APSEZL to handle 400 MMTPA by 2025

BVJK Sharma,
Director (ports),
Adani Ports.

LNG/LPG is definitely one of the strategic area that we focus on, says Adani Ports Director (ports) BVJK Sharma.

Adani Ports has grown into one of the largest ports company in the country with 10 ports across India. Going ahead what are the plans in terms of capacity expansion? How much you want to take it to in next 5 years?

With 10 ports and terminals along east and west coast of India, APSEZL is the largest private port operator in India. Currently, we have 350+ MMTPA cargo handling capacity and we are planning to handle 400 MMTPA of cargo by Yr 2025.

Which segments you see have high growth potential, dry bulk, liquid or container?

We envisage container cargo has high growth potential out of above three types of cargo.

All India cargo growth rate would be around 10% Y-0-Y. Our cargo will grow 1.5X cargo growth rate of major ports of India. Our prediction is based on our strategy of cargo diversification, which means we will handle multiple products at our different ports as we are currently doing at Mundra port.

Which new geographical areas are you looking at in India and abroad?

We keep evaluating business opportunities based on hinterland cargo potential on case to case basis. Currently, in India, we are not present in Maharashtra, Karnataka, Andhra Pradesh, and West Bengal. We are looking at opportunities in these states.

Aborad, in Mayanmar, a container terminal is already under operation. Other than this, South Asia and South East Asia is our focus for new business development.

Since the economic conditions are not portrayed as optimistic in terms of GDP growth, consumption data and overall demand, how do you see that impact Adani Ports and the industry at large?

We understand that ports are integral to international trade which is linked to economic conditions; thereby we face direct impacts of economic dynamics.

However, in tough times as well, APSEZL registered sustainable growth because of following strategies, which insulated us from GDP fluctuations, Consumption, and overall market demand:

• Strategic Asset base
• Customer Centricity
• Long term contract
• Diversified Cargo base

We continue to follow same approach in future as well to ensure sustainability of growth.

Given the scenario, what is the kind of investments planned for FY20 and coming years?

We are looking at capacity expansion or new capacity development for:

• LNG/LPG
• Cargo handling capacity at Vinzhinzam port

Strategic capacity expansion in Chennai and Dhamra area

• Logistics expansion: currently from 3 logistics parks to 15 parks
• Rakes: Currently from 20+ rakes to 100+ rakes
• Integrated logistics model leveraging technology

Are you looking at new LNG terminals in India or abroad?

We keep evaluating new business opportunities based on hinterland cargo potential. LNG/LPG is definitely one of the strategic area that we focus on.

Has the $650 million fund raise for redemption of bonds complete? How long will it take to complete the raising?

We have got overwhelming response for fund raising. Any new development will be updated through media releases.

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