MUMBAI : Adani Ports and Special Economic Zone Ltd (APSEZ) aims to become the world’s largest port company by 2030, Mr. Karan Adani, Chief Executive Officer of APSEZ has said.
India’s biggest private port operator also intends to emerge as the first global carbon-neutral port company by 2025 with the entire port cargo operations powered by renewable energy, Karan said in the firm’s annual report for 2020-21.
APSEZ runs 12 ports and terminals across the western and eastern seaboards with a capacity to handle 498 million tonnes (mt) of cargo. In FY21, APSEZ handled 247 mt of cargo, accounting for 25 per cent share of India’s EXIM cargo market. The company invested ₹26,000 crore in less than a year to expand its business by acquiring Dighi, Krishnapatnam and Gangavaram ports and other rail assets.
Inland freight biz
As a part of expansion into inland freight terminal business, Adani Logistics Ltd, a wholly-owned unit, has won bids to develop freight terminals with exclusive station connectivity across eight locations — New Palghar, New Sanjali, New Dadri, New Chawapail, New Bhimsen, New Gholwad, New Gothangam and New Phulerain. Once developed, these terminals will be linked to the Dedicated Freight Corridor (DFC).
“At APSEZ, we see exciting possibilities ahead,” Karan said outlining the road map for Mission 2025.
“We have upwardly revised our port cargo throughput target by 25 per cent (100 mt) to 500 mt by 2025. We intend to increase the return on capital employed (RoCE) from around 12% in FY21 to over 20% by 2025. We intend to enhance our country coverage beyond 90 per cent, increasing market share from existing 25% in FY21 to a projected 40% by 2025,” he said. “We are among the five fastest growing port companies in the world; we intend to retain this position by achieving 500 mt of cargo throughput by 2025 which will lead to enhancing our market share in of the Indian market to 40% ,” Karan stated.
APSEZ, he said, has “possibly the world’s best port company EBIDTA margin of over 70 per cent”.
Uncertainties related to trade flows are encouraging users to move from proprietary logistics management to completely outsourced models. There is a greater willingness to trust specialised logistics partners who bring to the table economies of scale, cutting-edge technologies, multi-modal engagements and a complement of diverse competencies.
“To evolve and emerge as a logistics partner of preference, we will continue to manage port cargo for our customers while a growing proportion of our revenues are likely to be derived from logistics where we deliver directly to our customers, saving them time, cost and effort,” he said.
“By virtue of being present in three segments – port operation, logistics and SEZ infrastructure management – we are attractively positioned to stitch impactful and organic solutions,” he added.
Source : The Hindu Businessline