Essar and Antwerp ally for growth

Mr Rajiv Agarwel, managing director of Essar Ports, said: “The partnership will promote growth of port traffic and help us in developing world class port facilities with focus on quality, productivity and environment.”

The partnership will see PAI investing around Rs175 crore (USD$31.5m) in global depository shares of Essar Ports – forming approximately 4% of its diluted equity share capital.

PAI also have the right to nominate a director to sit on the board of Essar Ports, who will reportedly be Mr Jan Adam, CFO, Port of Antwerp.

The relationship will focus on commercial aspects and Essar will gain access to port operators and port based companies operating in the Port of Antwerp. Above all the alliance will serve as a “breeding ground for future development”, according to Antwerp Port Authority.

And it’s a strategic move on both sides. Essar Ports is clearly focused on development – two terminals are currently being developed at Paradip, a new dry bulk terminal is being set up at Salaya and there are plans to expand Hazira port’s capacity. Antwerp on the other hand can offer Essar plenty of knowledge and expertise in terms of development and strategy going forward.

Besides India, PAI is also reportedly considering similar alliances in West Africa, Brazil and South East Asia – an agreement has already been signed with Rent A Port and the Omani Government to develop a new port in Duqm.