Published on February 16th, 20170
Adani Ports Eyes Expansion on Eastern Coast with Bhavanapadu and Kamarajar Deals
Adani Ports and Special Economic Zone Ltd (APSEZ) is looking to expand capacity on India’s eastern seaboard by emerging the only bidder to put a price bid for developing a greenfield port at Bhavanapadu in Srikakulam district of Andhra Pradesh.
India’s biggest private port operating firm owned by billionaire Gautam Adani, is also one of the top contenders for building a new marine liquid terminal, the second at Kamarajar Port located at Ennore near Chennai.
By participating in the two potential expansion opportunities, Adani is betting on prime minister Narendra Modi’s port-led development plan to drive growth in Asia’s third largest economy.
“APSEZ has received security clearance for the Bhavanapadu port project from the union government,” a spokesman for the Ports Department of Andhra Pradesh, said. “The price bid submitted by APSEZ will be forwarded soon to the state cabinet for approval,” he added.
Bhavanapadu, located some 80 nautical miles north east of Visakhapatnam Port, run by the union government, will be constructed with an investment of about Rs3,400 crores. The private port operator will have an initial concession period of 30 years which can be extended by another 20 years.
The new port will be designed for handling 50 million tonnes (mt) of cargo a year, though, in the first phase, it will handle 15 mt.
The new port’s hinterland comprises Srikakulam and Vizianagaram districts of Andhra Pradesh and mineral rich states of Chhattisgarh, Jharkhand, Madhya Pradesh and Southern Orissa. It will cater to cargo such as agriculture produce, marine and mineral resources.
APSEZ is one of the four bidding groups short-listed by Kamarajar Port Ltd for the Rs 400 crore, 3 mt-capacity marine liquid terminal.
Kamarajar Port Chairman M A Bhaskarachar told India Tradeways that the port, one of the 12 owned by the union government, has asked the four pre-qualified bidders to put their price quotations.
“We are planning to award the project by March,” he said.
Winning the Bhavanapadu and Kamarajar contracts would help APSEZ bolster its presence on the country’s eastern coast by adding to its existing port/facilities at Dhamra in Orissa, Vizag port in Andhra Pradesh, Kattupalli Port and a container terminal being constructed at Kamarajar Port, both in Tamil Nadu.
Across Gujarat, Goa, Andhra Pradesh and Odisha, APSEZ currently runs eight ports or terminals with capacity to handle a combined 338.5 mt of cargo. The capacity expansion planned at the existing ports or terminals located at Mundra, Tuna, Dahej, Hazira, Mormugao, Dhamra, Vizag and Ennore will add a further 240 mt, taking the total to 578.5 mt.
For the quarter ended December 2016, APSEZ’s net profit jumped 26% to Rs 848 crore from Rs 675 crore a year earlier. During the third quarter, the company’s consolidated operating income rose 32% to Rs 2,236 crore from Rs 1,696 crore a year ago.
The consolidated cargo handled by the port company jumped 8% to 41 mt from 38 mt a year earlier. Container cargo handled by the port company grew 26% during the third quarter.
For the nine months of the current financial year, APSEZ’s net profit increased by 38% to Rs 2,748 crore from Rs 1,991 crore a year ago. The consolidated operating income rose 20% to Rs 6,245 crore from Rs 5,219 crore a year earlier.
During the nine months, the company handled 126 mt of cargo, up 11% from 114 mt handled last year.
“Our strategy to diversify our cargo mix and focus on high value cargo continues to yield positive results. Like last quarter, the continued outperformance in cargo volumes is backed by Healthy growth in our newer ports namely Hazira, Dhamra and Kattupalli. Operational efficiencies and our efforts to change the mix of bulk cargo beyond coal has resulted in all-round growth in our financial numbers,” Karan Adani, the chief executive officer of APSEZ, said.
APSEZ loaded a combined 152 mt of cargo for the year ended March 2016, clocking a growth of 5% over the 144 mt handled a year earlier.Share Follow