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Essar bets big on ports business

05 Jan 2011 Evaluate

Essar Shipping, Ports and Logistics Ltd, which is in the process of de-merging its ports and shipping businesses into two entities, is betting big on the ports sector, and lining up fresh investments of Rs 3,300 crore in the next three years to double its cargo handling capacity.

The company has already invested about Rs 5,700 crore for creating port infrastructure envisaging handling of dry bulk and liquid cargoes so far, has already tied up finances for the fresh investments of Rs 3,300 crore. The new port capacities include two new berths at Paradip port of total 30 mt capacity and expansion of its Salaya and Hazira facilities by 20 mt each.

With this investment, the company's cargo handling capacity will be going up from the present 76 million tonnes to 158 million tonnes by 2012-12, making it the second biggest port operator after Mundra, which is expanding its capacity to 170 mt by 2013-14. It expects to garner revenues of about Rs 750 crore from the ports business this fiscal, targeting a top line growth of about 70 per cent for next fiscal.

Peers
Company Name CMP
Shipping Corpn. 305.85
GE Shipping 1425.30
Dredging Corp 976.65
Seamec 1556.00
Shreeji Ship.Global 377.10
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