Adani Group to buy 70pc stake in India's Krishnapatnam port for US$770m
A STAKE of up to 70 per cent in Krishnapatnam port in the Indian state of Andhra Pradesh is to be acquired by Adani Ports and Special Economic Zone (APSEZ) for INR55 billion (US$770
A STAKE of up to 70 per cent in Krishnapatnam port in the Indian state of Andhra Pradesh is to be acquired by Adani Ports and Special Economic Zone (APSEZ) for INR55 billion (US$770.58 million), in part to realise its goal of handling 400 million tonnes of cargo by 2025.
The stake will be purchased from Krishnapatnam Port Company, which manages the deepwater port that currently handles 40-45 million tonnes of cargo from ten berths, including a 1.2 million TEU-capacity container terminal. The port has a draft of 18.5 metre, which is capable of accommodating a fully loaded capesize vessel with a capacity of 200,000 tonnes.
The proposed takeover of Krishnapatnam port will provide APSEZ access to the waterfront area of 12.5 kilometres and a transit storage space of 6,800 acres, reported London's Ship Technology.
APSEZ CEO Karan Adani said: 'We are targeting 400 million tonnes of volumes by 2025. We are looking at close to INR25 billion crore of CapEx every year.
'This takes care of the 400 million tonnes, which I talked about, and does not include any acquisitions that we may be planning for. We are continuously on the lookout for stressed assets that are available at discounted rates.'
The stake in Krishnapatnam port will mark APSEZ's third acquisition since 2014. It acquired Dhamra port and Kattupalli port in 2014 and 2016, respectively.
APSEZ manages ten ports and terminals, including Mundra, Dahej, Kandla and Hazira in Gujarat; Mormugao in Goa; Dhamra in Odisha; Visakhapatnam in Andhra Pradesh; and Kattupalli and Ennore in Tamil Nadu.
Together, these ports and terminals can manage 395 million tonnes of cargo.