Indian Transport & Logistics

Adani Ports to acquire Gopalpur Port in Odisha for Rs 3,080 crore

Gopalpur is a road-rail connected port with capacity of 20mn tonnes per annum & significant potential for expansion

Adani Ports to acquire Gopalpur Port in Odisha for Rs 3,080 crore

Photo Credit: Adani Ports

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Adani Ports and Special Economic Zone (APSEZ), India’s largest ports and logistics company, has entered into a definitive agreement to purchase the 56 percent stake of SP Group and 39 percent of Orissa Stevedores (OSL) in Gopalpur Port (GPL).

The acquisition has been finalised at an enterprise value of Rs 3,080 crore (with a contingent consideration of Rs 270 crores to be payable after 5.5 years), says an official release from APSEZ.

The equity consideration for the 95 percent stake is Rs. 1,349 crore, APSEZ said in a regulatory filing with the exchanges.

"Gopalpur port is located on the east coast of India and has the capacity to handle 20 million tonnes per annum. The Government of Odisha awarded a 30-year concession to GPL in 2006, with the provision of two extensions of 10 years each.

"As a deep draft, multi-cargo port, Gopalpur handles a diverse mix of dry bulk cargo including iron ore, coal, limestone, ilmenite and alumina. The port plays an important role in supporting the growth of mineral-based industries in its hinterland like iron & steel, alumina and others. The concessionaire has full flexibility to design and expand the port as per the market demand. GPL has received more than 500 acres of land on lease for development, with an option to receive additional land on lease to meet future capacity expansions."

The ppor t is well connected with its hinterland through the national Highway NH16, and a dedicated railway line connects the port with the Chennai-Howrah main line, the release added.

“The acquisition of Gopalpur Port will allow us to deliver more integrated and enhanced solutions to our customers," says Karan Adani, Managing Director, APSEZ. "Its location will allow us unprecedented access to the mining hubs of Odisha and neighbouring states and allow us to expand our hinterland logistics footprint. GPL will add to the Adani Group’s pan-India port network, significantly enhance overall cargo volume, and strengthen APSEZ’s integrated logistics approach.”

GPL is estimated to handle about 11.3 million tonnes of cargo in FY2024 (YoY growth of 52 percent) and earn a revenue of Rs 520 crore (YoY growth of 39 percent), the release added.

APSEZ, a part of the globally diversified Adani Group, operates seven ports and terminals on the west coast (Mundra, Tuna, Dahej and Hazira in Gujarat, Mormugao in Goa, Dighi in Maharashtra and Vizhinjam in Kerala) and seven ports and terminals on the East coast of India (Haldia in West Bengal, Dhamra in Odisha, Gangavaram and Krishnapatnam in Andhra Pradesh, Kattupalli and Ennore in Tamil Nadu and Karaikal in Puducherry). The company is also developing a transshipment port at Colombo, Sri Lanka and operates the Haifa Port in Israel, the release added.

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