ArcelorMittal Nippon Steel To Build New 65 Million Tonne Captive Port For Hazira Steel Plant: Report


ArcelorMittal Nippon Steel India Ltd (AMNS) is reportedly planning to construct a new deep draft captive facility at Suvali in Gujarat’s Surat district.

The move comes after AMNS purchased 25 million tonne capacity captive port at Hazira from Esaar Group several months ago.

The new facility will be able to handle 65 million tonne of in-house cargo required by the Hazira plant after expansion. The new captive port is planned to meet the steel mill’s needs as it expands from 10 mt to a larger capacity.

The captive port at Hazira was not included in the AMNS’ purchase of Essar Steel under India’s bankruptcy law for Rs 42,000 crore.

The dispute over the rights to the captive port was resolved last year with AMNS acquiring the 25 million tonne facility and a 270 MW power plant at Hazira, as well as the 12 mt berth at Paradip Port from Essar Group for $2.05 billion (around Rs16,500 crore).

The proposed captive port is set to cater to 60 million tonne of cargo, encompassing bulk, break bulk and finished goods, as well as 5 mt of liquefied natural gas (LNG).

It will have 8 berths capable of supporting Capesize vessels of 180,000 DWT across three berths while four berths will be able to dock Supramax ships of 55,000 DWT. The proposed captive port, spread across an area of 331 hectares with a cargo storage area of 185 hectares, will reportedly handle limestone, dolomite, iron ore and steel products such as slab, pipes, and flat items.

The planned new captive port is located on the northern side of the steel mill while the existing captive facility is on the southern side.

AMNS’s move to establish a new captive port in Suvali coincides with Adani Ports and Special Economic Zone’s (APSEZ) plan to expand the capacity of its port, located just a few kms away, from 84 million tonne to 234 million tonne with an investment of more than Rs 14,000 crore.