Essar Shipping & Logistics Limited (ESLL) has contracted to acquire six modern Mini Cape Bulk Carriers of 103,664 DWT each with an option to acquire three more of such vessels. The order for building the vessels has been placed on STX (Dalian) Shipbuilding Co., Ltd., China. The estimated cost of the vessel is USD 65 million each (total cost of USD 390 million for six vessels). The vessels are expected to be delivered between July 2011 and January 2012.

These double-bottom vessels will be built conforming to the standards of the American Bureau of Shipping. It will incorporate futuristic design and the latest technology. The ships will be environment-friendly and comply with the latest and the most stringent IMO regulations. The vessels will have a length of 253.5 m, a beam width of 43.0 m and a loaded draft of 13.60 m.

ESLL envisages tremendous business potential for these vessels as many steel plants and power plants are being planned in Asia and South East Asia. The size of the ships is compatible to be deployed with various existing and new steel mills and power generation plants in India and Asia for their iron ore and coal transportation requirements.

In September this year, ESLL had placed an order with ABG Shipyard Limited, India for acquisition of six modern new-building geared Supramax Bulk Carriers at a total cost of USD 210 million for six vessels. These vessels will be delivered between December 2009 and
March 2011.

This is line with the company’s strategy to strengthen its bulk carrier fleet with modern vessels as the world trade is continue to grow with the increased economic activities

ESLL has a total fleet of 28 vessels with a DWT of 1.5 million DWT. This comprises bulk carriers, capsize vessels, crude carriers, VLCC, tugs, DSV, product tanker and dredgers.

Essar Shipping & Logistics Limited (ESLL) is a part of Essar Global Limited. ESLL has five operating companies:

• Essar Oilfields Services Limited (EOSL): Focuses on offshore and onshore drilling activities.

• Vadinar Oil Terminal Limited (VOTL): Invested in crude oil and petroleum product terminals. VOTL has set up a crude oil and petroleum product terminal capable of handling 32 million tones of crude oil, and tankages for crude oil and product storage and handling facility at Vadinar, Gujarat, India.

• Essar Logistics Limited (ELL): In the business of logistics management, trans-shipment and cargo handling services.

• Essar Shipping Limited (ESL): ESL owns and operates 27 ships including VLCCs, product tankers and bulk carriers. Essar Shipping is the first Indian shipping to be certified for ISO 14001. It is also the first Indian company to operate in international waters.

• Essar Bulk Terminal Limited (EBTL): It specializes is building and operating bulk terminals. It also undertakes dredging operation.