Adani Ports Signs Major Concession Agreement for Multipurpose Terminal at Deendayal Port, Expanding Its Presence in Gujarat
Adani Ports and Special Economic Zone Ltd (APSEZ), India’s largest private port operator, has further cemented its foothold in the country’s maritime sector by signing a significant concession agreement with the Deendayal Port Authority. The deal, announced on Tuesday, grants APSEZ the rights to equip and operate a 5.7 million tonne (mt) capacity multipurpose terminal at Deendayal Port in Kandla, Gujarat, one of India’s most strategically important ports.
This 30-year contract marks a vital development for APSEZ, as the company continues to expand its operations at Deendayal Port, formerly known as Kandla Port, India’s second-largest state-owned port in terms of cargo volumes handled. Since 2015, APSEZ has been operating a dry bulk cargo terminal at Tuna Tekra, a satellite facility of Deendayal Port, handling bulk cargo and enhancing the port’s overall capacity. The new agreement is set to bolster APSEZ’s influence and capabilities at the port, enabling the company to diversify its cargo handling capabilities and boost throughput.
The Deal: Details and Strategic Importance
The concession agreement, won by APSEZ through a competitive tender, grants the port operator the rights to develop and operate a multipurpose terminal focusing on handling clean cargo, including containers, at Berth No. 13 of the Deendayal Port. The terminal’s capacity is slated at 5.7 mt, comprising 4.2 mt of dry bulk, break bulk, and clean cargo, alongside an additional capacity of 0.10 million twenty-foot equivalent units (TEUs) for containerized goods. The quay, which measures 300 meters in length, can accommodate a single large vessel of up to 75,000 dead weight tons (dwt) with a draft of 14.5 meters.
The terminal will serve as a hub for handling a diverse range of cargo, including machinery, Ro-Ro (roll-on/roll-off) cargo, sugar, salt, wooden logs, silica sand, and containers. By taking over the terminal, APSEZ will be tasked with installing state-of-the-art cargo handling equipment, such as rubber-tyred gantry cranes, reach stackers, spreaders, and other specialized gears for dry bulk cargo handling. Additionally, the terminal will include essential infrastructure like storage yards, covered sheds, and internal road and rail facilities, allowing for seamless cargo movement.
The terminal’s privatization comes under the Indian government’s ambitious National Monetisation Pipeline (NMP), which aims to privatize operational infrastructure assets to generate revenue through public-private partnerships (PPP). This move is in line with the government’s efforts to modernize and improve port infrastructure across the country, tapping into private sector expertise to increase efficiency, investment, and technological adoption.
APSEZ’s Competitive Edge
Adani Ports won the 30-year concession by offering the highest royalty of ₹200 per ton, reflecting the company’s confidence in the port’s strategic value and future potential. The deal is expected to not only enhance APSEZ’s revenue stream but also solidify its position as a dominant player in India’s maritime logistics space.
The decision to privatize Berth No. 13 aligns with the government’s broader vision of promoting private sector participation in port management to boost efficiency and international competitiveness. Under the terms of the concession agreement, APSEZ will have the freedom to set tariffs based on prevailing market conditions, providing flexibility in pricing and allowing the company to remain competitive while maximizing returns.
Deendayal Port, located in the Gulf of Kutch on India’s western coast, plays a crucial role in India’s maritime trade. With its proximity to key international shipping routes and extensive hinterland connectivity, the port handles a substantial portion of India’s dry bulk and liquid cargo, including crude oil, coal, and fertilizers. The addition of a multipurpose terminal under APSEZ’s management is expected to further enhance the port’s capabilities, providing modern infrastructure to handle a broader array of cargo types, including high-value and specialized goods.
Enhancing Southern India Presence: APSEZ’s Strategic Expansion
In a parallel development, Adani Logistics Ltd, a wholly owned subsidiary of APSEZ, has expanded its inland logistics network by adding a new inland container depot (ICD) at Malur, near Bangalore, to its operational footprint. This move is set to strengthen the company’s presence in southern India, a region that has become increasingly important for trade and logistics, given its growing manufacturing and export sectors.
The Malur ICD will serve as a key node in APSEZ’s logistics network, facilitating the movement of containerized cargo between southern India’s hinterland and major ports. The facility will also enhance connectivity to APSEZ’s flagship Mundra Port, enabling efficient cargo transfers and improving supply chain reliability for businesses operating in the region. This expansion underscores APSEZ’s strategic focus on building a comprehensive, nationwide logistics network that integrates port operations with inland transport infrastructure.
Broader Impact on India’s Port Sector
APSEZ’s latest concession agreement for Deendayal Port’s multipurpose terminal reflects the ongoing transformation of India’s port sector, as the government seeks to leverage private sector participation to modernize port infrastructure and enhance operational efficiency. The National Monetisation Pipeline, of which this terminal is a part, underscores the Indian government’s commitment to unlocking value from existing assets through private sector expertise, to attract investment and drive economic growth.
The privatization of Berth No. 13 is expected to bring about several benefits for the port and the broader region. APSEZ’s experience and operational expertise in running large-scale port terminals will likely lead to improved cargo handling efficiency, reduced turnaround times for vessels, and better utilization of port infrastructure. These improvements will have a ripple effect on the port’s overall throughput, attracting more shipping lines and cargo owners to Deendayal Port.
Additionally, the development of the multipurpose terminal is poised to contribute to the local economy by creating jobs, both during the construction phase and throughout the terminal’s operational life. Increased cargo handling capacity will also boost trade, support regional industries, and help India meet its growing import and export demands.
As APSEZ continues to expand its presence across India’s ports, the company is positioning itself to play a key role in shaping the future of India’s maritime trade and logistics sector. The company’s investments in modern infrastructure and its strategic focus on integrating port operations with inland logistics are expected to drive growth and contribute to India’s ambition of becoming a global logistics hub.
The signing of the concession agreement for Deendayal Port’s multipurpose terminal is a significant milestone for both APSEZ and India’s maritime sector. By taking control of this key asset, APSEZ is poised to strengthen its dominance in the port sector while contributing to the modernization of India’s critical infrastructure. As the country continues to embrace public-private partnerships, deals like this one are likely to play a pivotal role in driving economic growth, enhancing trade, and positioning India as a competitive player in global maritime logistics.
