India: Adani acquires Dhamra Port

Adani, the country’s largest port operator, has acquired Dhamra port from Tata Steel and L&T for about INR 55 billion.

Earlier in May’05, Tata Steel and L&T formed an equal joint venture company Dhamra Port Company Limited (DPCL) .

Acquisition of port will give an opportunity to Adani in the development and growth of the Mundra port situated on West Coast of India. DPCL has got concession from Odisha Government to build and operate port on Dhamra River for 35 year with 4 year concession for construction.

The first phase of construction completed with an investment of INR 32 billion, started in Mar’07. After acquiring the port, Adani will start the second phase of development within 90 days which is expected to complete in 30 months. Expansion of port will help to increase its handling capacity to 100 MnT till 2020.

In FY14 the port handled nearly 14.3 MnT of cargoes.

SteelMint analyzed that Dhamra port handled around 9.3 MnT of imported Coal in FY14.Out of the total Coal imported, around 5.2 MnT comprises of Non-coking Coal while the rest 4.1 MnT was Coking Coal.

Total Coal quantity at Dhamra port came from different destinations i.e. Australia, South Africa & Indonesia.

Australia, a major supplier of Coking Coal, has supplied a total of 5 MnT of Coal which comprises of 4.6 MnT of Thermal grade Coal and 0.4 MnT of Steel grade Coal in FY’14.

Tata Steel, Adani, Saraogi Udyog & Usha Martin are the major importers of Coal at Dhamra port in FY14, imported nearly 3.4 MnT, 1.2 MnT, 0.62 MnT & 0.57 MnT of coal respectively.