Earlier this year the company had said it plans to invest $1.8 billion over next three years.

The company is in the process of demerging its shipping, logistics and oilfields businesses from its ports business, which is expected to be completed in three-four months.

After the demerger, which will simplify Essar Shipping’s business structure and unlock value, the company will be renamed Essar Ports and the new entity will be called Essar Shipping which will be listed on the stock exchanges.