Ruias emerge highest bidder for Vizag Port project

MUMBAI: In a step towards handling third party cargo, Ruia Brothers-controlled Essar Ports (EPL) has emerged as the highest bidder to build and operate three iron ore berths at Visakhapatnam Port, through its wholly owned subsidiary Vadinar Oil Terminal.

Essar Ports bid highest at 31.01% revenue share mechanism and operation of three iron ore berths. People familiar with the development told ET, the project involves upgradation of the existing terminal and building new facilities with a total cost of over Rs 800 crore. “This project will significantly increase the third party cargo handling of Essar Ports by contributing 17 MMTPA of cargo,” said Rajiv Agarwal, MD, Essar Ports.

“This project will significantly increase the efficiency of Visakhapatnam Port.” Currently, Essar Ports has three operational terminals at Hazira, Vadinar and Paradip. Vishakhapatnam port handled 12.3 million tonnes of iron ore during FY 13 in spite of slump in iron ore export in India, states the release by the company on Friday.

“On commissioning of this project , EPL’s total capacity for iron ore export at the east coast will become 39 MMTPA with 4 iron ore berths,” it says.