Essar Plans to Add $275 Million Mozambican Port to African Portfolio

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--As part of its expansion plans into Africa, the Essar Group (Bombay, India) is planning to set up a 10 million-ton capacity port in Mozambique with a capital investment of $275 million. The port facility will be used to export products from Zisco, a Zimbabwean iron and steel company Essar acquired in 2010, from Zimbabwe to India. Essar invested $750 million for a 56% stake.

The port project development is being undertaken by the subsidiary Essar Africa Holdings and is not part of the group's Essar Ports. A company executive said that the project was currently on the drawing board. The group looked at various growth opportunities, but is not commenting on specifics at the moment.

The Mozambican port will add to the mounting number of businesses the company has on the African continent. Essar Energy (OTC:ESSRF) holds 50%, has telecom interests in a Kenya Petroleum refinery in Mombasa, and hosts telecom operations in Kenya under the brand name Yu, with more than million subscribers. For related information, see October 9, 2012, article - Kenya's Refinery Plans Expansion to 88,000 Barrels per Day.

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