Adani Group denies closure of Krishnapatnam container terminal

Rumor Denied

• Politician claimed last container ship handled on Jan 24, shifting business to Chennai
• Financial concerns: Potential revenue loss of Rs 1,000 crore and 10,000 jobs cited
• Gangavaram Port launch and Visakhapatnam terminal expansion influencing rumors
• Adani's clarification: Krishnapatnam operations continuing and will be strengthened
• Adani highlights port's success and infrastructure improvement
• No job losses, employee welfare remains a priority

Visakhapatnam: Adani Group, which owns the Adani Krishnapatnam Port Limited (AKPL) has dismissed as figments of imagination the claim in certain sections that they are shutting down their container terminal operations and shifting it to Kattupalli Port.

A politburo member of TDP leader and former Minister from Nellore Somireddy Chandramohan Reddy had claimed some time ago that the last container ship would be handled at Krishnapatnam Port on January 24 and after that it would be relocated to Chennai. He said the closure would lead to loss of huge revenue to the exchequer. He had alleged that the closure would result in loss of revenue amounting to Rs 1,000 crore per annum and forfeiture of direct and indirect job opportunities for 10,000 people.

There were also reports that the Gangavaram Port which was acquired by Adani Group is getting ready for commercial launch of its container terminal and the reported decision for shifting assumed importance to focus more business from Visakhapatnam. Visakha Container Terminal Private Limited (VCTPL) operates a world-class container terminal as a BOT operator of Visakhapatnam Port Authority (VPA) in this region. Paradip Port, which is also planning to operate a container terminal, is keen on preventing flight of cargo to Andhra Pradesh.

In a clarification issued on Sunday with reference to the media reports on closure of container operations at Krishnapatnam Port and shifting the same to Kattupalli Port, a spokesman of Adani Krishnapatnam Port Limited said all these statements are baseless and false. Adani Ports Special Economic Zone (APSEZ), India's largest integrated ports and logistics company, has witnessed tremendous growth over the last few years. Following the same trajectory AKPL has also been on a growth path and its business is increasing on a regular basis.

"Contrary to the media reports we would like to highlight that we are continuing our container operations in Krishnapatnam Port and will further strengthen it in the coming years. Krishnapatnam is an important port for us and we are continuously focusing on building and strengthening its operations year on year (YOY). The infrastructure like berths, yard and equipment remains as it is. The terminal can handle any container vessel that calls upon Krishnapatnam Port," the management of AKPL said in the release.

It said, "We at Adani are an employee-driven company and there has been no job loss and all employees are taken care of. We have always focused on the welfare of our employees and stakeholders and will strive harder for the betterment of our employees." The company said as a part of PPP model, the Krishnapatnam Port is paying revenue share to the government of Andhra Pradesh regularly. The revenue of the State government is increasing in view of growth in cargo volume every year,

"We would like to state that Adani Krishnapatnam Port is committed to the development and growth of Andhra Pradesh and has always supported its overall growth," the spokesman for AKPL, stated.