India-based Essar Ports has entered a 30-year concession contract with the Government of Mozambique to develop a new coal terminal at Beira Port.

The terminal is expected to have an annual cargo handling capacity of 20 million tonnes and will be developed under a public private partnership (PPP) arrangement.

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A joint venture (JV) comprising Essar (70%) and Portos e Caminhos de Ferro de Moçambique (30%) known as New Coal Terminal Beira (NCTB SA) will implement the project on a design, build, own, operate and transfer (DBOOT) basis.

The terminal will be built in two phases, with each possessing a capacity of ten million tonnes per year.

The first phase of development is expected to see an investment of $275m and will include dedicated berths, along with mechanised and environmentally friendly systems.

Essar Ports CEO and managing director Rajiv Agarwal said: “It will not only boost coal exports from Mozambique and strengthen its economy, but also deliver significant direct and indirect benefits.”

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"The terminal is expected to have an annual cargo handling capacity of 20 million tonnes and will be developed under a public private partnership (PPP) arrangement."

The project is expected to boost Essar’s third-party cargo handling plans once completed.

Essar Ports currently has an annual cargo handling capacity of 140 million tonnes, and the company planning to increase this capacity to 194 million tonnes over the next few years.

Mozambique is currently estimated to have reserves of over 23 billion tonnes of coal, and this is expected to be used to address the needs of the steel and power industries of India, China, Japan and South Korea.

Additionally, NCTB is connected via rail to Mozambique’s coal mining belt in the Tete region.

Image: Essar Ports to develop a new coal terminal in Beira Port, Mozambique. Photo: courtesy of Essar.