Adani ac­quires Dhamra Port for close to US$ 1 bil­lion

Cargo Talk - - Contents -

In a re­cent de­vel­op­ment, Gau­tam Adani-led Adani Ports and Spe­cial Eco­nomic Zone scooped up the strate­gic Dhamra port on the east coast of In­dia for US$ 940.41 mil­lion.

The com­pany signed a de­fin­i­tive agree­ment to buy the port, from a 50:50 joint ven­ture of Tata Steel and Larsen & Toubro, on a day when Naren­dra Modiled Bharatiya Janata Party won a mas­sive man­date in the gen­eral elec­tions.

The deal, cul­mi­nat­ing af­ter over one-and-a-half years of ne­go­ti­a­tions, is the largest port sec­tor deal in In­dia af­ter the 2005 ac­qui­si­tion of Pi­pa­pav Port in Gu­jarat by APM Ter­mi­nals from SKIL In­fra­struc­ture.

Dhamra port, one of the deep­est ports in east­ern In­dia, was awarded the rights by the Odisha govern­ment in 2004 to de­velop and op­er­ate for 30 years. The con­tract can be ex­tended for two additional pe­ri­ods of 10 years each.

The port com­menced op­er­a­tions in 2011 from two fully mech­a­nised berths ca­pa­ble of han­dling cok­ing coal, steam and ther­mal coal, lime­stone and iron ore. In Fis­cal 2014, Dhamra han­dled cargo of 14.3 mil­lion tonnes. It also has 63 km of pri­vate rail con­nec­tiv­ity.

For Adani, this has been a long, pa­tient wait but it is per­fectly aligned to his as­pi­ra­tions of be­com­ing a large player across both the east and west coasts of the coun­try with a string of pri­vate ports. The Bom­bay Stock Ex­change­listed Adani Ports and SEZ is 75 per­cent owned by Adani En­ter­prises, the flag­ship of Adani group. The com­pany owns and op­er­ates five ports, of which three— Da­hej, Hazira and Mun­dra—are in Gu­jarat.

Gau­tam Adani

Chair­man, Adani Group

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