After a period of strategic asset management and debt reduction, the Essar Group is  gearing up for a resurgence in the ports sector. Once ranked as India’s second-largest  private port operator by capacity, Essar Ports is now targeting the ambitious goal of establishing 400–500 million tonnes (mt) of port capacity by the year 2047. 

Ashish Rajgarhia, Executive Director of Essar Ports Ltd, shared that the group has  successfully eliminated its debt and is poised to seize the next wave of growth driven by  India’s port-led development. “We had to divest several assets as part of a broader strategy to reduce debt. That chapter is now behind us. Today, we stand on solid  financial ground, possess a deep understanding of the sector, and see significant  potential for expansion,” he remarked. 

Strategic Reset Following Deleveraging 

A few years back, Essar Ports managed approximately 228 mt of cargo capacity.  However, nearly 168 mt was divested alongside the sale of the group’s steel and refinery  operations to ArcelorMittal Nippon Steel and Nayara Energy, which is backed by  Rosneft. This included key port assets located in Vizag, Paradip, Hazira, and the Vadinar  oil terminal. 

Currently, Essar Ports operates around 60 mt of capacity across three facilities, in  addition to a 20 mt coal berth concession in Mozambique. Notably, all operational port  assets are free of debt and generate an annual EBITDA of nearly $175 million, laying a  robust foundation for future growth. 

Transitioning from Captive to Commercial Ports 

A significant element of Essar’s revitalised strategy is the transition from a primarily  captive port model to a more commercial and diversified framework. Previously, many  of Essar’s ports were constructed to serve its own industrial operations. This time, the  emphasis is on developing scalable facilities for third-party cargo handling.

The Salaya port in Gujarat, which currently serves as a captive coal berth for a group  power plant, is set to play a pivotal role in this transition. While the existing berth will  remain captive for now, Essar has plans to eventually transform it into a fully operational  commercial port. Additionally, the port is being integrated into the Indian Railways  network under the PM Gati Shakti scheme, enhancing connectivity to the hinterland. 

Plans for Domestic and Global Expansion 

Essar Ports’ growth strategy encompasses both domestic and international markets. On  the global front, it operates a 20 mt port facility in the UK associated with the Stanlow  refinery, with opportunities to commercialise unused capacity. In Indonesia, the group  manages a coal terminal linked to mines via a 75 km private road, opening avenues for  handling third-party cargo from local miners. 

In India, Essar is exploring participation in both upcoming and existing port projects,  including those at Paradip, Syama Prasad Mookerjee Port in Kolkata, Vadhvan port, and  initiatives promoted by the Andhra Pradesh government. The group is also bidding for a  dry bulk terminal at Deendayal Port. 

Beyond Ports: Developing a Comprehensive Logistics Platform 

Looking to the future, Essar Ports aims to extend its reach beyond port operations into  land-side logistics infrastructure. The group is assessing opportunities for a multi modal logistics hub or dry port in Dadri, Uttar Pradesh. 

“You can’t just be a port operator anymore. To remain competitive, you must evolve into  a comprehensive logistics player,” Rajgarhia stated. Essar plans to integrate ports,  inland container depots, and multi-modal logistics parks to create a holistic logistics  ecosystem. 

With India’s port capacity projected to increase significantly under the Viksit Bharat  vision, the Essar Group is confident that its refreshed, asset-light, and commercially  focused strategy positions it well to reclaim a substantial share of the sector’s future  growth.