Adani Ports Customs Revenue Exceeds Rs.80,000 Cr

Handling around a quarter of India’s port cargo and generating over 80,000 crore worth of customs revenue for the government, Adani Ports and the Special Economic Zone are busy and are compelling reasons for the long-term sustainability of the company and the group.

The port operator, which is also the flagship of the Adani Group, owns and operates 14 ports and terminals in India from Mundra on the west coast, Vizinjam and Karaikal on the south coast to Krishnapatnam and Dhamra in the east, which the company has practically captured almost all of coast of India. The pace of expansion can be seen from the fact that the company had only eight ports and terminals in 2017. Since then, a significant proportion of the additions have resulted from acquisitions.

An important measure of how much it contributes to the treasury is customs revenue from cargo channeled through its ports and inland container depots. Customs revenue was £41,110 billion in FY21, rising to £60,945 billion in FY22 and £80,732 billion in the year just ended.

The rail freight it pays to Indian Railways for freight through its port is also substantial, more than doubling in the last two years to £14,034 billion in FY23.

The revenue share, the water fees it pays to the respective maritime authorities and port authorities, was ₹906 crore in FY23, about 1.5 times what it paid in FY21.

cargo handling

In FY23, the company handled 339 million tonnes of cargo, up 8.6 percent year-on-year and 37 percent year-on-year. With the recent acquisition of Karaikal Port on the NCLT route, the company adds 22 to its cargo-handling capacity million tons to 580 million tons.

According to data, its traffic growth, as measured by the volume of cargo handled, has increased by 25 percent annually since its inception in 2001, while total port cargo in India has grown by 7 percent over the same period. Over the past five years, growth has both slowed – while Adani Ports’ traffic grew at 13 percent annually, ports across India grew at just 3 percent.

Adani Ports has almost half of the market share of cargo handled by non-big ports. Ports managed by the central government are classified as large ports.

After Gujarat Pipavav, Mundra was the second private port established in the country. With a capacity of 264 million tons and a searing pace of growth, the port has surpassed all other ports in the country, state or private.

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