Essar Ports Limited (EPL) has signed an agreement with the Mozambique government for developing a new coal terminal at the Beira Port in Mozambique.
EPL will execute the project on Design, Build, Own, Operate and Transfer (DBOOT) basis through its subsidiary, New Coal Terminal Beira SA ( which will own 70% stake) and Portos e Caminhos de Ferro de Moçambique (which will own the rest 30% stake).
The new terminal will enhance the coal handling capacity in Mozambiuque by 20 MnTPA in two phases of 10 MnTPA each.
The terminal will have dedicated rail connectivity to the Tete region—the coal mining belt in Mozambique. The first phase will involve developing dedicated berths and state- of-the art mechanized and environmental friendly systems, with an investment of USD 275 million.
The terminal is significant in view of the coal export potential of the country. Mozambique has around 23 BnT of coal reserves, and exports coal to various industries, like steel and power in India, China and South Korea.
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