India's leading port company Essar Ports Friday said it 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 project.
This will be Essar's first port project in Mozambique, which is expected to give a big boost to the company's third-party cargo handling plans, Essar ports said in a statement.
The project will enhance the coal handling capacity of Mozambique by 20 million mt/year in two phases of 10 million mt/year each.
According to the statement, the project will be executed on design, build, own, operate and transfer basis through a subsidiary, New Coal Terminal Beira, SA, which is a joint venture between Essar (which will own 70%) and Portos e Caminhos de Ferro de Mocambique (30%).
It will help Beira Port emerge as an export hub for coking coal, helping Asian clients make substantial savings in freight costs.
Mozambique is estimated to have over 23 billion mt of coal reserves, which makes the country a major coal exporter to cater to the international steel & power industries, especially in India, China, Japan and South Korea, the statement said.
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 million mt/year.
The first phase of this project will be developed at a cost of around $275 million and will entail developing dedicated berths, along with state-of-the-art, mechanized and environmentally friendly systems, the statement said.
Source: PlattsPrevious Next
Huge Opportunities For Investment in Maritime Sector: Nitin Gadkari
India Shipping and Offshore Summit