Adani Ports to expand ops, eyes 500 mt throughput by 2025

In a bid to become the preferred logistics partner, Adani Ports and Special Economic Zone (APSEZ) plans to continue expanding its port cargo along with focus on logistical services to grow the proportion of its revenue stream.

In its annual report for FY21, the company said it at present, enjoys a 25 percent market share of India’s exim cargo. “We intend to retain this position by achieving 500 million tonne cargo throughput by 2025 and will lead to enhancing our market share of the Indian market to 40 per cent,” said the company. In FY21, APSEZ handled a cargo volume of 247 million tonne, growth of 11 percent from last year, as against a 5 per cent decline registered by all India ports.

With a clear focus to take the company’s return on capital employed (ROCE) to over 20 percent by 2025, as per the annual report, the Gautam Adani-led company reported an ROCE of 12 percent in FY21. “Our maturing ports and newly acquired ports are growing in tandem as twin growth engines in enhancing free cash generation,” said the company.

The Dhamra and Kattupalli ports, acquired in 2015 and 2018 respectively, have turned around with positive returns on investments, the company said.

During the year, the company announced four acquisitions — Krishnapatnam Port, Gangavaram Port, Dighi Ports and Sarguja Rail Corridor (SRCPL) — thus improving East Coast - West Coast parity. It also announced the setting up of a container terminal at Colombo port.