Adani Ports makes bold move to dominate India’s western coast with new Deendayal terminal

Adani Ports and Special Economic Zone Ltd, India’s largest port developer and operator, has signed a pivotal concession agreement with the Deendayal Port Authority to develop a new multipurpose terminal at Deendayal Port in Kandla, Gujarat. This agreement marks a significant expansion of Adani Ports’ operations and is set to increase cargo handling capacity on India’s western coast. The agreement comes amidst a push for greater efficiency in logistics and port infrastructure in India, which is crucial for supporting the country’s growing trade volumes.

Adani Ports expands at Deendayal Port to handle clean cargo

Under the newly signed agreement, Adani Ports and Special Economic Zone Ltd will take charge of developing Berth No. 13 at Deendayal Port. This initiative is set to diversify the company’s operations at the port by allowing it to handle multipurpose clean cargo, including container cargo, in addition to the existing dry bulk cargo it already manages. In July 2024, Adani Ports and Special Economic Zone Ltd was granted a Letter of Intent to develop this berth for a 30-year period under the Design, Build, Finance, Operate, and Transfer model, emphasizing the long-term commitment to enhancing India’s port infrastructure.

Adani Ports and Special Economic Zone Ltd has established a new subsidiary, DPA Container and Clean Cargo Terminal Limited, specifically for the development and operation of this terminal. The new facility will be 300 meters long and is expected to have an annual capacity of 5.7 million metric tonnes, significantly boosting the handling capabilities of Deendayal Port once it becomes operational by the financial year 2027. Ashwani Gupta, CEO of Adani Ports and Special Economic Zone Ltd, stated that this new development will further solidify the company’s presence on India’s western coast and strengthen its ability to serve customers in Gujarat and northern India.

Adani Ports’ strategic growth on India’s western coast

The development of the new terminal is part of Adani Ports and Special Economic Zone Ltd’s broader strategy to strengthen its foothold along India’s western coast. The company already operates several ports on this coast, including Mundra, Tuna, Dahej, Hazira, and Mormugao, which collectively handle a substantial portion of the country’s total port volumes. The new terminal at Deendayal Port will further diversify its cargo portfolio, allowing it to manage a mix of containers and multipurpose cargo more efficiently.

Adani Ports and Special Economic Zone Ltd’s strategy also aligns with India’s larger goals to improve its port infrastructure, which is essential for supporting its expanding economy. The development at Deendayal Port, particularly with the addition of multipurpose cargo capabilities, is expected to make the region a more attractive hub for international trade. As global supply chains shift and evolve, India is positioning itself as a key player in global logistics, and Adani Ports and Special Economic Zone Ltd is at the forefront of this transformation.

A bold step towards logistics supremacy

Industry experts believe that this development is a significant move for Adani Ports and Special Economic Zone Ltd in its quest to dominate the global logistics sector. By investing heavily in port infrastructure and cargo handling capacities, the company is poised to capture a growing share of both domestic and international trade. This development is a clear signal of Adani Ports and Special Economic Zone Ltd’s intent to become a global leader in port operations and logistics solutions, leveraging its strategic assets across India and beyond.

The analyst further pointed out that the expansion at Deendayal Port will not only increase the company’s cargo handling capabilities but also help decongest other ports in the region, improving overall efficiency in India’s port infrastructure. This could have a multiplier effect on the economy, facilitating smoother trade flows and reducing costs for exporters and importers alike.