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Published: 30 May 2012      

Essar/Antwerp form strategic partnership

Following the signing of a Memorandum of Understanding (MoU) by the two companies in February 2011, Port of Antwerp International (PAI), the international investment arm of the Antwerp Port Authority, has invested Rs1.75B (US$31.1M) in, and formed a strategic partnership with, Essar Ports Ltd, one of India’s largest private sector port companies.

The new partnership will see the Antwerp Port Authority and Essar Ports collaborate in the areas of training and consultancy services, port planning, traffic flow, quality and productivity improvement and mutually assist in the growth in the volume of their respective businesses.

PAI said its investment in Essar Ports is long-term and strategic in nature, focusing on the commercial relationship between the two companies and mutually enhancing their productivity, skill set and performance. PAI will have the right to nominate a director on the Board of Essar Ports.

Essar Ports provides port and terminal services for liquid, dry bulk, break bulk and general cargo with an existing aggregate capacity of 88 mtpa across two facilities located at Vadinar and Hazira in the state of Gujarat on India’s west coast.

The company is in the process of increasing capacity to 158 mtpa with expansion projects at Vadinar and Hazira, a new port at Salaya in Gujarat and two terminals at Paradip in the state of Orissa on the east coast of India.

Key elements of strategic partnership are the recognition of the attractiveness and potential of the port assets of Essar Ports, growth of port traffic between the Port of Antwerp and Essar’s ports, access to relationships with port operators and port-based companies operating in the Port of Antwerp and the development of world class port facilities with a focus on quality, productivity and the environment.

“Essar Ports is a highly regarded, strong and reliable partner with a lot of know-how in India. We will rely on them for the development of port activities in India, one of the strategic regions of our daughter company PAI,” said Marc Van Peel, president of the Antwerp Port Authority.

“We are extremely happy that the Port of Antwerp has partnered with us. This partnership will promote growth of port traffic between the Port of Antwerp and ports of Essar and help us in developing world class port facilities,” added Rajiv Agarwal, managing director of Essar Ports.


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