APSEZ looks beyond the ports and extends the acquisition into the transportation supply sector

Adani Ports and Special Economic Zone (APSEZ) is now planning to expand its acquisitions into companies and services in the transportation supply sector.

Aiming to become the world’s leading transport company by 2025, APSEZ aims to increase its cargo volume to 1 billion tons by 2030, a significant increase from the current 339.2 million tons.

APSEZ will now focus on investing in ports of operations outside of India with a limited equity commitment. It is already planned to work with strong local partners who are financially involved in the game.

APSEZ, which currently operates 12 ports and terminals with a total capacity to handle 580 million tons of cargo annually, aims to become the world’s largest port company by 2030.

“At APSEZ, we will expand our inorganic approach to port acquisition to include acquiring companies and services in the transportation supply space,” the company said in its annual report for fiscal year 2023.

The company, a major player in the port sector, is actively exploring opportunities in various markets, with a particular focus on Asia, Africa and other regions.

To strengthen the company’s business model, Karan Adani, CEO and Executive Director of APSEZ, has highlighted key areas that will improve the resilience of the company’s operations.

APSEZ plans to work closely with state governments to develop the industrial hinterland around its ports to boost industrial development and ensure a steady flow of port volume for the company in the future. In addition, a land area of ​​over 12,000 hectares has been amassed to attract industrial investment.

In addition, APSEZ aims to transition from a port intermediary to a door-to-door delivery service provider, thereby increasing its share of customers’ logistics expenses and generating a stable income.

“We have expanded from Indian ports to include investments in Haifa (Israel) and Colombo (container terminal) with the goal of providing a global transportation service solution,” the company said.

APSEZ has also expressed an interest in progressively expanding its port interests beyond the borders of India.

According to recent developments, the company is reportedly close to securing the rights to develop and operate cargo berths in Tanzania’s main port, Dar es Salaam. This will be the third global acquisition by APSEZ’s port division in recent years.

Related Articles

Back to top button