Essar Shipping Ltd., now rebranded as Essar Shipping Ports & Logistics Limited, is a significant player in the global energy shipping industry, originating from India. Established in 1945 and formally incorporated in 2010, this corporation has a history deeply rooted in the shipping sector. The company is listed on the Bombay Stock Exchange, reflecting its prominent business status in India. With its headquarters located in Mumbai, Essar Shipping Ports & Logistics Limited continues to be a key entity in maritime transportation. Recently, there has been notable activity involving the company in the shipbroking market. European shipbrokers have reported the sale of a veteran Indian supramax vessel by Essar Shipping Ltd. The vessel in question is the Japanese-built MV Amarnath, a supramax bulk carrier with a deadweight tonnage (DWT) of 53,200, constructed in 2004. The sale price of MV Amarnath is reported to be $7.75 million. However, there seems to be some divergence in opinions among shipbrokers regarding the seller’s identity. Despite this, there is a consensus that the MV Amarnath has been acquired by an undisclosed European shipowner. This transaction indicates Essar Shipping’s ongoing engagement in the global shipping market and its influence in the maritime trading domain. 28-January-2024
The recent sale of Essar Shipping Ltd.’s fleet of six mini-capesize bulk carriers marks a significant development in the maritime shipping industry. Essar Shipping Ltd., headquartered in Mumbai, India, had previously indicated its intention to sell these vessels, which are relatively unique in the market due to their size and age. Each of these carriers has a deadweight tonnage (DWT) of 106K and was constructed between 2011 and 2012. This fleet sale has now been confirmed by multiple shipbrokers, with the vessels sold en bloc for a total sum of $81 million. The ships, named MV Kamlesh, MV Ishwari, MV Shravan, MV Kishore, MV Ashok, and MV Arun, were built by STX Dalian. The buyer, ArcelorMittal, is a prominent entity in the steel and mining sector. ArcelorMittal’s traditional approach in the shipping sector has been to focus on chartering, operating, and managing ships, rather than owning them. This approach is known as an asset-light shipping profile. However, the acquisition of these six bulk carriers indicates a strategic shift and expansion of ArcelorMittal’s fleet, complementing the 16 bulkers they already own according to shipping databases. This deal highlights a strategic move by Essar Shipping Ltd. to divest these assets, and simultaneously, it reflects ArcelorMittal’s expansion in its shipping capabilities. It underscores the dynamic and evolving nature of the maritime shipping industry, where strategic asset management plays a crucial role in responding to market trends and opportunities. 17-April-2021
Indian shipowner Essar Shipping Ltd has announced its strategic approach in response to the International Maritime Organization’s (IMO) 2020 regulations, which aim to reduce sulfur emissions from ships. The company plans to implement a combination of retrofitting certain vessels with scrubbers and using low-sulphur fuel oil (LSFO) for compliance. By April or May 2020, Essar Shipping Ltd intends to equip four of its ships with scrubbers. This retrofitting will be undertaken on their only very large crude carrier (VLCC), the 302K DWT MT Smiti, built in 2005, and three mini-capesize bulk carriers. The remaining fleet, comprising 12 ships, will adapt to the new regulations by using compliant bunkers. Essar Shipping Ltd expects the investment in scrubbers to be recouped within 18 to 24 months, contingent on the price differential between high-sulphur fuel and LSFO. However, the company acknowledges the inherent uncertainties in maritime forecasting due to numerous variables. These include demand and supply dynamics of tonnage, the number of ships currently in trade, scrapping rates, the number of vessels equipped with scrubbers, new ship orders, and the specific commodity cycles of different vessel types. Additionally, Essar Shipping Ltd pointed out that the shipping industry’s demand for deadweight tonnage is influenced by broader economic conditions. During economic recessions, the reduced demand for commodities leads to decreased production, which in turn lowers the shipping industry’s demand for carrying capacity. This nuanced understanding of market dynamics reflects Essar Shipping Ltd’s comprehensive approach to navigating the challenges and opportunities presented by the IMO 2020 sulfur cap. 12-November-2019
Mumbai-based Essar Shipping subsidiary, Essar Ports, is embarking on a significant expansion project with a planned investment of $500 million. This substantial financial outlay is aimed at enhancing two of its port facilities in India and establishing a new coal terminal in Mozambique over the next 30 months. Rajiv Agarwal, the Managing Director of Essar Ports, shared details about this ambitious plan. The investment will focus on increasing the capacities of the Hazira and Salaya ports, both located on India’s west coast. Additionally, Essar Ports will be constructing a new coal handling terminal in Mozambique. This project marks Essar Shipping Ltd’s first foray into an overseas port operation, expanding its global footprint beyond its existing four ports in India. The Mozambique facility is particularly notable as it will be connected to coal mines through a newly built 550 km rail link, enhancing the logistics and transportation efficiency for coal exports. Essar Ports also operates two other port facilities on the east coast of India, located at Vishakhapatnam and Paradip. This expansion reflects Essar Ports’ strategic intent to strengthen its position in the maritime industry and to capitalize on the growing demand for port and terminal services in key locations, both domestically in India and internationally. 7-January-2018Essar Shipping Ltd, a prominent private Indian shipowner, has set its sights on expanding its fleet with a focus on liquid bulk carriers. CEO Ranjit Singh, in a conversation with BusinessLine, a local media outlet, outlined the company’s current acquisition interests. Essar is actively looking to purchase a panamax bulk carrier, an MR tanker, and a suezmax, with a specific condition that these acquisitions come with long-term charter agreements. Presently, Essar Shipping Ltd operates a diverse fleet of 14 vessels, predominantly bulk carriers. This fleet consists of one capesize bulk carrier, six mini capesize bulk carriers, one panamax bulk carrier, two supramaxes bulk carriers, two handymaxes bulk carriers, and two very large crude carriers (VLCCs). The average age of Essar Shipping Ltd’s fleet is around 12 years. As part of its fleet renewal strategy, Essar plans to decommission its 25-year-old capesize bulk carrier within the next 18 months. This vessel will be replaced with a younger panamax bulk carrier, as part of the company’s commitment to maintaining a modern and efficient fleet. This decision aligns with Essar Shipping Ltd’s ongoing efforts to optimize its fleet in response to market demands and technological advancements in the shipping industry. 10-December-2017
