Maputo — The Indian company Essar Ports announced that it has signed a pact for its first overseas port project in Mozambique.
According to the Indian newspaper "The Economic Times", the concession agreement was signed with the Mozambique government to develop a new 20 million tons per annum coal terminal in Beira Port, in the central Mozambican province of Sofala.
The port will be developed in partnership with the Mozambican government in a concession agreement to be in force for 30 years. The first phase of the project would entail an investment of 275 million US dollars.
The project will be executed on a 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 and 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 entail the development of dedicated berths, along with state-of-the-art, mechanised and environment-friendly systems.
Essar Ports has a current capacity of 140 million tons per annum. The capacity is being expanded to 194 million tons over the next few years.
Essar Ports has five operational port terminals at Hazira, Vadinar, Paradip, Salaya and Visakhapatnam.