Our terminals are well poised to handle over 50 MT of cargo in the current financial year

- Rajiv Agarwal

Operating Partner (Infrastructure), Essar & MD, Essar Ports

How do you assess the performance of non-major ports in India? What are the recent key achievements of Essar Ports in cargo throughput?

Over the past one decade, the performance of non-major ports has registered an impressive growth rate. Despite the limitations raised
in international trade due to the Covid pandemic and the on-going geo-political issues, the volume of cargo moving through India's ports is steadily increasing. Non-major ports are also inching towards gaining a higher share of the market with a major chunk of traffic being shifted from major ports in the past few decades. The flexibility in concessions and agility in dynamic environment provides the non-major ports an edge. 

Essar Ports is one of the largest private sector port and terminal developers & operators in India by capacity and throughput. It has four operational terminals in India across Hazira (50 MT) and Salaya (20 MT) on the west coast (both in Gujarat), and one each in Visakhapatnam Port (24 MT, Andhra Pradesh) and Paradip Port (16 MT, Odisha) on the East coast. Our strategically placed terminals, along with integrated infrastructure enable strong business growth, giving our customers a competitive edge. Our terminals are well poised to handle over 50 MT of cargo in the current financial year ensuring optimum utilisation of infrastructure and room to cater to industry needs.

How do you look at the Exim cargo traffic growth at Indian ports that will require port capacity additions in future?

Despite the dip in total traffic handled in FY 21, Indian ports sector handled cargo in excess of 1,318 million metric tonnes in FY 22 which is an all-time high for industry. The growth has continued in FY 23. We have also seen an uptick at Essar Ports' facilities this year. India's EXIM trade has witnessed a steady growth and continues to indicate an upward trend. With the current geopolitical situations and external factors like Russia-Ukraine War, Sri Lanka crisis, high inflationary pressures, risk on world currencies, etc, Indian manufacturing and services sector is well poised to fill the growing gap -positioning India as the alternate and a region to depend with stability and good infrastructure. 

As India charts its way to US$ 5 trillion economy and more, with focus on manufacturing and services sector, it is expected there will be a huge demand of cost-effective logistics in the country. Indian EXIM trade is bound to grow leaps and bound in the current context. I believe this will need a three pronged strategy, i.e., effective utilisation of existing infrastructure, multi-modal evacuations with hinterland connectivity and steady increase in capacities to facilitate the growing demands of the economy.

How is Essar Ports supporting India's port expansion plans? How is the handling capacity and cargo traffic growing at your terminals?

Essar's current operational port terminal capacity in India is 110 MTPA which contributes to roughly 5% of India's port capacity. Essar Ports has been aggressively investing in technologies and developing environment-friendly and efficient handling systems. All our terminals have the capability to accommodate vessels upwards of 100,000 DWT and ensure most competitive vessel turnaround times in the Indian ports sector. The same complement Maritime India Vision 2030.

We are well poised to handle over 50 MT of cargo in the current financial year which ensures optimum utilisation of infrastructure and room to cater to industry needs. Our facilities are scalable with modular expansions planned to cater to growing needs of regions in which we operate.

What are the latest developments in digital solutions in port infrastructure?

The pandemic has changed and revolutionised the way industry operates. It has paved way for smart & digital ports of the future with advancements such as Hybrid working models, Automation, Artificial Intelligence (AI), Internet of Things (IoT), Drone technology, seamless connectivity, Blockchain technology and much more. Vessel traffic management systems with real time information sharing and visibility are now becoming essentials of day-to-day activities.

We at Essar have been investing extensively in developing and building state-of-the-art fully mechanised terminals that give our customers a competitive edge. Our terminals across India comprise cutting-edge latest IT infrastructure supplemented with VTS, which ensures round-the-clock availability and visibility. The fire-fighting & dust suppression systems (including cold fog systems) not only minimise pollution but also ensure environment-friendly cargo handling with strong focus on ESG. Investments are being undertaken in data analytics & systems which will further improve operational efficiency.

How does hinterland connectivity play a key role in the port operations? What are the challenges faced currently and what is the way forward for better connectivity in future?

One of the major challenges that is troubling the Indian infrastructure and the ports sector is poor hinterland connectivity via road and rail for ease of evacuation, thus affecting competitiveness and lowering nation's logistics efficiency. Seamless flow of cargo from port to corridor to hinterland could be achieved through integrated planning, with excellent road, rail and water hinterland connections in the port and its nearby areas. Therefore, it is essential to develop the transport corridors till the hinterland into multimodal hubs with appropriate warehouses and other services to meet the industry requirements. Key challenges for good hinterland connectivity are disintegrated planning, land acquisition issues and high costs and delay in approvals and implementation.

The PM Gati Shakti - National Master Plan to boost multimodal connectivity across India's major industrial hubs is a landmark move that promises to transform the country's logistics sector, bringing it in line with international standards paving way for an 'Atmanirbhar Bharat'. We just need to ensure its effective implementation.

What are your future expansion plans to cater to the growing traffic in bulk and containerised cargo?

At Essar, over the years we have made an investment of about INR 11,000 crore in developing world-class fully mechanised terminals to stay future-ready. All our terminals are scalable and are developed with the necessary infrastructure to enhance the capacity to cater to changing market requirements. 

While staying committed to our vision of providing world-class solutions by enhancing operational efficiency and undertaking modular expansions at our existing facilities, we are also actively diversifying our cargo and customer base. We are also open to new opportunities which the sector will offer in line with the proactive steps taken by the government.

Keeping technology and innovation at core, Essar Ports shall continue to offer services that create value for our customers throughout their supply chain.

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