Adani Ports today said it has entered into a pact with Larsen & Toubro for acquiring the Kattupalli Port in Tamil Nadu.
This is yet another step by the company to build a network of ports across the Indian coastline and expand its footprint across the South East Coast.
The move comes on the heels of Adani Ports and Special Economic Zone (APSEZ) signing an MoU with Kerala to develop and operate Rs 4,089 crore Vizhinjam International Deepwater Multipurpose Seaport Project on PPP mode.
The Kattupalli Port is located adjacent to Ennore Port, where APSEZ, part of the USD 10 billion Adani Group, is developing the Ennore container terminal.
"APSEZ, India's largest port developer and operator has, through its subsidiary Adani Kattupalli Port Private Limited (AKPPL), entered into an in principle agreement for strategic acquisition of the Kattupalli Port in Tamil Nadu from L&T Shipbuilding Limited (LTSB) a subsidiary of Larsen & Toubro Limited," the company said in a statement.
The port is being demerged from LTSB. Currently L&T operates both the port and shipyard under this entity.
The acquisition is subject to approvals from the state as well as the central government.
"While awaiting the necessary approvals, APSEZ through its subsidiary AKPPL has entered into an arrangement to take over the operations of the Port," the statement said.
Kattupalli is a deep water all weather port with an international container terminal located 35 kms from Chennai, Tamil Nadu and well connected to the hinterland.
The Port commenced commercial operations in January 2013 and has two berths with a total quay length of about 710 meters. The berths are equipped with six quay cranes and designed to handle container, dry bulk & break-bulk cargo.
The port has a cargo handling capacity of 1.2 million TEUs per annum.
Adani Group Chairman Gautam Adani said: "The Kattupalli agreement is yet another step by us to continue to enable the development of the port infrastructure that is critical for our country. The Kattupalli port is a strategic complement to our Ennore Container terminal which is getting commissioned next year.
"Both these ports will substantially help reduce congestion in the region and will thereby help contribute to the rapid growth of the State of Tamil Nadu and the surrounding regions."
Adani owns and operates seven ports and terminals - Mundra, Dahej, Kandla and Hazira in Gujarat, Dhamra in Orissa, Mormugao in Goa and Visakhapatnam in Andhra Pradesh.
