Adani Ports and Special Economic Zone Ltd (APSEZ) has achieved a significant milestone in its plans to expand Mundra Port, located in Gujarat’s Kutch district. The company has secured key approvals from the Central government to more than double the port’s current capacity to 514 million tonnes. This expansion, requiring an investment of Rs 45,000 crore, aims to bolster Mundra Port’s position as Bharat’s largest commercial port.
Mundra Port currently has a capacity to handle 225 million tonnes of cargo annually, including 9.5 million twenty-foot equivalent units (TEUs). In the fiscal year 2024, it managed 179.6 million tonnes of cargo, solidifying its status as Bharat’s top container port by volume. With projections suggesting it could surpass 200 million tonnes in the fiscal year 2025, Mundra is approaching its operational capacity.
To accommodate the growing demand, APSEZ applied for an expansion plan covering 3,335 hectares under its Waterfront Development Plan. This expansion will include facilities for multi-purpose, liquid, gas, and cryogenic cargo.
The Expert Appraisal Committee (EAC) of the Ministry of Environment, Forest and Climate Change has recommended the proposal for environment and Coastal Regulation Zone (CRZ) clearance, pending final approval from the ministry.
The extension of Mundra Port’s capacity is crucial for APSEZ’s ambition to become the world’s largest transport utility and port operator by 2030. The company currently manages 15 ports and terminals along India’s coastline, collectively handling 627 million tonnes annually.
Apart from its operations in Bharat, APSEZ also oversees international terminals like Haifa Port in Israel and a container terminal in Dar es Salaam Port, Tanzania, with plans to develop a terminal at Colombo Port.
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The original concession agreement for Mundra Port, awarded by the Gujarat government over two decades ago, is set to expire in 2031 after a 30-year tenure. APSEZ’s successful environmental approvals could strengthen its case for extending the concession period. While the original agreements do not include an automatic extension clause, Gujarat’s port policy from 1997 provides options for extension, subject to government terms and conditions.
With the impending decision on extending concessions for ports with expiring agreements, APSEZ’s expansion plans at Mundra Port signify a significant step towards enhancing Bharat’s maritime infrastructure and solidifying its position in global trade operations.
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