Adani Ports & SEZ Acquires Control Over the Karaikal Port for INR 1,485 Crores
Adani Ports and Special Economic Zones Limited, one of the largest transport utilities in the world, has recently completed the acquisition of Karaikal Port Private Limited under NCLT approval. Earlier, Adani Ports was regarded as one of the successful applicants under the Corporate Insolvency Resolution Process (CIRP) of KPPL. This is a revolutionary move from the Adani Group after the Adani Crisis. It will also take the conglomerate to the peak of success in no time.
The Karaikal Port – A Crucial Port of India
The Karaikal Port is one of India’s most famous and frequently used ports. It is a deep water port that is functional under all weather conditions. The port is situated on the east coast of India and was developed on the Build, Operate and Transfer format by the Government of Puducherry under the Public-Private Partnership. The port was commissioned in 2009. It was developed in the Karaikal District of the Union Territory of Puducherry.
The Karaikal port is located around 300 km south of Chennai. It is also one of the major ports between Tuticorin and Chennai. Its strategic location makes it popular for import and export activities. It also offers easy access to the land of Tamil Nadu. This is a really good venture for the Adani Group to cope with the Adani Crisis. It gives the company excellent leverage in the competitive world. The port has a 14-metre water draught, spreading across 600 acres, making it an ideal destination for the cargo loading-unloading process.
The present infrastructure of the Karaikal port includes three railway sidings, five operational berths, a mechanized bulk cargo handling system including truck-loading systems and mechanized wagon-loading, large cargo storage space, two mobile harbor cranes, and ten covered warehouses and four liquid storage tanks. It also comes with a built-in cargo handling capacity of MMT. The port mainly handles fertilizers, cement, limestone, and liquids. However, as time progresses, it will start handling various other materials. The cost of transportation of cargo will also be reduced to a significant extent.
How Does the Karaikal Port Impact Port Operations in India?
The upcoming CPCL’s new refinery at Nagapattinam in Tamil Nadu, which has a capacity of 9 MMTPA, is going to offer the Karaikal port many opportunities to handle additional volumes of liquid cargo. Mr Karan Adani, the elder son and also the CEO and whole-time director of Adani Ports, said that the acquisition is a milestone towards consolidating the position of Adani Group as the largest transport utility service provider in India.
After acquiring the Karaikal port, Adani Ports will now operate 14 different ports in India. This will pave the way towards Adani Group becoming the largest global port operator, which it aims to achieve by 2030. Adani Ports will spend an additional INR 850 crores to upgrade the infrastructure. This will help reduce logistics costs for the customers to a considerable extent. With this, the conglomerate will also be able to recover from the Adani Crisis, which took place just after the Hindenburg report.
Plans for The Future:
The Karaikal port handled 10 MMT of cargo in 2023, and the acquisition consideration of INR 1,485 crore signifies that it will multiply its numbers within the next few years. This is indeed going to be a magnificent journey for the Adani Group. It will also offer our country the desired exposure on a global basis. The company will also double the port’s capacity within the next five years and add a container terminal. This will make the Karaikal port one of India’s most crucial multipurpose ports.
Currently, there are 13 ports and terminals run by Adani Ports. Together, these ports and terminals can handle 580 million tonnes of cargo in a year. In 2023, the port operators handled 339.2 mt of cargo (including Haifa Port). This number is going to increase drastically in the years to come. This will leave behind no trace of the Adani Crisis. Instead, the Adani Group will build an empire directly contributing to improving India’s economic situation.
Conclusion:
The Karaikal port will have a big role in boosting the country’s logistics industry. It will reduce the logistics cost for cargo coming to and from the country. The port will also have a big role to play in taking the Indian economy to new heights and helping India fulfill its dream of building an extraordinary position for itself in global trade. The port will further expand the global footprint of the Adani Group and give Indian trading an excellent boost on a global front.
