India’s largest port developer and operator, Adani Ports and Special Economic Zone Ltd (APSEZ), made a significant move by signing a concession agreement with the Deendayal Port Authority (DPA) to develop and operate Berth No 13 at Kandla’s Deendayal Port in Gujarat. According to Adani Group’s press release, this strategic expansion underlines the group’s commitment to enhancing its presence on the western coast of India.
Adani Ports and Special Economic Zone Ltd (APSEZ) has signed a concession agreement to develop and operate Berth No. 13 at Deendayal Port, Kandla, Gujarat. This 5.7 MMT annual capacity berth will handle multipurpose clean cargo, expanding APSEZ's presence on the western coast.
— Adani Group (@AdaniOnline) September 11, 2024
The Letter of Intent (LOI) for the agreement was received by Adani Ports in July 2024. This agreement grants APSEZ the rights to develop the berth under a 30-year concession period using the Design, Build, Finance, Operate, and Transfer (DBFOT) model.
The berth is 300 meters long and offers an annual capacity of 5.7 million metric tonnes (MMT). It will be dedicated to handling multipurpose clean cargo, including containers. The berth will become operational by FY27, diversifying Adani Ports’ capabilities at Deendayal Port, where it already handles dry bulk cargo.
Ashwani Gupta, Whole-time Director and CEO of APSEZ, said in a statement, “This development is a significant step for us as we aim to provide enhanced service to our customers in Gujarat and North India. The multipurpose clean cargo handling at Berth No. 13 will allow us to cater to a broader range of cargo requirements, reinforcing our position on the western coast.”
Adani Group’s major acquisition in Odisha’s Gopalpur Port
Apart from the western coast expansion, Adani Ports has also marked its presence on the eastern coast of India by finalising the acquisition of Gopalpur Port in Odisha. The Odisha Cabinet has approved the transfer of 95% of equity shares of Gopalpur Port from Shapoorji Pallonji Port Maintenance Pvt Ltd and Orissa Stevedores Ltd to Adani Ports.
Odisha Cabinet nod to transfer Gopalpur Port's 95% equity shares to Adani Ports #Odisha #OdishaCabinet https://t.co/VNtkzJHbJS
— OTV (@otvnews) September 12, 2024
The value of this acquisition is around Rs 3,500 crores. It will enable APSEZ to transform Gopalpur Port into an all-weather deep seaport under the Public-Private Partnership (PPP) model known as Build Own Operate Share Transfer (BOOST).
Stretegic importance of Gopalpur Port
Gopalpur Port holds strategic importance due to its proximity to the upcoming green hydrogen and green ammonia plants at the TATA Special Economic Zone (SEZ), which are predominantly export-oriented. This acquisition positions Adani Ports to leverage the growing demand for export facilities linked to these green energy projects.
Strengthening presence in Odisha with two major ports
With Gopalpur Port, Adani Ports will now control both major developing ports in Odisha, as it has already established its presence at Dhamra Port. Notably, the deal for Gopalpur Port was finalised on 26th March 2024 during the tenure of the former state government led by Chief Minister Naveen Patnaik. The newly formed government under the Bharatiya Janata Party (BJP) has now given the required go-ahead, clearing the path for Adani Ports to proceed with the expansion plans.
