Visakhapatnam, May 14 (IANS): Essar Ports on Thursday announced its taking over of the Visakhapatnam Port Trust's (VPT) iron ore handling complex on a build-operate-transfer (BOT) basis for a period of 30 years.

"Essar Vizag Terminals Ltd.(EVTL), a wholly owned subsidiary of Essar Ports, will comprise of three berths (two outer harbour berths and one inner harbour berth) with a combined capacity of 23 million tonnes per annum (MTPA) which will be developed in two phases," Essar said in a statement here.

EVTL signed the concession agreement with VPT a year ago for development and operation of three world class iron ore berths.

"EVTL has taken over the ore handling complex (OHC) of the VPT by making an upfront payment of Rs.185 crore. In addition, EVTL will also pay a revenue share to VPT," the statement added.

"We are sure that Essar will develop the (OHC) facility with latest state-of-the-art handling facilities and achieve higher loading rate thereby reducing the overall turn around by at least 50 percent," M.T. Krishna Babu, chairman, Vizag Port Trust, said in a statement.

"The project will be developed at a cost of Rs.1,200 crore over a period of three years, and will cover the upgradation of outer harbour berths I and II in the first phase and mechanization of inner harbour berths in Phase II," Essar said.

Vizag port received 55 percent of total iron ore handled by all major ports during the last financial year, which is a new record.

"Visakhapatnam Port Trust had handled close to 14 MT of iron ore during the financial year 2014, the highest by any port in the country," the statement said.

The port has already awarded work to expand the existing container terminal with a natural depth of 16.5 metres to Visakha Container Terminal Ltd, a joint venture of DP World and United Liners Agencies of India, at a cost of Rs.633 crore.