Adani’s Mundra Port Approaches Full Container Handling Capacity; Capacity expansion in progress

The Port of Mundra, India’s largest commercial and container port in Gujarat, handled 6.64 million 20-foot units or TEUs in FY23 and is banking on a new facility under construction to meet demand for cargo in steel containers in and out to cover the Northwest region of India.

Mundra, the flagship port of Adani Ports and Special Economic Zone Ltd (APSEZ), India’s largest private port operator, operates four container terminals with a total capacity of 7.5 million TEU.

In FY22, Mundra handled 6.52 million TEU.

Globally, a capacity utilization of 70 percent is considered the ideal level for ports/terminals to operate efficiently without facing congestion and productivity issues. “At 70 percent utilization, the terminal works with full efficiency. In addition, efficiency is falling and delays are occurring,” said a port industry source.

“Today, the Port of Mundra has already reached 90 percent of its container capacity,” said Atit Mahajan, Managing Director, CMA CGM Agencies (India) Pvt Ltd while speaking at the Northern India Steamer Agents Association (NISAA) business forum in Delhi on March 10. March.

CMA CGM Agencies (India) is the Indian unit of CMA CGM SA, the third largest container line in the world. A subsidiary of CMA CGM operates one of the four container terminals in Mundra in partnership with APSEZ.

Ports/terminals on the west coast of India have a capacity of 17.4 million TEU to cater to the demand in the northwestern hinterland of India. Around 90 percent of this capacity is accounted for by the ports of Mundra and Jawaharlal Nehru.

Mahajan said annual container throughput on the west coast has reached 70 percent of capacity.

Port/terminal operators will expand 60 percent of existing container handling capacity on the west coast by 2030. “But at a realistic growth rate of 7 percent, we will reach 100 percent capacity from the 60 percent added by 2029,” he explained, while emphasizing the importance of building capacity to meet demand.

Last year, APSEZ started work on a container terminal that will add up to 1.2 million TEUs at the Port of Mundra. However, the company has yet to announce a timeline for the new terminal to become operational.

APSEZ is expected to operate the terminal itself, sources said.

Containers are the fastest growing cargo segment in the Port of Mundra. Of the 155.54 million tonnes

APSEZ expands capacity at Mundra Port when approximately 8 years remain of the 30-year concession granted by the Gujarat Government to develop and operate the port. The company relies on the extension of the concession by the state government and at the same time invests in a new container terminal at the port.

At Mundra, the 1.3 million TEU container terminal 1 or CT1 is operated by Mundra International Container Terminal Pvt Ltd (a unit of Dubai’s DP World Ltd).

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

In FY23, 0.45 million TEUs were handled at this terminal, compared to 0.39 million TEUs in FY22.

An equal joint venture between APSEZ and Terminal Investment Ltd, a unit of Mediterranean Shipping Co SA, the world’s largest container ship by capacity, operates Container Terminal 3 (CT3) – Adani International Container Terminal Pvt Ltd – with a capacity of 3.1 million TEU .

The 1.3 million TEU container terminal 4 (CT4) – Adani CMA Mundra Terminal Pvt Ltd – is operated by an equal joint venture between APSEZ and CMA Terminals Holding, a unit of CMA CGM SA. It handled 1.15 million TEUs in FY23, up from 1.07 million TEUs in FY22.

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