Adani Ports begins work to expand container handling capacity at Mundra port, Berita Infra, ET Infra | Whuff News


Adani Ports started work to expand container handling capacity at Mundra port

MUMBAI: Adani Ports and Special Economic Ports Ltd (APSEZ) has begun efforts to expand the container handling capacity of Mundra port – India’s largest commercial and container port – with an investment of Rs1,239 crore as the port company controlled by billionaire Gautam Adani plays ‘catch-up’. with the state-owned Jawaharlal Nehru Port Authority (JNPA) located near Mumbai, which was taken over to become the country’s main container port three years ago.

Mundra, the flagship port of APSEZ, India’s largest private port operator, operates four container terminals with a combined capacity of 7.5 million twenty-foot equivalent units (TEU).

In FY22, Mundra handled 6.5 million TEUs, 15 percent more than the 5.66 million TEUs handled in FY21. Higher container volume helped Mundra register an overall growth of 4 per cent in volume to 150.24 million tonnes (mt) in FY22 from 144.38 mt in the previous year.

At an average annual growth rate in the double digits, Mundra port will soon reach its full container handling capacity and will require expansion to meet demand.

At the global level, capacity utilization of 70 percent is considered the ideal level for ports/terminals to operate efficiently without facing problems of congestion and productivity. “At 70 percent capacity utilization, the terminal is working at full efficiency. On top of that, efficiency drops, and delays start happening,” said a port industry source.

Mundra port’s container terminal is currently operating at 87 percent capacity utilization but has managed to fend off congestion that could affect its smooth operations.

APSEZ has revealed its container terminal expansion plans at Mundra port in a recent investor presentation, a copy of which has been reviewed by ET Infra.

“Work on container terminal 5 or CT5 has started which will add 1.2 million TEUs at Mundra port,” said a person familiar with the plans. APSEZ is expected to run the terminal itself, he added.

Containers are the fastest growing cargo segment at Mundra port. Of the 150.24 mt of cargo handled by Mundra port in FY22, containers accounted for 6.5 million TEU or 95 mt while dry cargo and liquid cargo accounted for 29 mt and 26.3 mt respectively.

APSEZ added capacity at Mundra port when it had 8 years left of the 30-year concession granted by the Gujarat government to develop and run the port. The firm intends to seek an extension of the concession from the State government while investing in a new container terminal at the port.

Container terminal 1 or CT1 which has the capacity to handle 1.3 million TEU is operated by Mundra International Container Terminal Pvt Ltd (a unit of DP World Ltd Dubai).

Container Terminal 2 or CT2 – Adani Mundra Container Terminal – with capacity to handle 1.8 million TEU is operated by APSEZ itself. The terminal was originally designed to handle 1.3 million TEUs, but as demand increased, APSEZ converted the adjacent dry and broken bulk cargo handling terminal into a container handling facility about four years ago, adding 0.5 million TEU capacity.

A joint venture between APSEZ and Terminal Investment Ltd, a unit of Mediterranean Shipping Co SA, the world’s leading container shipping company by capacity, operates container terminal 3 (CT3) – Adani International Container Terminal Pvt Ltd – with a capacity to handle 3.1 million TEUs.

The 1.3 million TEU container terminal 4 (CT4) – Adani CMA Mundra Terminal Pvt Ltd – is operated by a joint venture between APSEZ and CMA Terminals Holding, a unit of CMA CGM SA, the world’s third largest container carrier.

In comparison, JNPA has five container handling facilities with the capacity to handle 7.6 million TEU. In FY22, these five terminals handled a combined 5.685 million TEUs from 4.677 million TEUs in the previous year.

Nhava Sheva International Container Terminal Pvt Ltd (NSICT) and Nhava Sheva (India) Gateway Terminal Pvt Ltd (NSIGT), two terminals operated by Dubai state-owned DP World, have the capacity to handle 1.2 million TEU and 0.8 million TEU. , respectively.

Gateway Terminals India Pvt Ltd (GTI), 74 percent owned by APM Terminals Management BV, the container port operations unit of Danish shipping and transport giant AP Moller-Maersk A/S, has the capacity to handle 1.8 million TEUs.

Bharat Mumbai Container Terminals Pvt Ltd (BMCT), operated by Singapore’s PSA International Pte Ltd (BMCT), has the capacity to handle 2.4 million TEUs, while JNPA’s self-operated facility is designed to handle 1.4 million TEUs. The Jawaharlal Nehru Port Container Terminal (JNPCT) operated by the port authority was recently awarded to a consortium comprising JM Baxi Ports & Logistics Ltd and CMA Terminals Holding (a subsidiary of CMA CGM SA) under the government’s privatization programme.

Mundra Port will increase its container handling capacity to 8.7 million TEU after the expansion, which is still below JNPA capacity. This is because PSA International has started work on the second phase of the BMCT which will add another 2.4 million TEU by 2025, bringing the total container handling capacity at JNPA to 10 million TEU.



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