Infrastructure
Adani Group Eyes Global Dominance: $3 Billion Investment Targets International Port Expansion
Haifa Port.
In a strategic move to leverage the increasing demand for iron-ore and coal imports and boost exports of finished goods, the Adani Group has earmarked a $3 billion investment to enhance its global port capacity.
This expansion aims to establish a significant presence in the corridor connecting India to Europe via Central and West Asia.
The conglomerate intends to increase its overall port container-handling capacity from approximately 600 million metric tonnes per annum (MMTPA) — of which 420 MMTPA is domestic — to 800 MMTPA over the next two years. This growth will be driven primarily through a series of international acquisitions.
Currentl y, Adani Group operates ports in countries such as Israel (Haifa), Sri Lanka, Indonesia, Tanzania, and Australia, and has signed MOUs for various port-related activities in Vietnam, Malaysia, and the Philippines.
Adani Group is targeting at least three major ports along the coastal borders of Europe, Africa, and Southeast Asia, aligning with its strategy to enhance its foothold in the crucial international trade routes currently dominated by China. The expansion aligns with the Indian government's vision to strengthen trade ties with European, West Asian, and African nations.
Funding for the $3 billion capital expenditure will come from a mix of cash, internal accruals, and debt, according to one source. Additionally, proceeds from an upcoming fundraising initiative may also support the acquisition of new overseas ports, reports Money control.
Strategic drive for greater capacity
APSEZ, India’s largest private ports operator, currently owns 15 ports and terminals, with seven on the west coast and eight on the east coast. The company handled a record domestic cargo volume of 420 MMTPA in FY24, a 24 per cent increase from the previous year. Adani's cargo volumes represent approximately 25 per cent of India’s total cargo volumes, as per data from the Ministry of Ports, Shipping and Waterways and Adani's regulatory filings.
The internal discussions regarding the mega port expansion have been ongoing for the past three months. Ashwani Gupta, whole-time director and CEO of Adani Ports and SEZ, mentioned in a recent earnings call, "Moving forward, we are under discussion for further expansion in the international ports."
"Capex for Adani Ports is expected to range between Rs 10,500 crore and Rs 11,500 crore in FY25," Gupta added.
Adani Ports is focusing on cargo traffic growth in the Middle East, Southeast Asia, Africa, and the Mediterranean in the medium term, with strategic acquisitions and partnerships planned for these regions over the next 3-5 years.
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