Russian energy giant Rosneft has successfully finalized the acquisition of a 49.13% stake in Essar Oil, an Indian oil company, from Essar Energy Holdings and its affiliates. The transaction is valued at approximately $12.9 billion. In a parallel move, an investment consortium consisting of Trafigura and UCP has also completed the acquisition of an identical 49.13% share in Essar Oil. This acquisition is notable for being the largest foreign investment in India to date, as well as the biggest outbound deal from Russia. Rosneft has highlighted the significant potential for development and synergy that Essar Oil’s assets will bring, especially in enhancing the company’s presence in the Asia Pacific markets. Igor Sechin, Rosneft’s Chief Executive Officer, remarked on the significance of this acquisition, stating that it marks a new chapter for Essar Oil. The company, along with its partners, plans to significantly improve Essar Oil’s financial performance and, over the medium term, aims to develop its assets further. Sechin emphasized that this deal is not just a milestone for Essar Oil but also a significant achievement for Rosneft, marking its entry into the high-potential and rapidly growing Asia Pacific market. The acquisition of a stake in the Vadinar refinery, in particular, is expected to create unique synergy opportunities with Rosneft’s existing assets and improve the efficiency of supply to other countries in the region. 20-August-2017
Mumbai-based Essar Shipping Ltd is currently engaged in discussions to acquire four secondhand panamax bulk carriers. This move is aimed at catering to the rising demand at the Hazira Steel plant. Sources indicate that Essar Shipping Ltd is looking to finalize the deliveries of these vessels in the second quarter of 2017, provided that the pricing is favorable and the necessary financing arrangements can be secured in a timely manner. Furthermore, Essar Shipping Ltd is also exploring the option of taking ships on a bareboat charter as part of its strategic approach. The primary motivation behind this potential acquisition is to support the increased demand for iron ore at the Hazira Steel plant. The plant relies on iron ore supplies from Paradip and Vizag ports, which are located on India’s east coast. Should this acquisition proceed as planned, it will significantly expand Essar Shipping Ltd’s fleet. The addition of these four vessels will increase the size of the company’s fleet from the current 14 ships to a total of 18, reflecting Essar Shipping Ltd’s commitment to growth and its strategy to enhance its operational capacity in response to the demands of its steel plant. 5-February-2017
In a move that marks a significant crossover from the private to the public sector, New Delhi has appointed Anoop Kumar Sharma, the Managing Director of Essar Shipping, as the head of the state-run Shipping Corporation of India (SCI). This decision is notable for being a rare instance where the Indian government has selected a leader from the private sector to helm a state-owned enterprise. The top position at SCI had been vacant for over a year, with BB Sinha, a director at the corporation, serving as the temporary head for the past 12 months. Sharma has been awarded a three-year contract to lead SCI. His acceptance of this role is particularly remarkable given that it reportedly involves a substantial reduction in pay, with some local media outlets suggesting as much as an 80% decrease in his salary compared to his private sector earnings. Sharma’s career in shipping is extensive and includes significant prior experience with Shipping Corporation of India (SCI). Born in 1960 in Jhansi, Uttar Pradesh, he moved to Mumbai as a teenager and began his maritime training at Training Ship T.S. Rajendra. Following his training completion in 1978, he joined Shipping Corporation of India (SCI), a major training ground for Indian shipping talent. Sharma sailed on SCI’s vessels until late 1992 and transitioned to shore-based roles the following day after the demolition of the Babri Masjid, an event that led to significant political unrest and violence in India. Over the next 16 years, Sharma accumulated a wealth of experience in various departments at Shipping Corporation of India (SCI). In 2008, he joined Essar Shipping, India’s third-largest shipping line, and ascended to the roles of CEO and Managing Director by April of the previous year. His appointment as the head of Shipping Corporation of India (SCI) signifies not only his personal professional achievements but also reflects a broader openness in the Indian government’s approach to leadership in public sector enterprises, recognizing the value of diverse experience and expertise from the private sector. 20-August-2016
Capt. Anoop Kumar Sharma has assumed the position of whole-time director and CEO at Essar Shipping Ltd, succeeding A R Ramakrishnan who retired as managing director on March 31, 2015. Since August 2008, Capt. Sharma has served as CEO of Essar Shipping Ltd, a shipowning company based in Mumbai, and will now inherit the responsibilities of A R Ramakrishnan, reporting directly to the Board of Directors. A graduate of Narsee Monjee Institute of Management Studies in Mumbai and a Fellow of the Institute of Chartered Shipbrokers in London, he is also part of the governing council at Narottam Morarjee Institute of Maritime Studies. Previously, Capt. Sharma spent 16 years at the state-owned Shipping Corporation of India (SCI), where he held the role of senior vice-president in the ship chartering division. In this role, he was tasked with seeking worldwide business opportunities for various types of vessels including bulk carriers, tankers, and containers, as well as cultivating new business ventures. 1-April -2015