Posted on October 7, 2024
Adani Ports and Special Economic Zone (APSEZ) has reported a notable 7% year-on-year increase in cargo volumes, handling 183 million metric tonnes (mmt) from April to August 2024. This growth reflects the company’s resilience, even as operations faced significant disruptions, including a workers’ strike at Gangavaram Port and severe weather conditions affecting cargo handling at Mundra and Tuna ports in August. The strike, which persisted from April to May, was resolved by June, allowing for a return to normal operations.
Despite these challenges, APSEZ remains optimistic about meeting its fiscal year 2025 target of 460-480 mmt. The company is actively expanding its capacity and reinforcing its strategic presence. Recently, APSEZ signed a concession agreement with the Deendayal Port Authority to develop a new berth at Kandla, Gujarat, projected to have a capacity of 5.7 mmt. This 300-meter-long berth is anticipated to become operational by FY27, enhancing the port’s capabilities.
Additionally, APSEZ plans to acquire an 80% stake in Singapore-based Astro for USD 185 million. This acquisition will increase its fleet to 168 vessels, allowing APSEZ to enhance its operations across the Middle East, India, Far East Asia, and Africa. The strategic move aims to bolster APSEZ’s market presence in these key regions.
Looking ahead, APSEZ is targeting an ambitious 11% growth in cargo volumes from FY24 to FY26, with projected compounded annual growth rates (CAGR) of 14% in revenue, 15% in EBITDA, and 22% in profit. The company’s diversified portfolio of ports along India’s eastern and western coastlines, coupled with a varied cargo mix, positions it well to outpace the overall growth of India’s cargo volumes.
APSEZ is steadfast in its vision to become India’s largest integrated transport utility and the world’s largest private port operator by 2030. With ongoing expansion plans, the company is set to play a significant role in India’s logistics landscape and overall cargo volume growth in the coming years. The resilience demonstrated amidst temporary setbacks, alongside strategic initiatives and acquisitions, underscores APSEZ’s commitment to achieving its ambitious goals and maintaining robust financial growth.
