Adani Ports to expand cargo, plans revenue growth
PORTS & SHIPPING

Adani Ports to expand cargo, plans revenue growth

In a bid to become the preferred logistics partner, Adani Ports and Special Economic Zone (APSEZ) intends to continue expanding its port cargo and focus on logistical services to increase the proportion of its revenue stream.

In its yearly report for FY21, the company said it holds a 25% market share of India’s Exim cargo. The company said that it intends to maintain this position by attaining 500 million tonne cargo throughput by 2025 and would lead to increasing its market share of the Indian market to 40%.

In FY21, APSEZ handled a cargo volume of 247 million tonnes, a growth of 11% from last year, against a 5% drop listed by all India ports.

According to the annual report, the company recorded a return on capital employed (ROCE) of 12% in FY21, focusing on taking the company’s ROCE to over 20% by 2025.

The company said that the Dhamra and Kattupalli ports, procured in 2015 and 2018, respectively, have turned around with positive yields on investments.

During the year, the company announced four acquisitions — Krishnapatnam Port, Gangavaram Port, Dighi Ports, and Sarguja Rail Corridor Pvt. Ltd (SRCPL) — thus, developing East Coast - West Coast parity. It also declared the building up of a container terminal at Colombo port in partnership with John Keells and SLPA.

The company in 2019 also declared establishing of a container terminal in Myanmar, but since the military coup and subsequent violence is observing the evolving situation, it has created uncertainties and intends to drop the project and write down project investments in full if the country is classified under Office of Foreign Asset Control (OFAC) taking into account shareholder opinion.

In the logistics business, the company scaled up and broadened its railway rolling stock business taking benefit of changes in the General-Purpose Wagon Investment Scheme (GPWIS) of Indian Railways. This enabled the company to add contracts to operate 16 new rakes for raw material transportation from the mines, which earlier approved serving customers just from ports.

The annual report said that the company aims to build 30 million square feet warehousing capacity during this period and has declared a strategic partnership with e-commerce player Flipkart.

Image Source


Also read: JNPT's container cargo traffic rose 65.38% to 454,385 TEUs in May

Also read: Mumbai Port Trust to develop new container terminal

In a bid to become the preferred logistics partner, Adani Ports and Special Economic Zone (APSEZ) intends to continue expanding its port cargo and focus on logistical services to increase the proportion of its revenue stream. In its yearly report for FY21, the company said it holds a 25% market share of India’s Exim cargo. The company said that it intends to maintain this position by attaining 500 million tonne cargo throughput by 2025 and would lead to increasing its market share of the Indian market to 40%. In FY21, APSEZ handled a cargo volume of 247 million tonnes, a growth of 11% from last year, against a 5% drop listed by all India ports. According to the annual report, the company recorded a return on capital employed (ROCE) of 12% in FY21, focusing on taking the company’s ROCE to over 20% by 2025. The company said that the Dhamra and Kattupalli ports, procured in 2015 and 2018, respectively, have turned around with positive yields on investments. During the year, the company announced four acquisitions — Krishnapatnam Port, Gangavaram Port, Dighi Ports, and Sarguja Rail Corridor Pvt. Ltd (SRCPL) — thus, developing East Coast - West Coast parity. It also declared the building up of a container terminal at Colombo port in partnership with John Keells and SLPA. The company in 2019 also declared establishing of a container terminal in Myanmar, but since the military coup and subsequent violence is observing the evolving situation, it has created uncertainties and intends to drop the project and write down project investments in full if the country is classified under Office of Foreign Asset Control (OFAC) taking into account shareholder opinion. In the logistics business, the company scaled up and broadened its railway rolling stock business taking benefit of changes in the General-Purpose Wagon Investment Scheme (GPWIS) of Indian Railways. This enabled the company to add contracts to operate 16 new rakes for raw material transportation from the mines, which earlier approved serving customers just from ports. The annual report said that the company aims to build 30 million square feet warehousing capacity during this period and has declared a strategic partnership with e-commerce player Flipkart. Image Source Also read: JNPT's container cargo traffic rose 65.38% to 454,385 TEUs in May Also read: Mumbai Port Trust to develop new container terminal

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