Technology is enabling the digital ports of the future.

– Rajiv Agarwal

CEO and Managing Director, Essar Ports

Ramping up cargo capacities across facilities has been a thrust area for Essar Ports. What is the capacity you are targeting and what do you expect the investments to be? What factors will spur capacity ramp-up at your terminals?

Essar Ports specialises in development and operations of Ports and Terminals for handling dry bulk, liquid, break bulk and general cargo. It has four operational terminals spread across the east and west coasts of India, with two in Gujarat (Hazira and Salaya) on the west coast, and one each in Andhra Pradesh (Visakhapatnam) and Odisha (Paradip) on the east coast. Current operational port terminal capacity in India is 110 MTPA.

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 open to new opportunities which the sector will offer in line with the proactive steps taken by the Government. Increased domestic consumption, boost in exports, enhanced capacity utilisation in manufacturing and diversification are expected to play a pivotal role. 

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

What do you think are the growth drivers for the ports sector?

The key for any successful economy is robust infrastructure with an equally strong supply chain. Ports infrastructure, particularly, has a significant influence on a nation’s GDP, overall EXIM, and Industry competitiveness. They evolve rapidly to cater to the growing global trade requirements.  As the Nation unlocks and comes out of the pandemic, the demand and traffic at ports is expected to increase substantially, enabling the economy to gallop ahead! In addition, the journey to USD 5 Trillion will see boost in EXIM cargo, coupled with higher manufacturing levels. Indian Ports Sector and Essar Ports are well-positioned to cater to the growing needs of the Nation. 

The journey is expected to see dynamism at port facilities across the country. The sector is expected to move towards enhanced capacity utilisation, shift in cargo patterns, need for eco-friendly and mechanised handling, deeper drafts and larger parcels, and quicker turnaround with real time visibility of cargo. Accordingly the investments would flow in to cater to the growing needs of a growing economy.

How do you plan to improve capacity utilisation at your Ports & Terminals?

In the current environment where commodity prices and shipping freights have sky-rocketed, there is a need for ports & terminals to turnaround the ships as fast as possible, thereby enabling savings and lower logistics cost for customers. Our facilities are well-placed to provide this.  Customers now  their cargo to arrive earlier than usual and have better visibility; all at lower costs. Basis the surplus capacity and terminal availability, one can safely plan overall logistics without thinking of re-routing the cargo.

As India navigates itself to become a USD 5 trillion economy, increased domestic consumption, boost in exports, enhanced capacity utilisation in manufacturing, and diversification of cargo and customers are expected to play a pivotal role in enhancing capacity utilization and traffic at our Terminals. 

With more than 50 years of rich experience – Essar has pioneered several models that would transform logistics, and set a new normal for the industry. How do you rate the performance of your terminals against the industry average in the ports sector?

The financial year 2021 witnessed decline by 5.5% at Indian ports, with a capacity utilization of ~50%. This was predominantly on account of the pandemic during the first two quarters. However, subsequent to that, there was an uptick in economic activity has which triggered a boost in volumes and operations to pre-Covid levels.

Despite the pandemic and challenges faced, our facilities have remained fully operational and we have seen the interest of trade strengthening at our facilities. We have seen a capacity utilization of 45% – 50% at our terminals, which enable lower waiting time at our terminals. As a matter of fact, our Vizag Terminal – India’s largest ore handling complex – posted a growth of 7% in FY21 with record volumes, despite the industry showing a downward trend.

Our facilities have played a crucial role in ensuring smooth operations of our customers’ supply chains. The handling of cargo at Essar Ports has been in compliance with the guidelines set by the government and in close coordination with the authorities.

What infrastructure facilities do you plan to add at your facilities over the five years, especially in terms of equipment?

Since inception, Essar has been investing extensively in developing and building state-of-the-art mechanized terminals with an aim to deliver competitive turnaround times in the most environment-friendly manner. Technology is enabling the digital ports of the future with advancements such as Automation, Internet of Things, Drone technology, Artificial Intelligence, Blockchain Technology and others. The same are going to support both predictive and planned maintenance.

The focus areas at the terminals of Essar Ports include:

• State-of–the-art IT systems that ensure round-the-clock uptime and monitoring of our facilities/systems
• Fire-fighting & dust suppression systems, including cold fog systems that minimise pollution and are environment-friendly
• Data analytics that continuously improve operational efficiency
• Equipment/ Mechanized Systems like:
• High speed Quay Cranes
• Intermediary movers
• Integrated conveying systems
• Wagon Tipplers & Wagon Loading systems
• Stackers, Reclaimers & Stacker-cum-Reclaimers

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