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Friday, 04 August 2017

Essar Ports signs concession agreement with Mozambique government to develop new 20 MTPA coal terminal in Beira Port

  • Essar's first port project in Mozambique; big boost to company's third-party cargo handling plans
  • To be developed in partnership with Government of Mozambique / CFM; concession agreement to be in force for 30 years
  • To help Beira Port emerge as an export hub for coking coal, helping Asian clients make substantial savings in freight costs
  • Phase 1 of project to attract investment close to $275 million

Mumbai, India and Maputo, Mozambique, 4 August 2017: 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) project. The project will be executed on Design, Build, Own, Operate and Transfer (DBOOT) basis through a subsidiary, New Coal Terminal Beira, SA (NCTB SA), which is a joint venture of Essar (which will own 70) and Portos e Caminhos de Ferro de Moçambique (CFM, which will own 30%). The project will enhance the coal handling capacity of Mozambique by 20 MTPA in two phases of 10 MTPA each.

Mozambique is estimated to have reserves of over 23 billion tonnes of coal, which makes the country a major coal exporter that is well placed to cater to the international steel & power industries, especially in India, China, Japan and Korea. The NCTB has dedicated rail connectivity to Mozambique's coal mining belt in the Tete region, which CFM has recently enhanced to a capacity of 20 MTPA. The first phase of this project will be developed at a cost of close to $275 million and will entail developing dedicated berths, along with state-of-the-art, mechanised and environment-friendly systems. Once operations commence, substantial direct and indirect employment opportunities will be created for the country's citizens through downstream production and expansion in the supplier and service industry.

Mr Rajiv Agarwal, CEO & Managing Director, Essar Ports, said: "We would like to congratulate the Government of Mozambique for this initiative and for partnering with Essar on such a prestigious national-level project. It will not only boost coal exports from Mozambique and strengthen its economy, but also deliver significant direct and indirect benefits."

PRESS RELEASE DATE 4 AUGUST 2017

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