Looking beyond ports, APSEZ to expand acquisition to transport utility sector

Adani Ports and Special Economic Zone (APSEZ), is now planning to expand its acquisitions to include companies and services in the transport utility sector.

Eyeing to be the world’s top transport utility by 2025, APSEZ looks to grow its cargo volumes to 1 billion tonnes by 2030, a significant increase from the current 339.2 million tonne.  

APSEZ will now focus on investing in operational ports outside of India, with a limited equity exposure. It is already planning to collaborate with strong local partners who have a financial stake in the game.

APSEZ, which currently operated 12 ports and terminals with a combined capacity to handle 580 million tonnes of cargo annually has set a target to become the world’s largest port company by 2030.

“At APSEZ, we will extend our inorganic approach for port acquisition to the acquisition of companies and services in the transport utility space,” the company said in its annual report for FY23.

The company, a key player in ports sector is actively exploring opportunities in various markets, with a particular focus on Asia, Africa, and other regions.

To strengthen the company’s business model Karan Adani, CEO and full-time director of APSEZ, has highlighted key areas that will enhance the robustness of the company’s operations.

APSEZ has plans to collaborate closely with state governments to develop the industrial hinterland surrounding its ports to drive industrial development and ensure a steady flow of port volumes for the company in the future. Moreover, it has also accumulated a land bank measuring over 12,000 hectares in order to attract industrial investments.

In addition to this, APSEZ aims to transition from being a port intermediary, to providing doorstep delivery services, thereby increasing their share of customers’ logistics spending and generating steady income.

“We have extended from Indian ports to investments in Haifa (Israel) and Colombo (container terminal) with the objective to provide a global transport utility solution,” the company said.

APSEZ has also expressed its interest in gradually expanding its port interests beyond the borders of India.

As per recent development, the company is reportedly on the verge of securing the rights to develop and operate cargo berths at Tanzania’s main port Dar es Salaam. This will mark the third global acquisition by APSEZ’s port unit in recent years.

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