The Adani Port and Special Economic Zone (APSEZ) has acquired 58.1% stake in Gangavaram Port Limited (GPL) as part of its expansion strategy.
In a statement, APSEZ said it had purchased the stake for $500 million (R 3,604 Cr) and it did so to improve its market share and enhance cargo efficiencies.
GPL is located in the northern part of Andhra Pradesh next to Vizag Port. It is the second largest non-major port in Andhra Pradesh, having been established under concession from Government of Andhra Pradesh (GoAP) that extends till 2059.
It is an all-weather, deep water, multipurpose port capable of handling fully laden super cape size vessels of up to 200,000 dead weight tonnage (DWT).
Currently, GPL operates 9 berths and has free hold land of 1,800 acres. With a master plan capacity for 250 MMTPA with 31 berths, GPL has sufficient headroom to support future growth.
GPL will benefit from APSEZ’s pan-India footprint, logistics integration, customer centric approach, operational efficiencies and strong balance sheet to deliver a combination of high growth by enhancing market share and add additional cargo types and improved margins and returns.
Karan Adani, CEO and Whole Time Director of APSEZ said, “The acquisition of GPL is a further augmentation of our vision of capitalizing on an expanded logistics network effect that generates greater value as it expands.
“Every additional node that we are able to add to our network allows us to deliver a greater level of integrated and enhanced solutions to our customers. In this context, GPL is a tremendous addition to our portfolio.”