Fuelling Adani Ports’ Maritime Ambitions

FOR KARAN ADANI, MD, Adani Ports & SEZ (APSEZ), FY24 was a watershed moment for India’s largest ports company and the country’s maritime history. APSEZ’s revenues increased a record 28%, net profit rose 50% and cargo movement recorded a 24% growth, the highest ever, during the fiscal. Internationalisation efforts gained momentum with a string of acquisitions and operationalisation of the first phase of India’s first deep-sea transshipment hub at Vizhinjam near Thiruvananthapuram.

Karan Adani, who began his career with the Adani Group in 2009 at Mundra port and took over as CEO of APSEZ in 2016, was made MD in January this year. But the 36-year-old and eldest son of Adani Group chairman Gautam Adani has an ambition: To make APSEZ the largest port operator in the world by 2030, carbon neutral by 2025 and net-zero by 2040. “Aspiration is a promise we make to ourselves. Under our chairman’s leadership, we will continue to aim for the stars — and achieve them,” says Karan.

The plan to achieve the goals consists of two key components — aligning with the group’s capabilities and robust port infrastructure plays in India’s economic growth. The second is focusing on global expansion through strategic acquisitions and partnerships. “The government has set a target of $1 trillion in merchandise exports by 2030 and to reduce logistics cost-to-GDP ratio from the current 14% to 8%. Our goal is a responsibility we are honoured to take on,” says Karan.

The plan is to build a network of ports along the world’s most critical shipping and trade routes and establish an integrated global infrastructure. That journey is on. In August, APSEZ acquired Astro Offshore, which has a fleet of 26 offshore support vessels in West Asia, India, Far East Asia and Africa, for $185 million. In May, it signed a 30-year concession agreement with the Tanzania Ports Authority to operate and manage container terminal II at the Dar es Salaam gateway port in Tanzania and acquired 95% stake in Tanzania International Container Terminal Services Ltd. from Hutchison Port Holdings. In December last year, the world’s largest container shipping line, Mediterranean Shipping Company (MSC), acquired a 49% stake in Adani Ennore Container Terminal. In July 2022, APSEZ and Israel’s Gadot Group won the tender to privatise the Port of Haifa, the second-largest port in Israel, which handles nearly half of the country’s container cargo. A consortium of APSEZ, Sri Lanka’s John Keells Holdings and the Sri Lanka Ports Authority is building the Colombo West International Terminal, the largest and busiest transshipment port in the Indian Ocean.

APSEZ has built/acquired 14 ports and terminals within two decades, and now handles 27% of the country’s cargo volumes. Four ports — Mundra at 27, Kattupalli at 57, Hazira at 68 and Krishnapatnam at 71 — figure in the Container Port Performance Index 2023 by the World Bank and S&P Global Market Intelligence.

Vizhinjam port will be a key asset in APSEZ’s future growth and a crucial pillar in India’s broader economic and South Asia’s maritime development journey, says Karan. “Vizhinjam is set to divert a significant portion of India’s transshipment cargo from ports, including Colombo, Singapore, and Dubai, which will help retain India’s transshipment traffic, while reducing both costs and transit times.” Its strategic location near one of the world’s busiest maritime shipping routes connecting Europe, West Asia, and Asia and a natural depth exceeding 20 meters allowing it to accommodate the largest container ships (ultra-large container vessels) without the need for extensive dredging make Vizhinjam a big asset. So far, nine transshipment vessels have berthed at Vizhinjam, six of them belonging to MSC. Among these was MSC Claude Girardet, with a capacity of over 24,000 containers, making it the largest ship ever to berth in the region, says Karan.

APSEZ’s gross sales during the year increased to ₹26,771 crore, while profit after tax (PAT) grew to ₹8,111 crore. In Q1FY25, APSEZ posted its highest-ever quarterly revenue at ₹7,560 crore, with a 21% YoY growth. In FY24, APSEZ handled 419.9 metric million tonnes (MMT) of cargo, a 24% YoY. It includes 27% of the country’s total cargo and 44% of container cargo. Of this, 180 MMT (16% rise YoY) was handled by Mundra. Jawaharlal Nehru Port Trust (JNPT), which handled 83.49 MMT of cargo, is the country’s second-largest port operator.

Adani says APSEZ’s success in port operations is driven by focus on infrastructure development, technology adoption, and operational excellence to enhance throughput, ensuring the smooth handling of mega vessels, higher cargo volumes, and diverse cargo types. The emphasis is on supply chain integration, talent development and sustainability. From power to logistics to warehousing, APSEZ leverages the group ecosystem to provide end-to-end solutions with multimodal transport, warehousing, or last-mile delivery. Automation in cargo handling and yard management, the latest terminal operating systems and port community systems enable real-time data exchanges to ensure seamless operations.

Setting high benchmarks as goals is not just an aspiration for the Adanis. Karan Adani’s dreams for APSEZ are now well within his reach.