Adani Group likely to buy Gopalpur Port in Odisha

• Gopalpur Port has a capacity to handle large vessels and offers a strategic location near Vizag and the proposed Mulapeta Port
  
• APSEZ has a track record of successful port acquisitions, including Gangavaram, Krishnapatnam, and Dhamra ports
• Potential acquisition of RINL could further enhance Adani Group’s port operations in the region

Visakhapatnam: After acquiring Gangavaram Port from the DVS Raju-led consortium and other stakeholders, the Adani Ports and Special Economic Zone (APSEZ), India’s largest private port operator, has set its eyes on the Gopalpur Port located in Odisha, about 280 km from Visakhapatnam and 130 km from the proposed Mulapeta Port in Srikakulam district of Andhra Pradesh.

Apparently, the Adani Group is keen to further strengthen its grip over the eastern hinterland of the country. Gopalpur Port has a capacity to handle Cape Size vessels with a draft of 14.5 meters. It has 2.5 million tonnes of covered area and an annual cargo handling capacity of 25 million tonnes. Orissa Stevedores Ltd (OSL) also has a stake in Gopalpur Port.

Unconfirmed sources said billionaire Gautam Adani-led Adani Group is in talks to acquire Gopalpur Port from real estate conglomerate Shapoorji Pallonji belonging to SP Group. Details regarding the development could not be confirmed but a person familiar with Gopalpur Port told Bizz Buzz on condition of anonymity that the talks were in progress.

APSEZ, which celebrated the 25 years of Mundra Port in Gujarat in October, has a dozen ports in its kitty as part of its ambitious expansion plan. The group, before taking over Gangavaram Port, had acquired Krishnapatnam Port in AP and Dhamra in Odisha, which is close to Kolkata Port.

APSEZ had achieved a milestone by recording its highest-ever half yearly revenue of Rs 12,894 crore, an EBITDA of Rs 7,429 crore and cargo volumes of 203 MMT during H1 FY24. The performance was on the back of a 14 per cent YoY increase in cargo volume with improving operational efficiencies at its ports.

The company raised its EBIDTA at its domestic ports by 220 bps YoY to 72 per cent during H1 of FY24, Karan Adani, CEO and Whole Time Director of APSEZ, had stated.

Speculation is going around over the possibility of another sensational acquisition ever since the Central government announced its decision in 2021 for strategic disinvestment of Rashtriya Ispat Nigam Limited (RINL), the corproate entity of Visakhapatnam Steel Plant. RINL has a production capacity of 7.3 million tonnes per annum and a land bank of nearly 20,000 acres at a single location. In its neighborhood, Gangavaram Port is located, giving rise to the belief in various circles that if it acquires RINL, the Adani Group will get bright prospects to further expand its stacking area of the port.

In September, 2021, APSEZ had announced the complete acquisition of Gangavaram Port involving a total investment of Rs 6,200 crore. The Krishnapatnam Port acquisition was completed from Krishnapatnam Port Company Ltd (KPCL) for an amount of Rs 12,000 crore. Both have potential for huge capacity augmentation.

APSEZ had acquired Dhamra Port on payment of Rs 5500 crore in 2014 from Tata Steel and L&T. The port capacity, according to sources in the industry, can be increased from 25 million tonnes to 100 million tonnes.