Hazira Port (Essar)
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Hazira Port (Essar) is a multipurpose port in Gujarat, India, operated by Essar Bulk Terminal Ltd., which is jointly owned by AM/NS (ArcelorMittal/NipponSteel) and Essar Group. Its main function is to import and export materials, including coal, for the nearby Essar Steel India Limited steel plant, which was purchased by AM/NS in 2019.
As of May 2020, the Essar Hazira Port had an annual capacity of 50 million tonnes per year, with plans to increase capacity.[1] In 2018, the port handled 41 million tonnes of cargo.[2]
The Hazira Port area also includes the port facilities operated by Adani Group and the Hazira LNG Terminal, owned by Shell.
Location
The map below shows the bulk cargo berth at the Essar Hazira Port. The port is located on India's west coast, on the Hazira peninsula about 25km west of Surat. The Adani Hazira Port and the Hazira LNG terminal are located on the other side of the Hazira peninsula, directly to the west. The Essar Steel India Limited steel plant is located directly to the north along the Hazira peninsula.
Background
The Essar Hazira Port was constructed as a captive facility for importing coal and ore and exporting steel for the Essar Steel India Limited steel plant - all of the raw materials for the steel plant flow through the port.[3] The first phase of the Essar Steel India Limited steel plant began operations in 1995 and has an annual production capacity of 10 million tonnes.[4] In December 2019, AM/NS (ArcelorMittal/NipponSteel) acquired the steel plant through its purchase of Essar Steel for ₹42,000 crore (approximately US$6.3 billion) under India's Bankruptcy and Insolvency Code.[5][6]
Not long after the acquisition, AM/NS filed a petition to assume ownership of the Essar Hazira Port, claiming that its purpose as a captive port for the steel plant granted AM/NS ownership rights. This was a departure from its position during the acquisition proceedings, when it instructed Essar to continue the port services at Hazira on the same terms and conditions. Essar Group also complained that AM/NS had defaulted on ₹450 crore (approximately US$64 million) in payments owed to Essar Bulk Terminals Ltd.[3] As of September 2021, the complex legal battle between the two companies was ongoing.[7]
Expansion Plans
In January 2019, Essar Group announced plans to increase capacity at the Hazira Port to 95 million metric tonnes per annum by mid-2019, with an investment of $20 million or about ₹142.5 crore. It ultimately planned to increase capacity to 110 million tonnes per annum.[2] However, as of May 2020, capacity at the port was still 50 million tonnes per annum. The status of the expansion plans are unclear, especially given the acquisition of the steel plant by AM/NS and the ongoing legal battle between the two companies.
In 2021, AM/NS announced plans to increase the annual production capacity at the Hazira steel plant by 5 million tonnes, to be completed within three years. The expansion would entail "enhancing port facilities," likely referring to the Essar Hazira Port, although no specific amounts were given.[8]
Project Details
- Operator: Essar Bulk Terminals, Ltd.
- Owner: Essar Group (74%); AM/NS (26%)[9]
- Location: Surat, Gujarat, India
- Annual Capacity (mtpa): 50 million (all cargo)
- Proposed Expansion (mtpa): 60 million (all cargo)
- Status: Operating
- Coal source:
- Cost:
- Financing:
Articles and resources
References
- ↑ India’s dry bulk, energy shipping to normalize in 3-4 months: Essar Ports CEO, Hellenic Shipping News, May 12, 2020
- ↑ 2.0 2.1 Essar to Expand Hazira Port Capacity, Essar Group, Jan. 28, 2019
- ↑ 3.0 3.1 Suresh P Iyengar, ArcelorMittal, Essar tussle over Hazira port takes legal turn, Business Line, July 26, 2020
- ↑ Hazira Steel Plant : India’s second largest single location gas-based flat steel plant, Essar Group, Accessed November 2021
- ↑ ArcelorMittal, Nippon Steel complete acquisition of Essar Steel, Rakhi Mazumdar, The Economic Times, Dec. 17, 2019, Retrieved on: May 6, 2020
- ↑ ArcelorMittal and Nippon Steel win 'Deal of the Year' for acquisition of Essar Steel, Paul Weigh, ArcelorMittal, Jul. 6, 2020, Retrieved on: Oct. 7, 2020
- ↑ Suresh P Iyengar, SC dismisses AM/NS plea against Gujarat HC order, Business Line, Sep. 15, 2021
- ↑ ArcelorMittal Nippon Steel charts out 5-millon-tonne expansion in 3 years, Business Standard, June 8, 2021
- ↑ Maulik Pathak, 2019 captive jetty policy on hold, Times of India, July 8, 2021
